Breaks 23-month trendWednesday, February 26, 2014
Real estate sales rise 27% in BA province
Real estate sales increased 27 percent last January breaking a 23- month trend of falling transactions in Buenos Aires province, reported the province’s notary association yesterday.
This marks the first time that the Buenos Aires province real estate sector reports positive numbers in almost two years. However, this does not mean this sector can breathe a sigh of relief.
The statistics from last month show 3,918 sales and purchases for a total of 1.3 billion pesos, which signifies a 27-percent increase in sales from January 2013 and a 59 percent increase in the value of sales.
But despite the growth, “it is still well below the activity for the same period in the past few years,” noted the report.
In comparison with 2012, the gap was 19 percentage points lower, and the gap was even higher in respect to 2010 with the difference being a 24-percentage-point drop.
“After 23 months of falling real estate activity, we had to mark a change in tendency in the corresponding statistics of the month of January, 2014,” said notary association president Jorge A. Mateo.
The real estate sector has suffered in the past few years in large part due to a series of capital controls that have made it difficult to obtain dollars legally.
The real estate market in Buenos Aires City showed a marked recovery in the last five months of 2013, a year in which sales plunged 22.9 percent compared to 2012, the Buenos Aires City Notary Association yesterday.
The gap between the official and unofficial exchange rates has caused uncertainty in the market because property holders are hesitant to sell while potential buyers do not want to pay the premium to obtain dollars illegally.
Real estate brokers often help resolve these discrepancies by negotiating a price between the blue dollar and official dollar exchange rates, with a part of the sale being denominated in pesos.