Argentina as well as other Latam countries are experiencing increase of prices of Real Estate.
The explanation in the case of Argentina is a combination of prices imbalances (the exchange rate is an unrealistic over-valuation of the peso) which is the characteristic of this rich country in the last five decades. The cyclical peso overvalue and drastic devaluation afterwards in a typical ten years period. The uncertainty of the economic measures that will be taken after presidential elections in late October also contribute for investors to "secure" their cash holdings.
Several investors required my opinion with regards to the Real Estate Market in that country. A quick analysis shows that prices are close to the highest levels registered if we study a time series of prices for the last forty years.
It is time to sell in my opinion. The question then is what to do with the money obtained. The alternatives are various and it will be the subject of my future comments.
Going back to the Real Estate markets in the region, practically all the countries in it are experiencing price increases in the prices of the housing market. This is not a bubble in the magnitudes observed in Spain for example, but it should be observed carefully since price corrections will come sooner or later.
In coming comments we will cover this subject in more detail by country.
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