Projections of the Realty Convention - Salón del Mercado Inmobiliario

During the 11th and 12th of July, 2007, this years realty convention of the Salón del Mercado Inmobiliario took place in La Rural, an event attended by national and international specialists of the real estate sector. Among the confrence's expositions was the featured event held by the Director of the Grupo Irsa (Irsa Group), Alejandro Elsztain, who spoke about a variety of interesting facts concerning the future of the Real Estate Market.

Alejandro Elsztain is the leader of the Grupo Irsa, the only real estate company offering their stock on stock markets in Buenos Aires and New York. He predicted a very bright future for real estate trade, "a long term story in Argentina" immersed in a "super favorable international context, where the interest rates are really pushing the inversions to the not as developed economies."

The boom of the business of goods, the recent cancelation of debts of Latin American Countries, the increase in tourism, and the great awakening in Brazil have all been fundamental for the American companies to finally arrive in the countries of the region, causing the yearned for return of business opportunities and "long term Real Estate Projects."

Because, Elsztain explained, "there are not many places like this and there is a large demand, which is why the price of our prime materials is rizing, the energetic effect and our principal products are worth gold." On the other hand, it would be positive for the external debts situation, because of which "various countries are canceling them, and today they have risk qualifications that make us see the countries interest rates like in Argentina, that were unpublished in the past." Another crucial factor to consider is Brazil. Here, although the undisputed winner in the foreign investments area has to be the brother country, they must have generated a movement of the "machine of the region" that unleashed a "fenomenal flow of investments in counties like Argentina, Chile, and Peru" of sectors that "believe that the region is going to keep developing."

In the same way, the exposition showed that the qualification of positive rise that the nation had before 2001, is starting to be recovered when the facts show "how the capital and the bonds permits the growth."

On an internal level, the terrain of the credist, the latest statistics show a certain recuperation of the loans in respect of the PBI (Producto Bruto Interno - Internal Gross Product) that allows us to observe how "today the banks offer loans, low interest, and after June, the loans curve is going to accelerate much more."

Diagnoses of this magnitude have lead the executives of Irsa to double their bets on the national real estate market when few have animated themseves to do so. This way they have modernized the shopping centers in the City of Buenos Aires and Cordoba, and have acquired buildings to develop premium offices, and they have also bought land reserves situated in strategical locations. It is also worth mentioning that the invaluable support of a leading foreign company in the development of massive housing in Latin America, that allows them to start a project of a total of 110.000 meters located in Vicente Lopez. The daring conduct caused, starting of in 2001 with a gain of 224 millions, by the year 2006 they had reached over 577 millions.

The results of the this real estate group proves the enormous advances that the real estate market in Buenos Aires and Argentina is taking, and new favorable winds are coming our way.

None the less, there are still important battle fields that can change their destiny. Among them, the consumer capacity of the middle layers, the efficient management of the services and the equal access to the loans. At the same time as the value of the square meter of real estate property rises at an unusual, the investment and demand of properties by foreigners, the breach of the average salaries of the population has gone up. Just like the expert affirms, there is a large road to travel, and if "the salaries recover themselves but not in respect to the square meter," and "the levels of Argentina's credits are still among the lowest in the World."

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On Tuesday, August 21, at 7 pm, the "Segunda Conferencia de Real Estate" (Second Real Estate Conference) will take place in the Coferace room of the Circulo Italiano (Italian Circle - Libertad 1264). The event, backed by the Club Europeo (European Club) and the division of the Corporate Finance of Deloitte Argentina, will be about an "Examination of the conjuncture and perspectives - Real Estate Project Financing." The exhibitors will speak about the Real Estate investments of great importance and their opposite; the middle class' lack of access to the living quarters. There will be suggested solutions to this problem, and a overlook of the market, the markets access to project capital, real estate businesses and investments from a foreign origin.

The invitation is for professionals of the Real Estate industry, and to the general public. Those interested in attending the event can contact the European Club at tel. 4311 9896, or write to; while those who are too occupied to attend can follow the development through the coverage of