Construction Costs Rise 77% in Dollars Since 2018, While Prices for Off-Plan Units Only Increased 5.4%

The increase in construction costs in dollars continues to widen the gap with selling prices and consolidates itself as one of the main challenges for real estate developers. This is stated in the latest report Metadato, prepared by the Chamber of Urban Developers (CEDU) and the Association of Housing Entrepreneurs (AEV). According to the survey, when comparing the average index of 2018 with June 2026, the cost of construction in dollars increased by 77.25%, while the selling price of off-plan units is only 5.40% higher. The report indicates that this difference reflects the persistence of a high construction cost in dollars that continues to pressure the sector's profitability. The document adds that only between March and June of this year, the cost of construction increased again by 4.41% measured in dollars, deepening a scenario that, according to the entities, hinders the development of new projects. Furthermore, it warns that the evolution of construction costs continues to be well above the purchasing power of the population. In the last year, the CAC index accumulated an increase of 27.56%, while wages grew by 30.53%, a dynamic that, according to the report, continues to condition access to housing, especially for lower-income sectors. Another focus of the report is the evolution of mortgage financing. After the strong growth observed during much of 2025, the market began to slow down. In May, the deeds of sale in the City of Buenos Aires fell by 3.12% year-on-year, while mortgages dropped by 54.85%, an evolution that the report links to the greater requirements imposed by financial entities to access loans. In the accumulated data for the first five months of 2026, sales operations show a decrease of 1.17% compared to the same period last year. The document recalls that during 2025, the market had reached the highest volume of deeds in the last 18 years, but maintains that the tightening of credit conditions reduced loan origination and extended administrative timelines until the completion of operations. Despite this, the mortgage credit propensity indicator showed improvement. In June, it stood at 1.80 points, driven by the reduction in the annual nominal interest rate of loans, which fell from 13.90% in January to 9.50% in June, resulting in a decrease of 18.73% in the value of the mortgage payment. However, the report clarifies that the tightening of approval criteria continues to affect the pace of operations. Regarding activity, the report notes that cement dispatches have recovered since March and remained relatively stable between April and June, although they are still 14.53% below the best record achieved during 2025. Part of that demand is supported by high-end developments, whose developers maintain expectations of a future price improvement despite the high construction costs. Registered employment in construction companies showed a slight improvement of 0.46% in the first four months of 2026, although it remains 17.62% below the average recorded in 2023, reflecting that the recovery of the sector is still partial. Meanwhile, the supply of rental properties in the City of Buenos Aires increased by 18.57% since March and accumulates a rise of 6.41% in the first five months of the year, while the gross profitability of rentals fell by 2.9% in the last period as a consequence of the dollar increase. Additionally, prices for off-plan units continue to grow above those of completed properties, with a gap of 6.42%, while the values of used apartments remain practically stable.