Property prices in the Microcentro are up to 30% lower than before the pandemic
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The pandemic effect and the economic situation made their impact felt in the Buenos Aires Microcenter with the liberation of square meters of offices and commercial premises. The scenario also caused the sale values of used properties to decline and now in that area, two-room apartments are offered for USD 62,000 , a value that was unthinkable two years ago, when a property with similar characteristics cost 30 % more .
While a block building with approximately 50 units has a value ranging from 1 to 2 million dollars . “This situation is unique and an opportunity never before given when considering the benefits, accesses and amenities that the Microcenter has, which aims to renew itself, as happened at the end of the 20th century with Puerto Madero,” Matías Towers , director , told Infobae. Mudafy commercial.
“The decrease in values proposes an opportunity never before given with benefits, accesses and comforts that the Microcenter has that aims to renew itself” (Towers)
From the sector they argue that low property prices motivate citizens and investors to bet on the future of the area.
On the other hand, after months without activity and with the consolidation of the home office, many owners decided to sell their offices that are practically unoccupied .
Proof of this is that the real estate platform increased its offer by 27% in recent months in the neighborhoods of San Nicolás and the portion corresponding to Montserrat, key areas of the Microcentro. Towers explained: “This situation opened the doors to a new possibility that can give life back to the area that extends from Córdoba avenues to Belgrano and Callao and turn it into a neighborhood with a more residential profile, with a very different appearance from the pre pandemic ”.
This is a possibility not only seen by citizens and investors, who seek to remodel the old offices into new living spaces, but also by the administration led by Horacio Rodríguez Larreta , who presented a bill to make it come true, through the Sustainable Urban Development Fund (FoDUS) through instruments such as subsidized loans.
To do this, the Buenos Aires government works on the assembly of mortgage loans so that people can access to buy, own and allow the area to recover, according to what was published by Infobae .
The decrease would be flat
On the values, Germán Gómez Picasso , from Reporte Inmobiliario, commented: “It would give all the feeling that a price floor is being reached. To affirm this, we are going to have to see how they evolve in the first semester of 2022, but in recent quarters this trend has been seen in CABA and in the interior of the country ”.
“It would give the whole feeling that a price floor is being reached. To affirm this, we are going to have to see how they evolve in the first semester of 2022 ″ (Gómez Picasso)
In the Microcenter, according to the Real Estate Report, the value of the m2 in Monserrat is USD 1,445 and in San Nicolás it is USD 1,410, so the value of a two room ranges between USD 62,000 and USD 75,000, always in buildings in good condition and with some amenities.
Getting a 2-room unit for less than USD 50,000 in that area is an almost impossible task, unless the building is a hybrid that mixes offices with residential uses or is in very poor condition.
On the market and the values, Gómez Picasso, expanded: “If we do not experience another very strong devaluation, there is not much more room to lower a value of USD 1,410 per m2 for the Buenos Aires Center, it is a well-off price. In Greater Buenos Aires, unlike CABA, the drop in prices drove demand in the last part of this year, it is probable that the same thing will happen in CABA in the medium term ” .
According to specialists, the market is also very expectant if the Rent Law is repealed and if some type of mortgage credit is implemented, which is under analysis. Both measures must be dealt with in the National Congress.
Most offices
Currently, 63% of the properties located in the Microcenter correspond to offices: more than 600 office plots for each square kilometer , while the space for homes is 20% with less than 200 plots for each square kilometer .
Towers, expanded the following: “In this way the benefits that the area has could become the requirements of many when looking for their ideal home: interconnection (subway, bicycle lanes, Metrobús all within minutes), cultural, commercial and leisure offer services, and even proximity to the great universities of the city ”.
Also, they clarify from the sector, these could be the requirements of tourists when they look for accommodation when visiting Buenos Aires , thus becoming an opportunity for investors, compared to units at historically downward prices, which could be rented temporarily in dollars.
“We believe that the Puerto Madero experience could be replicated, an area that managed to modernize, revalue and position itself as one of the best places in the city to live and stroll,” concluded Towers.
