Buenos Aires – The Argentine real estate market in the City of Buenos Aires (CABA) is experiencing a slowdown at the start of 2026, with a 6.1% decrease in property sales compared to the same period last year, according to data released by the College of Notaries of the City of Buenos Aires. While the total transaction volume increased in peso terms, the decline in the number of sales, coupled with a drop in mortgage transactions, signals a cooling trend in a market that had previously shown sustained growth. This shift in the CABA property market reflects broader economic conditions and changes in credit availability.
In January, a total of 3,423 property sales were recorded, a decrease from the previous year. However, the overall monetary value of these transactions reached $590.428 million, representing a 36.3% increase compared to January 2025. The average price per property was $172,488,567, equivalent to approximately $117,128 USD based on the official exchange rate. This increase in average price, despite fewer transactions, suggests a continued demand for property, albeit at higher values. The market is navigating a complex landscape of economic factors, including inflation and currency fluctuations.
Decline in Mortgage Transactions
A significant factor contributing to the overall slowdown is the decrease in mortgage-backed purchases. In January, 765 transactions were completed using mortgages, a 19% drop compared to the same period in 2025. This represents 22% of all property sales, indicating a reduced reliance on credit financing. According to Magdalena Tato, president of the College of Notaries, this decline is equivalent to approximately 200 fewer transactions financed through mortgages. This trend aligns with reports of a broader contraction in credit availability, impacting the ability of potential buyers to secure financing.
Despite the decrease in overall mortgage transactions, First Capital Group reported a 2.1% monthly and 152.1% annual growth in real terms for mortgage credit. This suggests that while credit is becoming more expensive or harder to obtain, there is still an underlying demand for financing, and lenders are responding with increased offerings, albeit at potentially less accessible terms. The discrepancy between the overall decline in mortgage transactions and the reported credit growth warrants further investigation.
Economic Context and Market Dynamics
The slowdown in property sales comes after months of sustained growth in the CABA real estate market. Tato noted that January is typically a slower month for real estate activity due to seasonal factors. However, the 6% year-on-year decline, and the more pronounced 19% drop in mortgage transactions, indicate a more significant shift in market dynamics. The 2025 figures saw mortgage levels exceeding 1,000 per month, peaking at 1,500, making the current comparison particularly stark.
The increase in the total transaction value, despite fewer sales, points to a concentration of higher-value properties being sold. This could be attributed to investors seeking safe-haven assets in a climate of economic uncertainty, or a shift in demand towards more luxurious properties. The market is too being influenced by the ongoing debate surrounding reconfigurations in the rental market, which may be driving some investors towards property purchases.
Impact of Credit Availability
The decline in mortgage transactions is directly linked to the availability of credit. Several reports indicate a tightening of lending conditions, making it more difficult for potential buyers to qualify for mortgages. This is compounded by rising interest rates and economic uncertainty, which further discourage borrowing. The reduced access to credit is particularly impacting first-time homebuyers and those with limited financial resources. The collapse in housing sales is directly attributed to this fall in credit.
The concentration of mortgage lending within a single bank, as reported by Clarín, also raises concerns about market competition and potential risks. This lack of diversification could make the market more vulnerable to changes in that bank’s lending policies or financial performance. Further analysis is needed to determine the extent of this concentration and its potential impact on the broader real estate market.
Looking Ahead
The CABA real estate market faces a period of adjustment as it navigates the challenges of reduced credit availability and economic uncertainty. The next key indicator to watch will be the February sales figures, which will provide a clearer picture of whether the January slowdown was a temporary blip or the start of a more prolonged trend. The College of Notaries is expected to release these figures in March, offering further insights into the market’s performance. The evolution of mortgage rates and credit conditions will also be crucial in determining the future trajectory of property sales in Buenos Aires.
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