Overview
- Industry surveys published Saturday show building costs at about US$1,324 per m2 on total area and US$1,788 per m2 on sellable area, with monthly increases continuing into September.
- Analysts report dollar‑measured construction expenses roughly 59% above the 15‑year average, a shift driven by peso price rises that exceeded currency movement since 2024.
- The higher costs are eroding developer margins and prompting some firms to pause or cancel new projects because projected sales prices often cannot absorb rising input and labor bills.
- Developers are coping by offering direct financing plans, designing tighter product mixes, and cutting nonstructural finishes while preserving core structure, installations and waterproofing.
- Official data show the sector weakening: INDEC recorded a 4.4% year‑on‑year drop in construction activity in August and IERIC reported about 4,000 formal jobs lost in July, signaling local employment and project pipelines may stay under pressure.