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No need for a stimulus speech here. Residential and commercial construction continues to be one of the strongest sectors of economic activity in Argentina, according to a new survey conducted by the Universidad Argentina de la Empresa (UADE). The UADE measured economic activity over the first six months of 2011 and found new construction in Argentina rose 10.5% in the first half of 2011 compared to the same period in 2010.
In terms of construction materials, cement sales in Argentina rose 15.6% in the first half of 2011 while sales of rebar climbed 10.8%. The survey projects construction activity staying on pace for the remainder of the year and closing out 2011 at record levels. The data released yesterday coincide with the Build Index (Indice Constuya) which measures the sale of building materials to private construction projects.
The president of the Argentina Chamber of Construction, Carlos Wagner, says real estate in Argentina has become a preferred currency with private savings flowing into new projects, new apartments and improvements to existing buildings. “While some sectors are down 2 or 3 points, construction activity is actually up thanks to rising demand and investors seeking a safe haven for their investment,” said Wagner.
And the flip side of the supply/demand equation refutes any speculation about potential oversupply in the Argentina real estate market. The same UADE study found the supply of available housing fell 21% in the first half of 2011 compared to 2010, while the supply of available rentals dropped 28.9%.
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