Argentina construction cost surge strains housing projects

Construction costs in Argentina have risen sharply, reshaping the real‑estate market. Brickell Developers reported a 138% increase in dollar‑denominated building costs since October 2023, while the share of mortgage credit in property sales fell from 20% to 11%. To stay viable, the developer is buying land before price appreciation, using imported industrialized construction systems and offering up to 60 interest‑free installments to buyers.

In Mendoza, the Centre of Engineers recorded a 3.29% month‑on‑month rise in total construction costs for July, driven by a 4.16% jump in material prices and a 2.36% increase in labour costs. Materials have risen about 30% year‑on‑year, pushing the cost of a standard 60‑m² social housing unit to roughly 90 million pesos, or about 1.514 million pesos per square metre for a basic home and 1.969 million for higher‑quality finishes. The dollar‑denominated cost of construction has also climbed about 12% annually, eroding the purchasing power of local savers.