Argentina construction slows as credit dries and public funding cuts

Construction firms in Argentina report a uneven recovery marked by a sharp decline in nationally funded public works. Architect Eliana Epelbaum of the Cámara Misionera de Empresas Constructoras and Afines said provincial authorities are absorbing former national contracts to continue priority projects, such as housing units in Posadas, while the sector’s slowdown ripples through related industries including sawmills, sand pits and metalworking.

Industry leaders cite a severe credit shortage as the primary obstacle. Lucas Péndola of the Cámara de Corredores Inmobiliarios noted a 48% year‑on‑year drop in property sales and a 38% fall in rentals, despite recent government tax reforms, because mortgage financing remains scarce. Gerardo Antonio Fernández, president of the Confederación de Pymes Constructoras, added that the sector saw only a modest 4% monthly growth after two months of decline and remains unstable. He warned that rising dollar‑linked material costs and limited access to foreign currency further deter new projects, leaving thousands of families unable to secure housing.