The field market is booming and a new variable is emerging due to the Ukraine war

The field market is booming and a new variable is emerging due to the Ukraine war

According to the Argentine Chamber of Rural Real Estate (CAIR), the sector reactivated in April last year, and among its reasons is that the country did not default; The interest of foreign investors in the context of armed conflict

Rural real estate activity has improved
Rural real estate activity has improved

In a complex international scenario, which has led the United States to annual inflation of more than 8% and halted traditional investments in dollars, and While Argentina managed to avoid default with the International Monetary Fund (IMF), The local rural real estate sector is in rapid recovery.

The data are provided in the last document that was published Argentine Rural Real Estate Chamber (CAIR), Where rural real estate market activity is reflected across the country, under the Rural Real Estate Market Activity Index (InCAIR). The other two reasons they mentioned in the study were reversals The sharp rise in livestock and the very solid cost of rural rent, compared to the previous campaign, “with an increase of one to two quintals per hectare in different districts.”

For the subject, in April of last year, InCAIR was 31.89 points, reflecting “a significant increase of 39% over the previous month”. Although mentioned “Activity is still 7.4% lower than the average of the last five years during the same period.

The The base of InCAIR is 97.5 points, which historically corresponds to its maximum peak, which was recorded in September 2011. This database is compiled based on the results of monthly activity surveys conducted across partners across the country, the number of ads for sale or rental fields in the national mainstream graphic media, and the rural operations performed by advertisers on their website. Investors’ searches and consultations during the period under review also focused on the number of commercial ads on its website and in the country’s main squares.

for that Jose Maria Bauza The new president of the unit, is now a global and national scenario that is very different from last year and which has results, “The owner of the field will think twice about reducing sales ambitions.” Explained that This increased activity has not yet been translated or is a correlation between real and certain operations.

“The large supply in the field market is limited and there is a growing interest. “Even though demand is a global stimulus for the depreciation of the dollar, where its purchase price will be 8% lower, it will lead to more potential investors to buy margins,” he said.

Regarding the local situation, he stressed The signing with the International Monetary Fund removed “this ghost of default” and benefited not only the agricultural sector, but also all the economic activities of the country: “If we do not sink into brutal instability. He did not break his leg on the chair. “

In dialogue LA NACION, Juan José Madero, Director of LJ Ramos Campos Division, Emphasized that while this current scenario is a classic evolution of activity after the summer seasonal fall that has always existed, today There is a new point that you need to pay attention to.

“Questions arose from the investor, who was not there last year. In 2021, it was rare to have an investment ticket of more than $ 3 million and it was impossible to find $ 5 million. Eight-digit operations are now being heard. This is a thermometer where, in the midst of Russia’s invasion of Ukraine, this new macro investor wants to anticipate and see that the price of land in Argentina lags behind what is happening in the world. “More and more food is needed and the supply of fertile land is limited,” he said.

LJ Ramos
LJ Ramos’s campus director, Juan José Madereau, asked questions from an outside investor last year: “In 2021, an investment ticket worth more than $ 3 million was rare and it was impossible to find one. $ 5 million. Eight Operations are heard now “

“Our main area, the corn belt in the United States and the lands of Ukraine, belongs to the cream of the world, that is, 3.5% of the ice-free lands, and in addition we are against the rest. “Season,” he added.

In this context, he pointed out that the agreement with the fund allowed to “at least” establish the axis to which the country should continue. “Investors are very sensitive to these issues And the fact that the country has to comply with economic behavior has forced Argentina to look again as an investment and now it is starting to want to play the game. We are at the moment of floor values ​​when the investor bets that the values ​​will not fall anyway And the bet is on long-term revaluation, because when a person enters the land business, it is a condition that it will be long-term, almost a generation, “he said.

As he noted, the price of land in Argentina is delayed compared to other producing countries. This is about $ 14,000 to $ 15,000 per hectare in the main agricultural area. Meanwhile, in Illinois, in the North American corn belt, the cost per acre is about $ 40,000.

“War struck the board And this world scenario attracts the value of land all over the world; Despite this, The price difference per hectare in the northern country with this region has never been so great. Fields Uruguay and Paraguay, where there is a “normal” policy, have also grown steadily. But here we still follow the policy of this government, which always has a hand in the sector, which leads to even legal uncertainty. The main problem is the exchange trap, which has been coming for years and hindering operations. Persuaded.

Finally, Madeiro provided us with details about the initial variable that also led to the armed conflict. In this regard, he explained that in Europe, for investors, beyond the legal security of their business, there is now personal security.

“The opportunity for international investors to arrive in the country is starting to make a splash, albeit at an early stage, with the acquisition of territory to settle and run their global business from here. This variable did not exist before the war. Although it is somewhat embryonic, this new component has emerged that can mobilize a foreign figure to enter this safe region. Counted.

Source: La Nacion

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