Tuesday, November 6th 2012 - 20:41 UTC

Real estate activity drops dramatically in Argentina because of ‘dollar-clamp’

Argentina’s real estate sector is already feeling the negative consequences of the ‘dollar-clamp’ implemented by the government of President Cristina Fernandez a year ago, and in 2013 the effect could have an even greater impact for the construction industry.

Armando Pepe: jobs losses in real estate agents and the construction industry could reach 250.000 in 2013

The statements come from Buenos Aires City Notaries College and the Argentine Real Estate Chamber that supported their words with numbers of the extent of the retraction in sales in the homes’ market.

In Argentina with a long tradition of hyper-inflation, inflation and flash devaluations people prefer to save in US dollars or hard currency and major transactions such as buying or selling a home are done in the US currency. With the dollar-clamp access to dollars is closed and the Argentine government promotes using and saving in Pesos.

Armando Pepe from the Argentine Real Estate Chamber said that operations in September dropped 75% compared to a year ago, and warned about the loss of 115.000 jobs in the construction industry which could climb to 250.000 next year.

“We consider that the fall of the sector in September reached 75% and in October we expect an 85% fall in the sale of second hand houses. The rent market continues active because homeowners unable to sell opt to rent their properties”, said Pepe.

Buenos Aires City Notaries College reported on Monday that the sale of properties during October dropped 47%, according to their registry.

“The current year is forecasted to be very bad for the real estate business, since sales will be below the 2009 level, which was the worst year in record since 1980, when stats on the industry were started”, said the Notaries organization.

So far this year in the first nine months, a total of 35.081 operations were concluded, compared to 34.846 for the same period in 2009.

The construction industry is also suffering the consequences with a significant slowing down of activity according to the official stats office Indec which reported a slide of 9.6% last September compared to the same month a year ago. In the nine months of the year the contraction has reached 2.7%.

“Many real estate agents have closed their offices and many notaries are sharing space and consolidating to cut on expenses”, said Pepe who slammed the government of President Cristina Fernandez as “autistic”, only concerned about the 8N and 7D.

The 8N refers to a massive protest demonstration (and pot banging) organized by simple citizens through the social webs and with no political interference. 7D refers to the legal timetable to implement the splitting up of the Clarin media group, an obsession of President Cristina Fernandez, which she considers her administration’s leading enemy.

19 comments Feed

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1 willi1 (#) Nov 06th, 2012 - 08:58 pm Report abuse
it is like once in the communistic Romania 30 years ago: they did not lend foreign money, even not from the soviet brother. but the country was scrapped down and the people were on the breadline. nevertheless the “king” built a palace in Bukarest. At the end he and his wife were shot...
2 Pirate Love (#) Nov 06th, 2012 - 08:59 pm Report abuse
Argentines will soon understand the concept of consequence.
3 briton (#) Nov 06th, 2012 - 09:02 pm Report abuse
. The 8N refers to a massive protest demonstration (and pot banging) organized by simple yet honest anti CFK, citizens through the social webs and with no political interference.
7D refers to the legal timetable to implement the splitting up ofArgentine mainland , an obsession of President Cristina Fernandez
, which she considers her administration’s leading enemy.
Starting with,
Santa cruz..

So they say.mm.

4 toooldtodieyoung (#) Nov 06th, 2012 - 09:17 pm Report abuse
“Armando Pepe: jobs losses in real estate agents and the construction industry could reach 250.000 in 2013”

Assuming that KFC/ Ol' Turkey Neck / TMBOA / The Harpy is still in power by then.

“As the Sun rises on one power, so it sets on another..........”
5 yankeeboy (#) Nov 06th, 2012 - 10:24 pm Report abuse
Funny I thought there was no U$ clamp and that the economy was still going gangbusters?
Think, care to comment?
6 Britworker (#) Nov 06th, 2012 - 10:37 pm Report abuse
Havn't heard and Falkland Island sabre rattling for a while. Someone must have more important things on her plate. Although there seems to have been more bad news than normal lately a deflection is surely immanent.
7 Beef (#) Nov 06th, 2012 - 11:20 pm Report abuse
I may be tempted to buy a masssive house in BA when the arse falls out of the property market in Argentina. I could then stand bollock naked on the balcony scaring the natives with the size of my balls?
8 Guzz (#) Nov 06th, 2012 - 11:26 pm Report abuse
They'll go:
“Hey, look at that man with the big balls on the balcony. Have a look at his bleach!!!”

9 ptolemy (#) Nov 06th, 2012 - 11:33 pm Report abuse
No one wants pesos. The problem is inflation.
@8 What are you talking about now?
10 briton (#) Nov 07th, 2012 - 01:07 am Report abuse
come on guys i just choked on me tea.lol.
11 Ayayay (#) Nov 07th, 2012 - 02:31 am Report abuse
@7 lol
12 tehsoto (#) Nov 07th, 2012 - 02:48 am Report abuse
@3 briton,

7D does refer to a timetable, but not to “implement the splitting up of Argentine mainland”, but the application of a law she and her administration approved to rip apart a giant media group called “Clarin Media Group”, which has a big amount of licenses for radios and TV channel's aquired during other administrations, she does believes that ripping apart this giant media group that it's completely against her (of course it is, because she wants to destroy it, duh..), then the “bad news” will stop showing up on TV and everything will be safe and we (argentines) won't complain anymore, because everything is orchestrated by how they generate some massive histeria ._.

Oh well, i suppose she can always call her friend Cameron and be like

- Hey, how's your country going?
- It sucks, everyone hates me, how about yours?
- Same, lets fight publicly about the Malvinas/Falklands again
- Sure !

Agh.. i hate governments... i saw “V for Vendetta” the other day.. Anarchocapitalism... i want it... =3
13 Ayayay (#) Nov 07th, 2012 - 05:19 am Report abuse
Shhhhhhhhhhhhh all eyes on US TODAY, ;).haha
14 Uruguayan_And_Proud (#) Nov 07th, 2012 - 10:10 am Report abuse
the reason no one likes to invest or save in your currency is because people can barely predict the outcome and you have such low value. With the US dollar you have predictable and reliable stats, plua it has high value.
15 Idlehands (#) Nov 07th, 2012 - 12:08 pm Report abuse
7 Beef

I would normally report such rude, crude off topic comments but I can't stop giggling.

This is just one example of the government beliving it can simply make a sweeping policy to fix one problem with no thought whatsoever to the consequences in other areas.

If I were an Argentine home owner I would simply chyoose not to move home until after CFK and her dollar clamp are gone. It would make no logical sense to do otherwise. Imagine how much of your wealth you would lose to inflation if you sold now and were unble to buy immediately.

Wait for a new law making it compulsory to sell your home after 5 years of ownership!!
16 briton (#) Nov 07th, 2012 - 01:42 pm Report abuse
we doubt anyone is totaly happy with their goverments..
17 Usurping Pirate (#) Nov 07th, 2012 - 06:40 pm Report abuse
Can Murkypress please tell us what is happening with real estate in Montevideo and Punta Del Este ? I imagine they are becoming a safe haven for investors bailing out across the 'Plate ?
18 Zaphod102 (#) Nov 08th, 2012 - 01:08 pm Report abuse
I know an architect in Buenos Aires who says he's never been busier! He's been getting almost daily calls from people wanting to build property as an investment since they can no longer save in dollars.
19 British_Kirchnerist (#) Nov 09th, 2012 - 11:29 am Report abuse
Don't know about Argentina, but here in Britain estate agents are famously the one group we trust less than politicians and lawyers =)

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