Tuesday, July 16News That Matters

What to expect in the Argentine assets sector for this year.

Ruben Rojkes, expert Argentinian construction Engineer.

Argentina encompasses a housing deficit of regarding 3 million homes. This deficit increases at a rate of approximately thirty six,000 homes per year. In addition, of 12.2 million total households, 16 % correspond to rental housing, which is appreciate about 2 million families.

When the normalization of the foreign exchange market in 2015, there was a push in construction and therefore the mortgage sector in Argentina, but soon once, in 2018, the symptoms of the residential construction sector contracted once more significantly, with investment in infrastructure because of the impact of the exchange rate and the requirement for fiscal adjustment.

Much has been said concerning the crisis in the real estate sector in Argentina in recent times, today we tend to speak with engineer Ruben Rojkés, founder of Avanco, a true estate developer with 25 years of experience in the Argentine market; who will share with us his vision for Tucumán.

The residential sector, which had boomed in recent times, has suffered from Argentina’s monetary crisis throughout the last years, furthermore from the high inflation currently existing within the country. Inflation in explicit is increasingly turning into the most concern for developers facing new realty projects. As a result of a rise in the price of land and in the price of construction, investment in the residential sector has considerably decreased over the last months.

During this regard, Rojkés tells us that whereas families grow, young individuals become freelance and demand moves, they all face the identical downside: “the dearth of financing for the middle class sectors, which is a chronic problem of the country”.

In line with the newest knowledge provided by the Association of Notaries Public of the Town of Buenos Aires, the whole amount of property purchase and sale deeds registered in the tenth month of 2018 a decrease of 40.7% from the extent of one year before , when adding 3,669 records, while the entire amount of transactions made grew 18.five% to $ 17,728 million.

With regard to expectations, Ruben Rojkés, like several other entrepreneurs in the important estate sector, agrees that the elections will have a great impact on the economy and so have an on the spot impact on the important estate market.