Milei Administration: IPC falls, home purchases rise, and record car sales

Argentina is in the midst of a strong economic recovery, not only through the main macroeconomic indicators, but also in the daily lives of the population.

After decades marked by recurrent crises, high inflation, and prolonged stagnation, the liberal reforms implemented by the government of Javier Milei are beginning to consolidate a new economic cycle. This process is reflected in the return of growth, slowing inflation, improved purchasing power, and the return of credit, investment, and confidence.

The real estate market

One of the sectors that has benefited most from stability is the real estate market. The favorable impact of the deregulation of the rental market, one of the first measures Milei took upon assuming the presidency, is widely recognized.

This decision led to a notable increase in the supply of rental properties, resulting in a decrease in real prices. In addition to this positive change in the rental sector, encouraging figures are also beginning to emerge in the real estate sales segment.

According to the most recent data from the National Institute of Statistics, during March 2025, 62,808 home sales transactions were completed, representing a 40.6% year-on-year increase and marking the best record for the month of March since 2007.

In the cumulative total for the first quarter, the increase was 20.7%, with a notable boost in new property sales (+64.2%) and solid performance in used properties (+34.8%). Although the final data for April is not yet available, a year-on-year increase of 50.5% has already been reported in the City of Buenos Aires.

The automotive industry

The rebound is not limited to the real estate sector. The automotive industry is also reaching record figures. According to the Automotive Trade Chamber, 158,960 used vehicles were sold in April, representing a 16.7% increase compared to the same month last year and 11.6% more than in March.

In the first four months of the year, 620,383 units were sold, 33.5% more than in the same period of 2024, consolidating the best April since monthly records began in 1995.

However, the most notable data of the month in the automotive sector did not come from the used market, but from the resurgence of new car sales, a segment that had been out of reach for many Argentine families.

According to the Association of Automotive Dealers of the Argentine Republic (ACARA), 41,534 new vehicles were registered in April, which is equivalent to a year-on-year increase of 26.9%. In the cumulative total for the first four months, the increase was 18.3%, marking a significant turnaround after years of sharp contraction.

The sharp drop in inflation and Country Risk

These achievements are not the result of chance. Since Javier Milei assumed the presidency in December 2023, monthly inflation has dropped drastically, falling from the 25% recorded at the start of his term to 1.5% reached last May.

This slowdown in inflation has restored breathing room to purchasing power, which had been severely hit in previous years, but began to recover from mid-2024, driven by a combination of rising wages and fewer price increases.

Meanwhile, Country Risk fell from over 2,000 points to less than 650, improving access conditions to international credit and significantly reducing the cost of capital. This progress reflects Argentina's return to global financial markets.

Economic growth

The recovery is also reflected in the reactivation of economic activity. According to projections from the Ministry of Economy, Gross Domestic Product will grow above 5% in 2025, after avoiding an even deeper recession in 2024 thanks to a rapid and deep correction of fiscal and monetary imbalances. The adjustment implemented represented approximately 15% of GDP, marking a milestone in the country's recent economic policy.

A key aspect of this transformation has been the lifting of the currency controls and the elimination of monetary sterilization instruments such as LELIQs, which for years captured the financial system in favor of government borrowing, restricting credit to the private sector.

With the fiscal surplus in place since the beginning of Milei's administration and a firm monetary policy aimed at stability, with no new money issuance, the banking system is resuming its natural role of financing families and private companies.