Argentina Real Estate Market: Cash is King as Mortgage Market Struggles to Revive
In Argentina, President Javier Milei is looking to revitalize the country's economy, but the real estate market remains stagnant. With less than 1% of GDP allocated to mortgages, buyers are forced to bring bags of cash to purchase homes, locking out most of the population.
Despite new mortgage launches from local banks, high inflation rates and economic uncertainty continue to deter buyers from taking on long-term credit. Inflation, currently over 270% annually, remains a major concern for Argentines who prefer to keep their savings in dollars rather than trust banks.
Limited access to credit has forced creative solutions, such as using credit cards and dollar savings to purchase property. While the government sees the return of mortgage products as a positive sign of support for pro-market reforms, the market still faces challenges.
Banks have received initial queries for mortgage loans but face difficulties in finalizing deals due to the population's fear of inflation and economic instability. Despite efforts to revitalize the mortgage market, the future remains uncertain.
In conclusion, the Argentine real estate market continues to struggle as buyers opt for cash purchases over mortgages. High inflation rates, economic uncertainty, and a history of defaults and financial crises have created a lack of trust in banks and credit systems. For potential homebuyers, this means limited access to credit and the need for creative solutions to enter the property market.