The Housing in Well is in an unprecedented crisis in Argentina. A survey by real estate portal Zonaprop confirmed that this type of units is seeing low demand due to skyrocketing construction costs.
The outlook for this segment is bleak. In dollars, The construction cost almost three times more compared to five years ago. The result marks a radical shift in the market: what was once the cheapest option for buyers is now the most expensive.
Current demand is predominantly focused on other segments of the real estate market. Well, the units have been relegated to a marginal spot, a decline that reflects the new preference map of Argentine buyers.
The numbers that reveal the collapse in demand
The Zonaprop survey provides convincing figures on this structural change. 78% of searches for property purchases It is targeted at used units while 20% targets brand new homes.
In contrast, only 2% of demand is directed at fountain departments. This figure clearly reflects the loss of attractiveness of a segment that has understood how to influence the preferences of investors and buyers.
The trend has worsened dramatically in recent months. According to the third quarter of 2025 in September only 1.3% of total demand was directed to well units.
Two years ago, in 2023, this share was 5%, representing a sustained and significant decline in this segment. The report explained that this behavior is directly related to the evolution of prices and costs related to construction.
The square meter in the well becomes the most expensive
One of the most shocking data from the report is that flooded homes became the most expensive in the real estate sector. So far in 2025, This segment recorded an increase of 9.13%which brings the value of the square meter to $3,056.
This means that the well-equipped units even outperformed the brand-new apartments. The average value of the latter is in $2,906 per square footand thus positions itself as the second most expensive segment.
For Zonaprop, this phenomenon marks a reversal of the historical logic of the Argentine real estate market. The difference in value between brand new units and well units is 5%, in favor of already completed properties.
“In the past, the drilling value was lower to compensate for the risk and the waiting time for the finished product,” the portal says. However, as of October 2024, this relationship has been completely reversed.
The devastating impact of construction costs
The background to this structural change is directly related to the increase in construction costs measured in dollars. Costs recorded a 4.7% increase in November and has recorded a 105% increase since the October 2023 presidential election.
This means that building today costs almost three times as much as it did five years ago, during the pandemic. The price increase has completely changed the rules of the game in the real estate sector.
Given this scenario, brand new units began to be more economical than drill rigs. These properties were built with material and labor costs from two to three years ago, when values were significantly lower.
In parallel, used properties were consolidated as a more stable and negotiable alternative. In the last year in particular, this segment has become increasingly important among buyers looking for price certainty and immediate availability.
The Argentine real estate market is therefore experiencing a change that is redefining purchasing preferences. The Apartments in goodonce popular with investors, faces an uncertain future Construction costs continues its unstoppable rise.
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