Argentine real estate market is now in full swing after the cessation that suffered in 2007. The sales prices of new and used housing has grown considerably in the past year and is expected that in 2011 increase the percentage of such growth rates in both the housing market and in the office. The weakening of the dollar with inflation of Argentina's currency and economic improvement of the country (in part based on the enormous growth of the agricultural economy and the exploitation of natural resources and energy) have created the conditions for produce a significant real demand for home buyers in the major cities (many of them from the field, thanks to the boom of sojadólares "), profit-hungry investors and families increase their purchasing power under that economic improvement.
But there are factors that remind us of our English property market, primarily those related to the development process of real estate investing, especially with respect to the ground. In Argentina the planning regulations are far more backward than in Spain, and Spatial concepts, planning for large scale soil and active management are nonexistent in their zoning laws; effectively by the absence of effective legislation to this effect, is causing a price bubble in the soil under the speculation of the owners thereof that is leading to overheating of the housing prices in major cities . As in Spain (at the time of the "law of the third" *), the ground has gone from about 25/20% of the cost of each home to 50% of the , which makes investment reduce their profitability to be practically impossible. The reason, again, is the disproportionate growth of land prices in relation to the costs of the finished housing caused by the shortage of land put into market and ineffective zoning laws for the management of the . One problem that we know very well in Spain, although I pretend to disguise accusing developers of being the cause of the disproportionate cost of housing.
However, while it occurs this disproportionate growth of land prices in major cities caused by the increase in housing prices to unimaginable levels, housing demand continues to rise , so new ways are needed to meet it. Recall that to date, the most widespread promotion has focused on the homes of small and medium size (up to two rooms) , which were the most popular among investors were taking positions on the market. Many were executed promotions of its kind in the best locations of major cities, and in the case of Buenos Aires, housing supply more than three bedrooms is now insufficient for the growing demand for families who need homes larger. And this demand can only be satisfied by developing affordable soils located on the outskirts of the city .
Therefore, although there are still investment opportunities in prime locations major cities, they will have to increase demands featured product quality to compete with the excess supply in these areas , and development of large areas of the periphery (Vr. Almagro and Villa Crespo, Buenos Aires), focusing in larger units and quality are presented as investment options very promising for the coming years. Subsequent comments identifies these areas and the most interesting investment options.
MBQ Group
*: Total cost housing: 1 / 3 soil, 1 / 3 Building, 1 / 3 Net profit.
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