Argentina | Real Estate and Construction Outlook 2020

Summary

The negative impact of the COVID-19 crisis is historic in the construction industry, already weakened by the recession of previous years. It is essential to boost supply and demand in order to recover the lost attractiveness of the real estate sector.

Key points

• Key points:
• There have been drops in the price of a standard apartment in the city of Buenos Aires that are not enough to boost the weak level of sales.
• There are strong incentives for the construction of properties due to their low cost measured in dollars, which returned to mid-2010 levels and registered a retraction of 11% year-on-year in July 2020.
• Apartment rentals have become an unattractive option for investors due to high levels of inflation.
• The social isolation measures led to the temporary shutdown of offices, a change in work habits and a reconsideration of costs facing a "new normality".
• Construction could be the driving sector of the Argentine economy once the lockdown is over, as it can amplify economic cycles.

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