Buenos Aires

According to newspaper today two of the main causes that have led to the real estate collapse is the fear caused by the economic crisis, and apocalyptic political speeches – how de Nestor Kirchner, former Argentine President who continues to operate politically. The Government has done its part in adding uncertainty to the economic context, stating that if you get defeated in legislative elections, what comes to the country is not anything other than chaos. Numbers of the real estate market in most of the major urban centres of the country speak for themselves. According to a report by del Colegio de Escribanos Buenos Aires, movement of buying and selling real estate in the province of Buenos Aires fell 49 per cent during the first quarter of this year. In the Federal Capital, real estate sales plummeted 53.5% (although according to specialists in the sector, in March began to observe a certain recovery), reaching its lowest level since the month of February 2002. In the city of Mar del Plata, the fall in sales was 41.7 per cent at the end of the first quarter of the year. Which can be strange in the situation of the real estate market, is that while demand is retracted, the prices do not show a behavior toward the baja. This situation has an explanation and links to the context: the great uncertainty that exists in the local economy, sell a property without a target clear to money derived from that operation, appears as a highly risky bet that are only willing to accept those who are in a situation of need. Offers a clear reflection of what happens in the real estate sector the construction sector which, according to data from the National Institute of statistics and censuses (Indec), in the month of March returned to contract by 2.4% in its seasonally adjusted indicator, keeping expectations down for the next few months.