Real estate investments are taking place in an increasingly global and interconnected world. Regional and global conditions influence local realities. In this context, analyzing the current situation and potential future implications is essential for all stakeholders in the real estate sector.
On Tuesday, June 5, 2018, the School of Architecture at Universidad ORT Uruguay a seminar titled “The International Real Estate Market,” featuring international experts.
The opening remarks were delivered by Daniel Porcaro, academic coordinator of the Specialization Diploma in Real Estate Business, who analyzed the overall state of the real estate industry and, in particular, the current situation in the major markets.
What's happening in the region?
Architect José Rozados, president of Reporte Inmobiliario—Argentina’s leading real estate business portal—discussed the current state of the real estate industry in Argentina.
According to what he said, this is a time of great uncertainty, during which it is important to take some time to assess what is happening. Specifically, he explained that Argentina “had started to make progress,” but then reached a point that “sent them back to square one”: “We’re about a year and a half behind where we were.”
Due to rising property prices, exchange rates, and bank interest rates, he predicted that demand and mortgage lending would decline. He also predicted that interest rates would continue to rise.
However, he noted that there is no certainty that this is a “terminal” situation. There is hope that it will improve.
What is the situation in Uruguay?
“The investment landscape is less favorable than it was just a short while ago, but a new equilibrium has emerged that leads us to believe there are still opportunities in real estate,” said Alfonso Capurro, an economist and head of the Economics Department at CPA Ferrere. Together with Wilder Ananikian, president of the Uruguayan Real Estate Chamber, they spoke about the outlook for Uruguay.
According to Capurro, Uruguay is experiencing “the local manifestation of a global process that is becoming the new normal.” He also noted that we are witnessing a new cycle of dollar correction and that the currency’s volatility will continue, though at a more moderate pace than in April and May 2018.
However, Capurro admitted that when such fluctuations occur, “the market cools down.” Ananikian agreed that the Uruguayan real estate market has slowed down at present. Although they had expected 2018 to be a year of recovery, the president of the Uruguayan Real Estate Chamber indicated that there will likely be an improvement in the second half of the year.
However, he noted that real estate professionals have it in their DNA to “always see the glass as half full.” “If we thought a deal had fallen through, we wouldn’t be able to survive. We always try to shore it up and get it back on track. That’s our job,” he concluded.
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