Real Estate - Argentina

Argentina

Argentina's Real Estate market market is expected to witness significant growth in the coming years.
By 2024, the market value is projected to reach a staggering US$3.28tn.
Among the various segments, Residential Real Estate holds the largest share, with a projected market volume of US$2.18tn in 2024.
Looking ahead, the market is anticipated to grow at an annual growth rate of 0.90% (CAGR 2024-2028), resulting in a market volume of US$3.40tn by 2028.
In terms of global comparison, China is expected to generate the highest value in the Real Estate market sector, reaching a staggering US$135.70tn in 2024.
However, it is important to note that despite Argentina's growing market, it still lags behind China in terms of overall value.
The real estate market in Argentina is experiencing a surge in demand for luxury properties in Buenos Aires due to an influx of foreign investors.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in Argentina has been experiencing significant developments in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Real Estate market in Argentina have been shifting towards urban living and modern amenities. With the rapid urbanization of the country, there is a growing demand for residential properties in prime locations, especially in major cities like Buenos Aires. Customers are increasingly looking for properties that offer convenience, security, and access to essential services such as schools, hospitals, and shopping centers. Additionally, there is a rising interest in properties that incorporate sustainable features and promote a healthy lifestyle. Trends in the Real Estate market in Argentina indicate a growing demand for rental properties. This trend can be attributed to several factors, including the increasing number of young professionals and students seeking affordable housing options. Additionally, the high inflation rate in the country has made it more challenging for individuals to purchase properties, leading to a higher demand for rental accommodations. As a result, there has been a surge in the construction of residential buildings and apartment complexes to cater to this growing demand. Local special circumstances in Argentina have also influenced the Real Estate market. One significant factor is the availability of credit and mortgage options. The government has implemented policies to increase access to credit and promote homeownership, making it easier for individuals to finance their property purchases. This has led to an increase in property sales and a boost in the overall Real Estate market. Underlying macroeconomic factors have played a crucial role in the development of the Real Estate market in Argentina. The country has experienced periods of economic instability, including high inflation rates and currency devaluation. These factors have led to a decrease in purchasing power and a shift towards real assets such as properties. In times of economic uncertainty, individuals tend to invest in Real Estate as a safe haven for their money, leading to an increase in property demand. In conclusion, the Real Estate market in Argentina is developing in response to customer preferences for urban living, rental accommodations, and modern amenities. The market is also influenced by local special circumstances such as credit availability and government policies promoting homeownership. Underlying macroeconomic factors, including economic instability, have further contributed to the growth of the Real Estate market.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.