The postcards were replicated in many parts of the planet. Images of families that left the big cities to settle in houses located in remote areas, with green spaces and comforts for another type of life. It also happened in Argentina, with a strong demand for country properties, a more stable population in summer places and a contraction in activity in areas such as downtown Buenos Aires. “The demand moved towards houses with gardens, for purchase and rent. In the City, apartments with lots of light, balcony and terraces were requested”, indicates Horace Benvenutogeneral manager of Izrastzoff.
The question that arises, more than two years after the quarantine was established in Argentina, is what changed in the real estate business, if that phenomenon became a trend or if the market returned -or will return- to pre-pandemic “normality”. “It is a scenario that is here to stay, trends that were gradually taking place but that were motorized in the midst of the pandemic. Forced, people began to spend more time in their own homes, rethinking the place in which they want to live and deepening some needs for change around space and their quality of life, “he explains. Frank ForteCEO and co-founder of Mudafy.
For Alexander Genevaof CNG Group“what was going to happen in ten years, happened in two. For example, offices have to generate free spaces, meeting rooms, restaurants, terraces, adapt to what has been projected in the world. Here, this accelerated and there is no building that can be thought of without these things”.
There is a new way of living and the market knows it. “The new buildings include a social kitchen. Before, they were spaces that were closed, in a room, but today they have a bar for lunch. We realized that our houses are used, not only slept. The departments became more social”, expands Ginevra.
Demand. Both the pandemic and the competitiveness of the exchange rate and the value of the cost per square meter to build brought demands for new lots, for finished land in projects that were already advanced and for “townhouses”. Is this scenario here to stay? For Benvenuto, the diagnosis is partial: “In the City of Buenos Aires, the issue of units with more light, balcony and green spaces continues to be valued, something that did not happen before. There are people who wanted to go live abroad, for which they will have to sell their apartment in CABA. The issue of virtual work also affects. As people do not go to the office five days a week, the demand will continue, ”she adds.
Forte observes that the demands are increasingly focused on properties with large and comfortable areas, with at least 2 or 3 rooms, uncovered or with outdoor spaces, such as gardens, terraces or patios; “cWith the houses, land and PHs gaining prominence”, judgment.
The transfers of large cities to more remote areas had an impact, above all, in Greater Buenos Aires. “Our suburban development segment had a very good time in the last two years. In 2020, we saw in our secondary market a demand that tripled the usual for lots and houses, although this trend in 2021 dropped a little and stabilized, “he details. Joseph IribarrenCommercial Director of EIDICO. The executive explains that “the real estate market saw a very marked growth in a type of development that seeks not only to respond to the financing needs of the first home, but also to become an investment opportunity.”
For Ginevra, the real estate market is facing an “opportunity”. “The shares do not stop falling, but I always have the brick asset. The rest is pure smoke. When crises like this happen, they are exposed. Brick may be more expensive, cheaper, but it is. In the world, real estate values flew”. A clear example is what happens with the microcenter. Although the reconversion of the City of Buenos Aires was no more than a project, the world shows what the future will be. “Manhattan is a clear example. You have hotels, gastronomy, housing. Before, you only went to work during the weekr”, adds the broker.
Iribarren agrees when talking about perspectives: “In our segment, we continue to see an opportunity, although the secondary market stabilized and resales, which had a very high peak between August 2020 and much of 2021, tended to stabilize. The question is whether the demand for green and quality of life will continue and we believe so”.
When it comes to talking about prices, the diagnosis is not conclusive: “Regarding houses and land, the demand slackened a lot. A year and a half or two years ago it was built for dollar values 30/40% lower than today. It was much more of an incentive to buy land and build a house. In rents, we foresee that in the Capital the values will continue to rise and in the province the stabilization will be accentuated and, even, a drop”, says Benvenuto. According to a survey of property prices carried out by the University of Saint Andrew Y Free market for monitoring the real estate market in AMBA, “lThe markets for the sale of houses and apartments in AMBA have been declining since July 2021 and October 2019, respectively. In May, in AMBA, the sale price per square meter of houses and apartments fell by 0.2% and 0.8% in dollars, respectively, compared to April”. Numbers that reflect the reality of a business that also wants to be reborn.
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by Marcelo Alfano
