“Enough, I got here”, is what Juan José Madero, president of the Argentine Chamber of Rural Real Estate (CAIR), said that landowners who decide to put them up for sale usually say to go live in another country. This is a new seller profile that appeared in the last two years. In the field they assure that they are people who, tired of the reality of the country, part with their assets to put down roots abroad.
Madero explained that the figure of the owner who sold because he was leaving the country was historically linked to those who did so because they had a superior project, attracted by another possibility or investment project abroad. This, he maintained, was “very eventual, one every so often.” However, in the last two years a new figure has appeared. “Now, the reason for the sale is no longer because of the attractiveness of another place, but rather an expulsive issue due to the situation here,” he said.
In fact, he indicated that in his portfolio he has farm owners already living in another country and that they left the sale authorization. “We have a sales mandate and we have to comply with it, but that the cause be that it is very painful. As an Argentine it hurts me a lot“, he claimed.
“It is a seller figure that in the volume of reasons for sale is less, but very striking because it is new. It appeared in the last two years and in 2020 it became more powerful ”, Wood explained.
Unlike what normally happens, with sales that are the result of the seller completing a cycle, be it life, family or for any other reason, Madero expanded on the new profile: “It’s different. They are profiles that come from fields with a good level of productivity and with energy to carry out productive enterprises, but they are like defeated and say enough is enough, I’ll get here, I sell and I’m going to another country”.
In addition to those who leave the fields because a family cycle is over or there are many heirs to the scale of exploitation, profiles that represent 70 to 80% of the sellers, there are also those who leave a field because with their children outside the country also want to go to be with them.
According to Madero, since the current ruling party won the PASO of 2019 “the market changed.” As a result of the fact that land values ”fell quite a bit”, the market “slowed down” and the activity index is sailing at a “quite discreet” level. To this context, the change of mood of the producers and owners was added. “There is discontent over the lack of predictability and clear measures. A series of components that make this new figure appear (of those who sell to leave the country)”, he specified.
Meanwhile, Federico Nordheimer, director of the rural real estate company Nordheimer, affirmed that in the last two years he has gained more clients who are already outside the country and who want to get rid of their assets in Argentina. “They say that they don’t want to know anything more about Argentina. It is mistrust with the country”.
Then he added: “Clients tell us that they have the field, but that their children all went to live outside, that they are not going to continue and that is why they want to sell it.”
In relation to last year, the rural real estate market had a reactivation, despite with a “stable, discreet and selective” activity. Within the framework of the 8th rural real estate market update session, held recently, Madero had explained that in 2021 the market started irregularly, after a last drop at the beginning of the year as a result of the Government’s restrictive policies.
Meanwhile, although the operating result of agricultural production improved, land prices did not rise and became plateaued. In this context, the investor is operating within an amount of up to two million dollars and above five million “nothing happens” with the operations. The buyer profile is 80% the agricultural producer in its different profiles.
In this regard, Nordheimer remarked: “The tickets above five million dollars, in general, are people who have significant capital, but do not want to know anything more about the country and prefer to be outside, calm and not invest in the country again. ”.
On the other hand, Mariano Maurette, head of the Campos Section of Alzaga Unzué y Cía., pointed out that those who are leaving the country are foreigners. “We have clients who have been investing in Argentina for many years, but who today are disenchanted and frustrated, wanting to end their business here.”. He added: “They want to get rid of their fields because of the impossibility of growing due to the land law (it limits individual purchase, for example in the core agricultural zone, to 1,000 hectares).”
For his part, Horacio Madero, director of Compañía Argentina de Tierras SA, indicated: “We have specific cases of clients who intend to sell here and buy land in Uruguay and the United States. Some do not stop evaluating Paraguay”. He explained that “there are not so many”, but that they have appeared in recent years.
He also spoke of those who have their children living abroad and who leave their land to go with them. “It’s an idea they had for a few years”, but the situation in the country “push them to make the decision”.