Argentina | Housing and Construction Outlook 2019

Summary

The 2018 exchange rate crisis drove the economy into a strong recession that ended the mortgage spring that had led the previous year's growth. There are still no clear signs of a solid recovery in the sector, although the outlook for 2020 is positive. There are opportunities for improvement in terms of housing.

Key points

• Key points:
• The modification of the economic scenario in 2018 generated a deep recession and deteriorating of social conditions, causing a collapse in the demand for properties and the worsening of accessibility to housing.
• In 2019 the mortgage market continues to slow down and deed levels are close to their historic lows.
• The depreciation of the Argentine peso pushed up the price of properties in local currency against the cost of construction.
• Despite escalating inflation, index-linked loans remain attractive and have very low levels of non-performing loans.
• The outlook for 2020 is positive, taking into account the economic recovery, the incentives given by the government and having already passed the 2019 presidential elections.

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