Will the CEDIN reactivate the real estate business?

Even though they have just been launched, the “Certificados de Deposito de Inversion” "CEDIN” (for its Spanish acronym) –Deposit certificate of investment-, specialists on the area are already giving a few ideas on what they think about the new method of investment and how it could affect/benefit the Argentine economy.

Even though there are still no real or exact numbers or conclusions, many specialists of the real estate business are having high hopes on the new CEDIN launch and its possible economic reactivation effect.

The CEDINs are launched with the idea of reactivating the economy and the real estate business which has gone down for the last year in Argentina. The idea of the CEDIN is to allow people to have savings in other countries other than Argentina to declare them and bring them into the country to use them as investment. In exchange, instead of giving this people dollars, they get these CEDINs which may be used in real estate transactions.

According to the Director of “Bullrich Inmobiliarias” (a real estate agency), "the CEDIN will work more than this ‘zero functioning’. The market is completely frozen. It is not a matter of politics, but a ‘spread effect’”.

Nevertheless, according to José Rozados, the Director of the website “Reporte Inmobiliario”, the CEDIN will “hardly reactivate all the real estate segments”, and he adds that this specially applies to the medium and small-sized operators which are the most affected business at the moment.

As you can see, each person has its own beliefs and conclusions about the new launching of the CEDIN.

As we have mentioned in other opportunities, during the last months (or year), the real estate business has retracted, which has caused a big uncertainty among the real estate agents. The new launch of the CEDIN into the market could be the solution or the beginning of the reactivation of the real estate business. Nonetheless, it is a matter of waiting and analyzing the results, once they come. Many people are already asking about the CEDIN and how they work as a way of payment, so time will tell, and later in time we will be able to see what happens with the investments and the reactivation of the real estate business in Argentina.