Construction costs in Argentina are on the rise, with recent increases in the cost of building materials affecting home prices. As of early 2024, the cost of construction rose sharply, influenced by the exchange rate and economic uncertainty in the sector. This creates challenges for both real estate developers and individuals considering home construction, as the profitability in the construction industry declines amid these financial pressures.

The price per square meter has become a crucial factor in real estate dynamics, impacting purchase and construction decisions. Recent data from INDEC's Construction Cost Index (ICC) indicates a gradual increase in costs, with a 1.4% rise in December, suggesting that the construction sector is grappling with inflation and fluctuating currency rates. Developers are finding it increasingly difficult to maintain profitability while trying to meet market demands for affordable housing.

This trend raises concerns for housing affordability in Argentina, particularly for those in lower-income brackets seeking to build homes. The ongoing increase in construction costs not only poses a barrier to homeownership but may further exacerbate the housing crisis in the country. As economic conditions evolve, understanding these trends is vital for stakeholders in the housing market, including developers and prospective homeowners.