OFFPLAN NEWS
(04.08.2007 )
Real estate in Argentina Property analysis in Formosa, Argentina
Real Estate leading consultants announced that Argentina reached a stage in the typical property Argentina cycle where demand exerts upward pressure on prices and this pressure stimulates growth in supply, in turn. Specialists recognize some fundamental characteristics of the current growth. These include “the improved quality of the average construction project (which makes it more expensive); the relatively high growth in the population segment that is old enough to get married and become independent (which exerts greater pressure on demand); the fact that the economy has moved out of a deep recession that was largely unprecedented; and a positive wealth effect that has several different sources.” However, real estate companies warn, “After those various stimuli have been exhausted, both prices and volume will tend to align with the ‘fundamentals’ of the economy, and that will mean that growth rates decelerate.”
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