Econviews logo

August 26, 2021

Econviews Monthly

Argentina: Special Analysis on Construction and Real Estate

BY Alejandro Giacoia, Andrés Borenstein, Miguel A. Kiguel, Lorena Giorgio, Isaías Marini

<i class="fab fa-twitter" aria-hidden="true"></i> Share on twitter
<i class="fab fa-whatsapp" aria-hidden="true"></i> Share on whatsapp
<i class="fab fa-facebook" aria-hidden="true"></i> Share on facebook
<i class="fab fa-linkedin" aria-hidden="true"></i> Share on linkedin
<i class="fas fa-envelope" aria-hidden="true"></i> Share on email
<i class="fab fa-reddit" aria-hidden="true"></i> Share on reddit

Listen to our reports with a personalized podcasts through your Amazon Alexa or Apple devices audio translated into several languages

( 2 mins)

I. Is there a way to turnaround the economy?

Inflation, the exchange rate, and economic activity are moving in election mode. The government is using all its firepower to keep the main economic variables under control. Inflation, which had reached 4.8% in March is now hovering at around 3%, the official exchange rate continues to crawl at only 1.2% per month, much lower than inflation, while economic activity is slowly picking up pace as evidenced from the recent published figures. So far so good, but the flipside of these outcomes is the build-up of imbalances that will be costly to unwind.

II. Construction and Real Estate in Argentina

Construction and real estate sectors are at a juncture. While building costs in Argentina are cheap compared both with history and relevant peer countries, the macro situation is far from ideal to think in a booming market. Property prices for offices and premium apartments have been constantly falling, threatening the fundamentals of the business. At the same time, rental prices for households are going up, in part due to new regulations which were intended to help tenants, that ended up reducing the supply of apartments for lease. All these trends, coupled with the novelty that Covid-19 brought to the world of workplaces has changed the way we analyze the construction and real estate markets.

EconViews-206_Aug-2021

Argentina: Open for Business

( 2 mins) “High-Beta” is one of the most used analogies to describe the Argentine economy. There is a mathematical reason for that. Argentina is not the economy with the worst performance in a medium-term perspective compared to

Read More »

Argentina: Waiting for the budget

( 2 mins) On September 15, 3 days after the primary elections, Congress will receive from Martín Guzmán the budget bill for 2022. Although the budget has not traditionally had the importance in Argentina that it usually has

Read More »