The National Government of Argentina has enacted Decree of Necessity and Urgency 1017/2024 to implement divisible mortgages for real estate development projects. This measure aims to promote credit, revitalize the construction sector, and reduce the country’s housing deficit. It is important to note that, prior to this new regulation, only fully titled properties could be used as mortgage collateral.
The initiative, developed jointly by the Ministry of Economy and the Ministry of Deregulation and State Transformation, will allow properties intended for real estate developments to be subject to divisible mortgages. This applies to units that will later be subdivided under horizontal property regimes or real estate complexes, as well as lots requiring subdivision of common land.
Until now, the absence of divisible mortgages significantly limited the number of properties eligible for mortgage financing. This restricted private sector access to funding for new construction and prevented the use of land lots or functional units as collateral. With this new mechanism, each investor in a development project will be able to obtain individual financing.
Thanks to this measure, individuals will now be able to access long-term mortgage loans to finance the purchase of properties under construction or lots in new residential developments—even before the subdivision is formally completed. This will bring financing conditions closer to those available for finished properties, making it easier to access housing from the earliest stages of a project.
The Decree also introduces the concept of a “future asset mortgage”, a key advancement in Argentina’s mortgage lending framework. This new tool allows the financing of properties under development or not yet titled—commonly referred to as “pre-construction” or “off-plan” properties—through purchase agreements. The government seeks to open up new financing opportunities for homeownership through this mechanism.
From a governmental standpoint, this measure reflects a vision of economic freedom, expanding the tools available for real estate market operations. Rather than imposing obligations, it aims to enable a marketplace where, free from state-imposed constraints, the private sector can offer innovative financing solutions. The possibility of registering and freely trading purchase agreements represents a major step forward, expanding access to mortgage credit and allowing each housing need to find its answer in the market.
