Argentina | Real Estate and Construction Outlook 2021

Summary

The COVID-19 pandemic caused the real estate market to collapse and led to a substantial change in the interests of the different players. Although housing prices fell significantly, demand is still very weak.

Key points

• Key points:
• The economic boost after the collapse of activity in 2Q20 was led by construction and the automotive industry, but this growth has been slowing down.
• Due to the pandemic, demand grew in the outskirts of large cities and in gated communities, promoted by the possibility of remote work.
• Although the purchase of existing properties became more attractive due to lower prices, there are still incentives for construction, the cost of which has skyrocketed since the beginning of the pandemic, especially due to the increase in the cost of materials.
• Another consequence of the pandemic was the growing interest in the decentralization of workplaces, leading the office market to rethink its dynamics.
• The main challenge for the sector is to optimize construction to ensure flexibility in response to market changes as well as affordability.

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