Specialists agreed that the coronavirus changed the reality of the market. Construction costs, on historic floors for those who have dollars
The value of real estate across the country will drop in the coming months due to the coronavirus pandemic and the drop in demand that started last year, according to different specialists consulted.
“From the second quarter of 2018, demand fell and at the beginning prices were maintained, then they began to drop gradually, between 5 and 10%; with the pandemic, what one can intuit is that there will be a downward price flexibility in the coming months“Juan Pablo Baca, real estate consultant for Coldwell Banker Argentina Uruguay, told Télam.
Baca considered that “a market is coming where the price of publication will continue with a downward price but not abrupt, but there will be aggressive offers.”
“There will be no sharp drops in values because the owners who can wait are going to do it; the next operations that are going to come are from a smaller group of urgent, and investors taking advantage of this urgency are going to try to buy at a low value, “he explained.
Likewise, Baca observed that in “The construction costs, those who have dollar bills will find the cost in historical floors, it is the great opportunity.”
For his part, Sebastián Cantero, from the real estate agency Sebastián Cantero SA, affirmed that the cost of construction decreased “due to which the value of the brand new units decreased, and the values of the used ones should be obligatorily rearranged.”
“In times of crisis like these, those who have savings or the availability of dollars begin to win to face an offer and wait for it; the big difference between 2001 and today is that in 2001 90% of people were indebted to banks, to mortgages, and today that is not happening“he detailed Télam.
He argued that “after a pandemic, after 40 days of inactivity plus the last three years of free fall in the real estate business, the ‘expertise’ of the real estate operator should be guided in making a very good appraisal in such a way that it contemplates this situation, and the value is real and not a value to capture properties and not leave them in permanent stop without selling them “.
“The value of the properties has to drop without a doubt, but in three years they will go up again, which is why brick is the best refuge,” he said.
Meanwhile, real estate adviser Daniel Zampone told Télam that “we were noticing a drop in the value of properties at the end of last year and the beginning of this year, after the pandemic we are going to see another drop in properties.”
“Last year they had dropped between 8 and 12%, after this pandemic we will see that added to that percentage, properties will drop more than 20%,” he estimated.
Finally, the businessman Horacio Ludigliani indicated to Télam that “there are going to be many business opportunities because many people are going to have to sell to shore up their main business.”
“Well investments can be a good investment but they have to be companies that have a lot of supportBecause difficult times are going to pass and you have to see that the company can finish it and that people can continue paying the fee while construction is being done, “he warned.
According to Ludigliani, “we are seeing a 20% drop in properties; those who kept dollars of course will be able to buy much cheaper, especially what is being built.”
The businessman considered that “this is going to be a long one, all investors are thinking about 2021, it is not just another economic crisis, there is a specific event and from there it is rebuilt, here until the vaccine is available there is no certainty of how it’s going to be the market. “
He projected that “the market is no longer going to be the same, the technological elements are putting themselves in value and everything that is selling online is going to bring another dynamic because it is going to allow you to see more variety of prices to the investor.”
“On the buyer side, people may want to decentralize from the capital, the suburban area may begin to be more sought after,” he said, adding that “many opportunities are emerging, many developers looking for hotels that may not be able to return to open and can be reformulated as departments. “
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