Real estate industry are relatively optimistic in Argentina

Executives asked by GRI indicate that their companies are investing or waiting to make decisions.

March 20, 2019Real Estate

Even in the face of the bumps of the Argentine economy, executives active in the real estate industry in the country remain considerably optimistic. According to the GRI Barometer survey, 46.15% say that their companies are investing in and/or expanding business locally, and 48.72% say they chose to observe to be able to make the right decisions. Only 5.13% indicate divestments.

In 2018, the same survey, also conducted in the first half of the year, showed greater optimism. In all, 73.68% reported that their companies were investing. However, a few weeks after the survey, there was an intense change in the economic scenario, with rising interest rates, currency devaluations, and the announcement that the country would resort to the International Monetary Fund (IMF).

It is no surprise, now, that the group of those who believe in economic growth in Argentina in the near future was smaller than in 2018: 55.00%, down from 76.55%, while the share of those who believe in performance similar to that posted so far rose to 40.00%, up from 22.45%. 

Favorite segments

The GRI Barometer identified a sharp drop (of 31 percentage points) also in the expectation of results for the companies compared to 2018. Still, nearly half of real estate leaders who were listened to expect good or excellent figures for their business in the next 12 months. In this scenario, real estate segments perceived as offering the greatest opportunities are offices, warehouses, and residential.

Looking at the Argentine real estate market as a whole, the executives are more skeptical than with regard to the companies they run: 52.50% think that the industry’s performance locally tends to be regular in the year ahead, and no more than 30% expect a good or excellent performance (compared to 86.49% in 2018).

The GRI Barometer periodically captures the mood of the real estate market leaders in various parts of the world. For this survey, the GRI Club listened to 256 players working in Latin America during February, 41 specifically active in Argentina. Last year, GRI Barometer data were the basis for a GRI Magazine story that pictured a growth expectation for the sector, partially frustrated by the economic complications that affected Argentina.

See details of the GRI Club Real Estate Argentina Barometer

Check out the GRI Barometer results for others Latin American countries surveyed in 2019:

Latin America GRI 2019

Real estate industry prospects, business and investment opportunities and trends that are likely to drive the market in Latin America will be under debate at Latin America GRI 2019, which will be held in New York on March 27 and 28. Check out the program and find out how to participate alongside the main names of the real estate industry in the region.