Overview

• INDEC reported the construction cost index for Greater Buenos Aires rose 1.6% in July, 10.9% year to date and 31% year over year, staying below the 1.9% monthly inflation rate.
• Sector activity gained 0.9% month on month in June and 13.9% year over year, yet leading indicators remain mixed with input demand still 20.2% below November 2023 and net expectations turning negative.
• Empiria said construction costs measured in dollars fell 4% in July and projected another 5% drop in August, implying an 11% decline for the second half versus June if confirmed.
• CEDU estimates building costs jumped about 107% over the last 18 months, compressing margins and discouraging new launches, while developers say mortgages for projects under construction remain largely unavailable.
• The price gap hit a record in Buenos Aires City with units under construction priced about 33.5% above used homes, rental yields hover near 5.86% gross, and recent data show apartments outpacing houses in markets such as Mendoza.