In Argentina, the construction sector is navigating significant uncertainties as it prepares for the future, particularly with projections for construction costs in February 2026. Experts emphasize that understanding the cost per square meter is pivotal for the real estate market's dynamics, especially in a climate where profitability for real estate developers is currently negative. The cost of construction has seen notable increases in late 2023 and early 2024, and while there was a continuation of this trend into 2025, the rate of increase has notably slowed down.

The National Institute of Statistics and Censuses of Argentina (INDEC) reported a 1.4% rise in construction costs in Argentine pesos in December compared to the previous month. This growth is attributed to increases in various components: materials saw a 1.6% rise, labor costs went up by 1.3%, and general expenses also rose by 1.3%. These figures indicate that while construction costs are increasing, the rate of growth is moderating, which could have implications for the real estate market and its stakeholders.

As developers grapple with these cost projections, the implications for property prices could be significant. With the construction sector struggling to maintain profitability under these conditions, challenges may increase for new real estate projects, potentially leading to a more constrained market. Therefore, the projections for construction costs are not only important for developers, but also for potential buyers and investors navigating the real estate landscape in Argentina.