Investments in times of political uncertainty: portfolio strategies

In the face of the presidential elections in Argentina, uncertainty and a wave of constant information that influences investment decisions increased. Expectations change quickly and this generates concern. However, for smart investors these moments often become unique opportunities to capitalize and secure long-term profits strategically.

Diversification becomes a key approach to address multiple investment objectives and, given the current situation and possible eventualities, dollarization through the real estate sector emerges as one of the most solid and reliable investment vehicles.

In some local markets, unique opportunities arise due to their potential to generate profitability, which attracts the attention of large investors due to their solid performance in historical situations like the current ones.

In the past, elections have triggered improved returns for real estate investors, as political changes can influence the market cycle. In Argentina, this sector has demonstrated remarkable resilience and is experiencing steady recovery.

Experiences such as those experienced in 1989 and 2001, where the market was in similar situations, show that those bold investors who made strategic decisions at critical moments had the opportunity to double and even triple their investments.

Neighborhoods that previously traded at higher prices are presenting unique opportunities due to contraction in demand and excess supply.

In this context, informed investors can capitalize on political uncertainty to acquire properties with high rental potential. This change in scenario is driven by a decrease in demand, along with an excess of supply and poorly valued properties. In a market where access to mortgage loans is limited and closing values ​​generate distrust, these properties are currently being valued at less than 40% of their past value.

The desire to obtain a property is a goal that many Argentines had to postpone due to economic fluctuations and restrictions on access to credit. This can be a time to achieve that dream.

* Víctor Zabala is CEO of Sumar Inversión

by Victor Zabala

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