When analyzing the state of the real estate market, businessman and developer Eduardo Costantini assures that “there is an optimistic but challenging outlook in the face of all the changes that are currently taking place.”
In an exhaustive analysis of the market he mentions “that the number of annual deeds has reached 50 thousand and that, although it reflects a incipient recovery, It must be taken into account that it is a record figure that was not recorded during the period 2018-2024.”
Furthermore, he adds that “despite the drop in the level of activity that is being observed, there are also good news like market deregulation and also the new rental law, which facilitated property sales and, at the same time, added the supply of properties for rent.”
Costantini lists other aspects to highlight. “It is important to take into account the impact that the US$ 20 billion has and will have, as a result of money laundering. which undoubtedly brings a positive effect to the real estate market,” he points out.
He also mentions “the incipient emergence of mortgage loans that, although they are few for now, in this case the important thing is that they are growing.”
-Is the expectation generated by the appearance of mortgage loans reflected in reality?
– The market is going through a period of transition and little by little all the variables will be accommodated. The market will tend to regularize and interest rates on loans will tend to fall. Furthermore, healthy competition will generate this decline.
-How does the level of recession influence this transition period?
-Without a doubt, the recession is another variable. Now the economy is is recovering and the purchasing power of salaries and income is rising, although gradually. If this continues and is consolidated in the medium term, it will be a very important factor for the market.
Eduardo Costantini, more than four decades in the financial and real estate markets, and in art.-What place does the variable of the increase in dollars in the cost of construction occupy in the market?
-He dollar increase in construction cost It is very high. Comparing the period of November 2023 with November 2024, an increase of approximately 60% was recorded.
In a dollarized economy, where savings are made in dollars and a similar increase in costs is recorded, developers, Although we are optimistic, we are going to have to reflect this increase in costs in the projectsWhich, without a doubt, will translate into an increase in the sales price. This increase will depend on the type of project. In the most luxurious ones, which have a higher cost due to the quality of the materials, the increase will surely be greater. These modifications will also take a few months and will surely occur with the rearrangement of supply and demand.
-How do new projects compete with used ones?
-He The price of used ones will also go up. For example, a family that decides to sell their apartment to buy a new one will not have enough dollars to do so and, therefore, will decide not to sell. This is going to cause an increase in the price of used vehicles, which is already being observed. In any case, it is important to highlight that there are different forces at work in the market. It is also important to highlight that The Government is doing everything possible to facilitate the flow of transactions. For example, there is a resolution that allows tickets to be mortgaged (divisible mortgages), which makes it easier to sell from the well with mortgage credit.
Costantini highlights that “all these measures present an optimistic outlook.” However, he immediately clarifies that “the developer has to go with Careful, have solvency, analyze well how you sell your products.”
“Many developers – he continues – have sold in dollars and today they find themselves out of pocket due to the increase in the cost of construction. They have sold in dollars with a fixed fee and that difference generates a direct loss in the project and also translates into economic losses.”
In this context, the diagnosis of the economy in general is key. “We must take into account the behavior of all variables, that the projects are shoehorned during the adjustment and that the price varies according to the construction index,” warns the developer.
Eduardo Costantini with the painting “Diego and I” by Frida Kahlo. Gentleness-As for products, which ones dominate the offer?
-As always, the quality of the project is very important. Its location is key. Furthermore, the city is expanding and new areas are emerging where people find it more attractive. But I repeat, the quality of the project as a whole is very important.
-Does the demand match the interest in these projects?
–we are not in the presence of a euphoric market. The real estate market has not accompanied, for example, the enormous rise in the value of stocks or bonds. He financial market, meanwhile, has experienced a resounding rise and that also has a positive effect on the real estate market. In any case, it is still an important factor and there are people who have invested in these markets and who get rid of some shares or bonds to buy a property, for example, because they see it as a safer, less volatile investment.
-Does the investor, the final consumer or a mix of both segments predominate in the buyer profile?
– In the market for new projects there is a higher percentage of investors. We also see interest from developers. Both in Nordelta and in Puertos, this year we have had very good sales of land that we call macrolots and where the developers are investors and are interested in carrying out different projects. They look forward and see Argentina with stability, they analyze the effect of advent of mortgage loans and observe a valuation in dollars of Argentine assets. And while these measures quickly materialized in stocks and bonds, they have not yet registered in real estate.
Costantini also refers to the current economic situation. “He program is well anchored, It has sustainability because, as we all know, it is based on fiscal balance. It is very important going forward that the State, the government in this case, can really make the public sector more efficient and reduce its size and ultimately reduce taxes, of course in the medium and long term.”
Furthermore, he adds that “the Argentine economy should, without a doubt, lower the incidence of public spending on the gross productat least by 10 points, which is what has been added since 2012. In these years, public spending has practically increased a lot and there is a very high tax structure.”
“We must also open the economy, Argentina has a lot to do and this change of direction has many positive aspectsbut it also has negative effects such as all the effort that must be made and where there are sectors that lose competitiveness. Just as we see the cost of construction increase, food and services increase. Argentina would have to lower these costs and be more competitive,” concludes the businessman. «
The businessman and founder of Malba Eduardo Costantini.Minibio
Eduardo Francisco Costantini (Buenos Aires, 1946) has more than 40 years of experience in the financial market and in the development of innovative and large-scale real estate projects. He is founder and main shareholder of Consultatio Real Estate and Consultatio Asset Management, in 2024 he acquired the shares of TPCG Valores. He has a degree in Economics (UCA, Argentina) and a Master of Arts in Quantitive Economics (University of East Anglia, England) and his operations are carried out in Argentina, Uruguay and the United States.
He is the creator of Nordelta; Ports in Escobar; and the complexes Oceana in Key Biscayne and Bal Harbor. In Argentina, its last completed residential building is Oceana Puerto Maderoand is developing Oceana Nordelta and Huergo 475 (CABA).
What is it in?
Consultatio, the developer of Eduardo Costantini, has several projects under its belt. After finishing Oceana Puerto Madero, he continues with the development of Oceana Nordeltain Tigre, which will soon will release its model unit and will begin deliveries in August of this year. And also Huergo 475, on Paseo del Bajo, which will open in the third quarter of this year.
During 2025 They are also thinking of launching Catalinasa project of 100 thousand salable m2 on Avenida Madero. They are going to continue developing Nordelta Centro and Puertos, in Escobar.
Huergo 475 occupies a lot strategically located on Paseo del Bajo. It will open in the third quarter of this year. In addition, they are attentive to the offer that arises in different areas to undertake new projects. They are even looking for land to develop cities-towns like Nordelta or Puertos.
At the same time, they are attentive to the properties that the State Property Administration Agency will offerwhich has already announced a sales program.
Costantini reports that in Puertos, in Escobar, they sold all the macrolots and those that remain will largely be used for parking, because the bay requires it. They are also thinking about a new medium density center on route 25where a supermarket and a service station were recently inaugurated, and now an office building with premises on the ground floor will be added. In addition, crossing the trunk there is a bay with macrolots where different water projects will be developed.
Meanwhile, they are sketching what the project that will be built on the 65-hectare land adjacent to Puertos will be like.