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.
The world's most expensive four-storey palatial house, in London's plush neighborhood has gone on the market at a staggering 100 million pounds. One Cornwall Terrace is a Grade 1 listed mansion overlooking Regent's Park in London.
Argentina tightened the ‘dollar clamp’ a further notch by including mortgage credits, which means people wanting to become home owners will not have access to the US currency.
The Argentine economy is expected to grow 1% this year with manufacturing activity virtually stagnant, according to the head of a leading economic consultancy agency in Buenos Aires who nevertheless admits that the government stats “will probably show a better performance”.
A team of experts working for the administration of President Dilma Rousseff has warned of the existence of a “real estate burble” in Brazil with the value of houses soaring 165% in Rio do Janeiro and 132% in Sao Paulo in the last four years.
Real estate sales in Buenos Aires City dropped for the eighth month running in July and 27.6% over a year ago because of the US dollar clamp according to the monthly evolution index of sales documents from the Notaries College of the Argentine capital.
The Argentine real estate market has witnessed stunning growth over the last decade but growth of the sector appears to have come to an abrupt and dramatic end in the seven months of this year.
The Uruguayan construction industry faces tough years ahead because of the international crisis and its effects on neighbouring Argentina, forecasted economist Jorge Caumont who is also an advisor of several real estate agents.
Argentine construction activity in Argentina during June dropped for the third consecutive month compared to a year ago. The drop was 1.5% according to the Construction Activity Synthetic Index (ISAC) from the country’s stats office, Indec.
Property prices in 70 Chinese cities rose slightly in June, compared to May, after eight months of decline. Home prices rose 0.3% in Beijing and 0.2% in Shanghai compared to the previous month, official data showed.