Residential Real Estate Transactions - Argentina

In Argentina, the market segment of Residential Real Estate Transactions market is expected to witness significant growth.
It is projected that by 2024, the transaction value will reach a staggering US$16.50bn.
Looking ahead, the market is anticipated to maintain a steady growth rate with a compound annual growth rate (CAGR) of 1.00% from 2024 to 2029.
This growth is expected to drive the market volume to US$17.34bn by 2029.
The residential real estate market in Argentina is experiencing a surge in demand from foreign investors due to favorable economic conditions and attractive property prices.

Definition:

Residential real estate transactions refer to the buying, selling, or transfer of ownership of residential properties such as single-family homes, condominiums, townhouses, and apartments. These transactions involve a number of steps and parties, including buyers, sellers, real estate agents, attorneys, lenders, and title companies.

Additional information:

The KPIs covered in this market are the real estate transactions revenue and the average revenue transaction value.

Overall revenue generated by residential real estate transactions

Commercial real estate transactions
Revenue of real estate agencies
Revenue of construction companies

The Residential Real Estate Transactions market in Argentina has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Argentina have shown a strong preference for investing in residential real estate. This is partly due to the historical volatility of the country's economy, which has led many Argentinians to view real estate as a safe and reliable investment option. Additionally, the cultural importance of homeownership in Argentina has also contributed to the demand for residential properties.

Trends in the market: One major trend in the residential real estate market in Argentina is the increasing popularity of urban living. As more people migrate to cities in search of better job opportunities and quality of life, the demand for residential properties in urban areas has risen significantly. This trend is particularly pronounced in major cities like Buenos Aires, where the population density is high and there is a shortage of affordable housing options. Another trend in the market is the growing interest in sustainable and energy-efficient properties. With increasing awareness of environmental issues, customers are looking for homes that are eco-friendly and cost-effective in terms of energy consumption. This has led to a rise in the construction of green buildings and the integration of sustainable features in residential properties.

Local special circumstances: Argentina has a unique set of circumstances that have influenced the development of the residential real estate market. One such circumstance is the high inflation rate in the country, which has led many Argentinians to invest in real estate as a way to protect their wealth from the eroding value of the local currency. Additionally, government policies and regulations have also played a role in shaping the market, such as the implementation of mortgage subsidies and tax incentives for homebuyers.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the residential real estate market in Argentina. One key factor is the low interest rate environment, which has made borrowing more affordable and incentivized potential buyers to enter the market. Additionally, the stability of the Argentine economy in recent years has also boosted consumer confidence and encouraged investment in real estate. In conclusion, the Residential Real Estate Transactions market in Argentina is developing due to customer preferences for real estate as an investment, the trends of urban living and sustainable properties, local special circumstances such as high inflation and government policies, and underlying macroeconomic factors like low interest rates and economic stability. These factors have combined to create a favorable environment for growth in the residential real estate market in Argentina.

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Transactions - Argentina

Volume

Analyst Opinion

Transaction Value

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Transactions - Argentina

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts