Financial
glossary

The rate at which available properties in a given market are sold or leased over a specific period. In Argentine regional markets, absorption rates vary significantly by city and property type. A low absorption rate indicates slower market activity; a high rate suggests stronger demand relative to supply.

The gradual repayment of a loan through scheduled payments over time. In the context of Argentine mortgage products, amortization schedules may be denominated in pesos or UVA (Unidad de Valor Adquisitivo), a unit indexed to inflation. Understanding which amortization structure applies to a given financing arrangement is important for evaluating long-term obligations.

A financial statement that presents a snapshot of an entity's assets, liabilities, and equity at a specific point in time. In real estate project documentation, a project balance sheet helps participants understand what assets the project holds, what obligations it carries, and what net value remains for beneficiaries.

A preliminary purchase agreement used in Argentine real estate transactions, typically signed before the formal deed (escritura). The boleto establishes the agreed price, payment terms, and conditions of the transaction. It is legally binding under Argentine civil and commercial law, though it does not transfer title until the escritura is executed.

The structure of financing layers in a real estate development project, typically ordered from senior debt (lowest risk, first to be repaid) through mezzanine financing to equity (highest risk, last to receive returns). Understanding a project's capital stack helps participants identify where they sit in the priority order for repayment or distribution.

A method of property valuation that uses recent transaction prices of similar properties in the same market to estimate the value of a subject property. In smaller Argentine cities, the availability of comparable transaction data may be limited, which requires careful interpretation of available information from property listings and registry records.

A model of collective real estate financing where multiple participants contribute funds to a development project, typically through a digital platform or structured legal vehicle. In Argentina, these arrangements are generally structured through fideicomiso or other legal entities. Participants should understand the legal framework governing any specific arrangement before participating.

An individual or entity that acquires land, obtains permits, arranges financing, and manages the construction and sale of a real estate project. In Argentina's interior, developers range from large regional construction companies to small local operators. The track record and financial capacity of a developer are key factors in assessing any project they promote.

The process of investigating and verifying information about a property or project before making a financial commitment. In real estate, due diligence typically includes reviewing title documents, zoning status, construction permits, financial projections, and the legal structure of any financing arrangement. Thorough due diligence is a fundamental practice for any informed participant.

A trust structure widely used in Argentine real estate development, governed by the Civil and Commercial Code of Argentina. A fiduciante (typically the developer) transfers assets to a fiduciario (trustee) to be administered for the benefit of fideicomisarios (beneficiaries). The structure separates project assets from the developer's personal patrimony, offering a degree of protection to participants. The specific terms of each fideicomiso are set out in the trust deed.

The trustee in a fideicomiso structure, responsible for administering the trust assets according to the terms of the trust deed. The fiduciario may be a financial institution, a professional firm, or another qualified entity. The identity and track record of the fiduciario is an important factor in evaluating the governance quality of a fideicomiso project.

An analysis prepared by a developer to assess whether a proposed project is financially viable. A well-prepared feasibility study includes cost projections, revenue assumptions, a timeline, and sensitivity analysis. Participants in collective financing arrangements should request and review the feasibility study as part of their evaluation process.

A financial metric that expresses the annualized return of an investment, accounting for the timing and magnitude of cash flows. In real estate project documentation, the TIR is often presented as a projected figure. Participants should understand that projected TIR figures are based on assumptions that may or may not materialize, and should examine those assumptions carefully.

An index published by INDEC (Argentina's national statistics institute) that tracks changes in construction costs over time. The ICC is relevant for evaluating whether a project's cost projections are consistent with prevailing market conditions and for understanding how inflation affects the economics of development projects in Argentina.

The standard unit of property measurement and pricing in Argentina, expressed in price per square meter. In Argentine real estate, prices are typically quoted in US dollars per square meter for sales transactions and in Argentine pesos per square meter for rental agreements. Understanding the prevailing price-per-square-meter range in a specific city and neighborhood is essential for evaluating whether a project's pricing assumptions are realistic.

A purchase of a property that does not yet exist — typically a unit in a development project that is still in planning or construction. In Argentina, pozo purchases are common and are often structured through fideicomiso arrangements. Buyers pay in installments during the construction period and receive the property upon completion. The pricing of pozo units typically reflects a discount relative to completed properties, which compensates for the construction risk assumed by the buyer.

The Argentine legal regime governing condominium ownership, established under Law 13.512 and updated by the Civil and Commercial Code. Under propiedad horizontal, each unit owner holds title to their individual unit and a proportional share of common areas. Understanding the rules governing propiedad horizontal is relevant for anyone purchasing or participating in a residential development project.

The annual rental income generated by a property expressed as a percentage of its purchase price. In Argentine regional cities, rental yields vary considerably depending on property type, location, and local economic conditions. Gross yield calculations should be distinguished from net yield calculations, which account for vacancy, maintenance, and administrative costs.

The public registry that records property ownership, encumbrances, and other legal restrictions on real estate in each Argentine province. Each province maintains its own registry. Consulting the relevant provincial registry is a fundamental step in verifying the legal status of a property before any transaction or participation in a project involving that property.

The formal notarial deed that transfers ownership of real property in Argentina. The escritura must be executed before a public notary (escribano) and registered with the provincial Registro de la Propiedad Inmueble to be effective against third parties. The escritura is the definitive document of property ownership in the Argentine legal system.

The assessed value of a property assigned by provincial or municipal tax authorities for the purpose of calculating property taxes (impuesto inmobiliario). In most Argentine provinces, the valuación fiscal is substantially lower than the market value of a property. It should not be used as a proxy for market value in any financial analysis.

A metric used in some Argentine real estate project presentations to express the weighted present value of projected cash flows. As with any discounted cash flow metric, the VPP figure depends heavily on the discount rate and cash flow assumptions used in the calculation. Participants should request the underlying assumptions when evaluating any VPP figure presented in project documentation.