Argentina property prices may surge 50% in two years, experts say

Property prices in Argentina could surge by as much as 50% within two years, a bold prediction from Juan Ignacio Abuchdid, head of Grupo IEB, and real estate developer Beltrán Briones. They are the creators of Argentina's first Real Estate Investment Trust (REIT), launched amidst a booming real estate summit.

Experts at the summit, organized by LA NACION, overwhelmingly advised buying property rather than selling. The launch of the REIT coincided with its successful fundraising, collecting $66.3 billion pesos (approximately $45 million USD) from 3,523 investors, far exceeding the initial expectation of $15 million.

Briones highlighted that the property market's historical "Achilles' heel" has been the high entry barrier, with average property prices in Buenos Aires around $150,000 USD. The REIT, however, allows entry with investments as low as $1,000 pesos. He noted that while other assets like the Merval index, bonds, and salaries have seen significant dollar-denominated gains in the past two years, property prices have lagged, increasing only 20%. "It is one of the most lagging assets in this economy," he stated.

Adding to the favorable investment outlook, Briones pointed to a shrinking supply of new construction in Buenos Aires, with fewer projects underway against a backdrop of rising demand. He also observed that it now takes two salaries to afford one square meter, compared to five in previous years. This context, combined with what he calls a "mystical relationship between Argentina and brick," suggests a prime opportunity for investment.

Abuchdid echoed his partner's optimism, explaining that the REIT's launch was contingent on improved economic stability and investor confidence. He believes the instrument is not a coincidence but a product of a recovering economic climate, making it an opportune moment for such an investment vehicle.