Overview
- Industry data show dollar‑measured construction costs up about 120% over the past 20 months, with Zonaprop reporting a 4.7% monthly rise in November and roughly 105% since the October 2023 election.
- BBVA reports the construction cost index has outpaced sale prices per square meter, neutralizing the Tobin Q incentive to start new projects and prompting adjustments to pricing, phasing and contract schemes.
- Resale activity has strengthened in gated communities as finished homes are offered below replacement cost, with brokers citing Nordelta listings from about US$1.1 million to US$1.85 million depending on the neighborhood.
- INDEC’s December index rose 1.4% in pesos, driven by materials (+1.6%), labor (+1.3%) and general expenses (+1.3%), while recent UOCRA wage agreements have added to labor costs.
- Import liberalization has had limited effect on total costs—estimated near a 5% influence—while developers describe wide cost ranges from roughly US$1,500 to above US$4,000 per m² and timelines of 14–24 months with frequent overruns.