“REAL PROPERTY IN ARGENTINA IS 30% - 40% OVERPRICED”

During a dialogue with PERFIL newspaper, Mariano Capellino, CEO of INMSA and expert on Real Estate, warned that the real property prices in Argentina are 30% – 40% overpriced making it more convenient to invest abroad than in the local market today. “Real property is valued either by its return or purchasing power. It is not possible that a property in Argentina has a higher value in USD than in Europe where the purchasing power is twice or 3 times higher and where finance systems to access mortgage loans are available” explained Capellino to PERFIL newspaper. 

The CEO of INMSA also said that the real estate market in Argentina is coming clean about the real estate market with the total stop of operations. “The few operations being carried out involve an average of 25 percent less than their theoretically current values today” he added.

“The real estate return in Argentina is the lowest in history”, he expressed. However, a better picture can be foreseen in the middle term because markets undergoing a crisis have high appreciation rates in the short term. On the other hand, when advising on making investments abroad, he said: “there are two methods to do it. Directly or through an Investment Fund. The benefit of the direct system is that investor is the protagonist throughout the investment process, but this requires knowledge about the market in order to properly manage the asset and for the investment to pay off.

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Source: Perfil