New Business Friendly Government Inspires Confidence in Argentina’s Property Market

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New Business Friendly Government Inspires Confidence in Argentina’s Property Market

May 26, 2017

 Are you planning to sell property in Argentina fast? Then you might be interested in this article. Read on.

Argentina has changed – at least the politics of Argentina have changed. The country elected the pro-business friendly politician Mauricio Macri as their new President in 2016. Since then, there has been a new hope, a new sense of urgency in the nation’s economy.

 The country desperately wanted a change after 12 years of rule of the Kirchners, whose policies discouraged foreign investment and generally led to the diminution of the national economy.

Argentina was always a rich country, or at least, would have been a rich country if not for the self-destructive economic policies of some of its politicians.  The country has witnessed one financial crisis after another, none more hurtful than the one in the early 2000s, after the government defaulted on its payments to international lenders.

Some of the economic policies of Néstor Kirchner and his wife Cristina Fernández really made it hard for overseas buyers to enter the Argentinean property market.

Back then the government introduced several restrictions on ownership of foreign currency to prop up the Argentine peso. But what this did was to create a dual exchange rate – one decided by the market and another – an unofficial one - decided by the market.

No surprise then that nobody wanted to buy property in Argentina online back in those days. “Many [foreigners] started fleeing when the business environment became unmanageable,” explains Adriana Massa of Sotheby’s International Realty, in an interview with the Financial Times.

 The property market suffered as a consequence. There was no growth in the number of property transactions for much of the past decade. The property market contracted at a time when neighbouring nations such as Brazil and Chile were doing spectacularly well. It was hard for anyone in Argentina to justify their government’s policies.

So the election of Macri as President was a breath of fresh air.  The international community was full of appreciation for some of Macri’s reforms such as lifting the stringent exchange controls and devaluing the currency. Macri has made a number of bold moves that should make buying property easier.

The new President has also ended Argentina’s fifteen-year debt blockade. There was a dispute with the US courts over Argentina’s debt rescheduling plans that has been running for many years. President Macri has resolved the dispute and brought an end to the case. This has certainly made a number of foreign investors enthusiastic about Argentina again.

Iuri Izrastzoff, head of Izrastzoff Agentes Inmobiliarios, says, “It’s the first time in six years that buyers and sellers can transfer money from an Argentine bank account abroad, and vice versa.” His sentiments are echoed by many investors.

There is a feeling that Argentina is open for business again. As Alejandra Bugna a real estate lawyer at Baker & McKenzie emphasises, “For the first time in years, homeowners want to exchange properties instead of sitting on their assets.”