Consultatio’s Costantini Optimistic About Argentine Real Estate, According to Reuters

By Gram Slattery and Juliana Castilla

BUENOS AIRES – Argentine real estate and banking mogul Eduardo Costantini is optimistic about the country’s luxury real estate sector and has plans for substantial investments in the latter half of 2016.

Costantini, who heads the asset management and real estate firm Consultatio, has built a reputation over recent decades with upscale residential developments, including the vast Nordelta community located north of Buenos Aires.

In a recent interview during a Reuters Summit event focused on Argentina, Costantini noted that the recovery in the high-end real estate market, which began last year with rising sales, has shown signs of picking up speed.

"In our case, we witnessed a significant increase in sales in 2015, and our sales are surpassing last year’s figures this year," Costantini shared from the offices of MALBA, a modern art museum he established in downtown Buenos Aires.

Regarding Consultatio’s developments, he mentioned, "In both Puertos and Nordelta, we’ve introduced new neighborhoods, and so far, the total sales value is nearly equal to what we anticipated for the entire year."

Despite the positive trend in the upscale market, the overall construction sector in Argentina has remained largely stagnant in 2016, as free-market reforms by center-right President Mauricio Macri have yet to deliver the expected economic revival.

However, there are recent indications of improvement. Government data revealed that the square footage of construction permits increased by 11.8 percent in May and 6.8 percent in June compared to the same months last year, with architects reporting a rise in demand.

Costantini indicated that Consultatio is currently experiencing an "excess of liquidity" and is exploring potential developments on a parcel of land that houses a renowned polo field in the Palermo neighborhood of Buenos Aires.

"The initial market offering will involve the lands in Palermo, which exceed 100,000 square meters, and Consultatio plans to engage actively in that process," he stated. "We definitely intend to take part and invest."

He further expressed confidence in a recent tax amnesty initiative designed to encourage the repatriation of undeclared funds. Known as "blanqueo," this law permits Argentines to declare undisclosed funds at favorable tax rates by investing in government bonds or specific mutual funds, among other options.

Real estate has consistently been a favored investment avenue for affluent Argentines. Costantini suggested that it is "very probable" that Consultatio will establish a real estate-based mutual fund to cater to clients interested in the blanqueo program.

"We have been receiving a significant number of inquiries regarding the establishment of a fund," he remarked. "I believe the blanqueo will be a success."