For several years now, a type of property it has become one of teh most popular options For Argentinians looking for a home or source of income: The PH (Horizontal Property). Famous in the physiognomy of Buenos AiresI’m the perfect combination for those who want outdoor spaces and, at the same time, they must adjust their budgetsince this type of property, unlike apartments, they don’t pay the expenses or, if they do, they are very low.
In the market undergoing reorganization after real estate values suffered a post-pandemic decline in value, The PHs are the ones that have best resisted this downward trend. This is because this the type is in great demand and, when a unit appears available, whether for rent or purchase, gets busy quickly.
Similar to apartments in price and size, but with some characteristics of houses, these types of properties continue to be the most sought after on the market: in the city of Buenos Aires, An ad with these characteristics receives 86% more demand compared to the average notice of an apartment and is where the shortage of this type has grown the most compared to the same period of 2023, according to data provided by Zonaprop.
The current context shows a real estate market with signs of recovery, mainly in the city of Buenos Aires where The value of the average square meter reached $2,321 In November, an ad of the most popular types takes three to four months to sell.These reactivation data are reflected in the revealed scriptures of the month of November by the cityS College of Notaries: In total 5987 were signeda number representing a 32% more than the same month in 2023 and a growth of 16% compared to the previous month. But perhaps the most critically important fact is also that Nearly 1,000 mortgage deeds were signednumber it highlights the impact of returning UVA credits in the market.
“With regards to mortgage loans, phs are one of the products that have some difficulty in obtaining full credit”warns Daniel Obetko, manager of Interwin. “If the banks renounce up to 70% of the deed value of the property, and obviously this figure is also linked to the solvency of the person taking out the mortgage, In the case of PHs, there is frequently enough a superficial difference between what the writing says and what is real.because the surface area has increased. Therefore, in most cases, The banks will evaluate and value the square meters shown in the deed and not the totals”, continues on this topic.
Even with this difficulty, PHs continue to be one of the most sought-after properties at the moment.Diego Migliorisi, of the real estate company of the same name, also explains it: “They are furious because they represent a lifestyle. The customer who wants this type of property will look for a certain privacy, open spaces and elegant environments. There are also those who look for them to recycle again”.
“It’s a product that is halfway between an apartment and a houseand in many cases they have patios or terraces that allow for a much appreciated expansion, but they also have a richer spatiality than an apartment, with different heights or spaces with other characteristics”, underlines Obetko.
Of course, these houses They are usually four to five buildings decades oldwich has advantages and challenges. Among the advantages, the one that stands out from the others is the no payment of expenses. «To give you an idea, in a three-room terraced house you can save up to almost 200 thousand dollars in expenses», underlines Migliorisi.
Although the negatives are that buyers should take this into account The maintenance of the units is wholly self-reliant and depends on the ownerespecially in older properties. Furthermore, the urban environment can in some cases limit natural lighting, a crucial factor to evaluate before purchasing.
«The big disadvantage is that these properties do not have the services of a building, such as safety and comfort», explains Migliorisi, adding: «The conservation of the building is not organic».
Del more than 100,000 properties available in the city of buenos Aires,7567 son PHaccording to Zipcode’s November report. This type of property is on the rise distinguishing itself above all in Palermowhere supply is scarce and values exceed those of a department,arriving between US$ 2500 and 3000 per m². In Palermo Soho there are less than 100 PH for sale, with record prices.
The attractiveness of PHs lies in their location and to be an choice for those who don’t want apartments or can afford a house. Some, however, have constructions not declared in the plans, which makes their bank financing difficult, warns Darío Migliorisi.
According to Zonaprop, the neighborhoods with the greatest supply of PH for sale are:
Daniel Obetko points out that, when choosing a PHit is essential consider the status of other unitssince general maintenance depends on agreements between the owners.Also It is indeed critically important to evaluate present and future natural light, taking into account the urban environment and building potential of the area, which could influence the lighting.
many PHs need renovationswhat it could be an advantage if the changes do not require approval from neighbors. The most popular are those with their own patio and airspace, which allow for extensions such as terraces or additional construction, increasing their attractiveness and functionality.
What are the key features that make PH properties appealing to buyers in Buenos Aires?
Interview: Exploring the Rise of PH Properties in Buenos Aires
Time.news Editor (TNE): Welcome to Time.news. Today, we are diving into a engaging trend in the Buenos Aires real estate market—the rising popularity of PH, or Horizontal Properties. To shed light on this phenomenon, we have Daniel Obetko, a manager at Interwin real estate and an expert in the field. Daniel, thank you for joining us!
Daniel Obetko (DO): Thank you for having me! it’s a pleasure to discuss this exciting topic.
TNE: So, Daniel, let’s start with the basics. What exactly is a PH, and why do you think it has become such a hot commodity for Argentinians?
DO: A PH, or Horizontal Property, is essentially a type of property that offers the characteristics of both apartments and houses. They’re often similar in price and size to apartments but provide some distinct advantages—primarily outdoor spaces and a sense of community. Given the economic situation, many people are looking for budget-friendly options that also meet thier lifestyle needs, and PHs fit that bill perfectly.
TNE: It sounds like they offer the best of both worlds! You mentioned that they have resisted the downward trend in real estate prices post-pandemic. Can you elaborate on this?
DO: Absolutely. During the pandemic, real estate values dropped considerably, but PHs have demonstrated remarkable resilience. They are in high demand, and when one becomes available, it usually doesn’t last long on the market. As a notable example, advertisements for PHs receive 86% more interest compared to regular apartments, indicating that people are actively searching for these properties.
TNE: That’s notable! It also seems that there’s an ongoing recovery in the Buenos Aires real estate market overall. Can you tell us about the statistics you’ve seen recently?
DO: Yes, definitely. The average value of real estate per square metre in Buenos Aires reached $2,321 in November. There were also around 5,987 property deeds signed in November, which is a 32% increase compared to the same month last year. This recovery is even more notable considering nearly 1,000 mortgage deeds were signed, showing that financing options are making a comeback, particularly with the return of UVA credits.
TNE: That’s a important increase! However, you mentioned that PHs can present some challenges when it comes to securing mortgage loans.Can you explain that?
DO: Certainly. While PHs are in high demand, banks frequently enough struggle with appraising them accurately. The issue arises because the data in the deed may not always reflect the real surface area. banks typically evaluate the square meters as stated in the deed rather than the actual livable area, which can lead to complications in obtaining loans. This discrepancy can cause buyers to miss out on opportunities, even when the market is so competitive.
TNE: That sounds frustrating for potential buyers! Beyond the practical aspects, what would you say is driving the cultural appeal of PHs for many Argentinians?
DO: Great question! PHs represent more than just a housing option; they symbolize a lifestyle choice. People are drawn to the privacy, outdoor spaces, and elegant surroundings that phs offer. Many buyers love the idea of personalizing their spaces, often purchasing them with the intention of renovating or recycling them. This trend reflects a desire for a quality of life that larger urban apartments often can’t provide.
TNE: It seems PHs are more than just a financial decision—they truly resonate with a certain lifestyle. what advice would you give to someone considering investing in a PH right now?
DO: I would advise potential buyers to conduct thorough research and be ready to act quickly, as these properties do not last long on the market. Understanding the nuances of your financing options is also crucial. Consulting with real estate experts can help navigate these challenges and ensure you make a well-informed decision.
TNE: Thank you, Daniel. Your insights into the world of PHs have been enlightening. It’s clear that this housing option is much more than just a real estate trend; it’s a reflection of changing lifestyles and economic conditions in Argentina. We appreciate your time today!
DO: Thank you! I enjoyed speaking with you about the exciting developments in our real estate market.