In November 2023, the real estate market in Buenos Aires displayed a “slight recovery,” marking the best November since 2018, with 4,068 property operations. Despite a 10% decrease from the previous month, the year saw a positive trend, maintaining around 4,000 monthly operations since August. The market’s resilience is evident in the 20.7% increase in property purchase deeds compared to the previous year. This growth trend has persisted for 19 consecutive months, indicating a reassuring line of recovery, although not a boom.
December’s results are awaited for a comprehensive summary of the entire year. The positive momentum is particularly noteworthy given the uncertainties associated with a change of government in 2023. However, the market’s resilience is attributed to the unique seasonal activity, especially during the August-October quarter, which witnessed increased operations.
In terms of taxes for property purchases, the Buenos Aires legislature updated the 2024 rate table, affecting the Stamp Tax. The tax exemption for those acquiring a property for single-family housing and permanent occupancy increased from $10,950,000 in 2023 to $24,889,350 in 2024. However, this adjustment has raised concerns, as it may pose challenges for housing accessibility, particularly for historically lower tax amounts. Notably, the tax on stamps for a single home could cover US$110,000 historically, but devaluation has altered this landscape.
The impact of the peso’s devaluation is evident when comparing property purchases made at the beginning of the year versus later in the year. For example, a property purchased for US$100,000 in January incurred a tax of $646,625, while the same property purchased later in the year would result in a tax of $2,502,500. The buyer’s tax burden would increase significantly, nearly four times more, emphasizing the evolving financial landscape for property buyers in Buenos Aires. The tax scenario could change, albeit not significantly, if the purchase occurs in the first days of the following year, assuming the exchange rate remains stable.
