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Construction Costs in argentina: A Shifting Landscape in May 2025
In May 2025,the Argentine construction sector is experiencing a notable shift in pricing dynamics.While some industry professionals, like Mali Vázquez, executive director of the Urban Developer Business Chamber (CEDU), highlight the availability of competitively priced materials, ranging from panelized systems to industrialized technologies, others express skepticism about the potential for significant cost reductions through imports. The argument is that readily available domestic materials limit the impact of foreign sourcing on the final price.
In this context, experts consulted by “La nación” indicate that the cost of building a basic home currently starts around US$1400 per square meter, plus VAT (totaling approximately US$1547). For a slightly more upscale residence,this figure can climb to US$1500 per square meter,plus VAT (US$1657.5). Consequently, a modest 100-square-meter dwelling could cost in the vicinity of US$160,225.Moving beyond the most economical options, a standard square meter of construction is estimated at US$1700 plus VAT (US$1878.5). For those seeking higher-end finishes and features, the price can escalate to US$2000 per square meter, plus VAT (US$2210). This translates to a 100-square-meter home costing approximately US$187,850 for a standard build, and up to US$221,000 for a more premium property.A significant factor contributing to this pricing trend is the relative stability of the US dollar, or even its recent decline, in Argentina. This situation necessitates a greater number of dollars to construct the same amount of space. For over two years, construction costs, when measured in US dollars, had largely mirrored the fluctuations of peso inflation and ongoing devaluations. However,with the dollar remaining largely static in recent months,construction expenses have reached unprecedented levels.
Industry analysts point out a stark reality: “The equation is dramatic: 14 consecutive months with the dollar within the US$1200-US$1300 range; meanwhile, during the same period, inflation reached 68% in pesos for building a house.” This dynamic means that more dollars are now required to achieve the same construction output.
It is important to note that the increase in construction costs this year has been more moderate compared to 2024. Data from ZoneProp indicates that while cumulative costs have risen by 126% as October 2023, the pace of this increase has slowed. As an example, the rise in June was reported at a more modest 1.2%.
