(Bloomberg) — Sitting on a table in Eduardo Elsztain’s office in Buenos Aires is a glass sphere filled with $1 million in shredded, out-of-circulation US bills. The artwork, the real estate mogul says, is a constant reminder of the worthlessness of fiat currency.
That lesson is nowhere more true than in Elsztain’s native Argentina and has led the protege of George Soros to build an empire of shopping malls, farmland, office space and even gold mines. The rule is clear: land, bricks and mortar.
“My theory for the last 20 years, since we’ve lived through crisis and the depths Argentina sank to in 2002, is that our defense against liquidity is real assets,” Elsztain said in an interview. “Once you print money, it’s a kind of a drug that you can’t let go of easily.”
Elsztain has avoided speculative investments in stocks, bonds and derivatives that have been hit by repeat Argentine defaults as he built up his empire over the last 30 years.
Now his real estate company IRSA Inversiones y Representaciones, which owns 15 malls in Argentina, is booming even as the economy enters its sixth recession in a decade and inflation runs at more than 120%, driven in part by the government printing money en masse to finance its spending.
IRSA’s revenue surpassed pre-pandemic levels in the last fiscal year thanks to a bump from tourists filling its shopping malls and hotels. Earnings before interest, taxes, depreciation and amortization jumped 25% in the 2023 fiscal year from the previous 12 months, according to its annual report.
Activity from IRSA’s stakes in three hotels, including the exclusive Llao Llao in Bariloche, also performed well in the past fiscal year.
Sound Advice
Elsztain bought IRSA in 1991 with then-partner Marcelo Mindlin to gain access to Argentina’s capital market. He later designed his strategy after receiving some sound advice from an influential rabbi: get out of speculative assets.
That led him to approach Soros, who granted him $10 million to invest in Argentine real estate, which Elsztain says generated a triple-digit return in less than a year. In 1994, he purchased rural real estate firm Cresud, which would become his main holding. Cresud controls 27 farms in Argentina, Brazil, Bolivia and Paraguay — including a wool ranch in Patagonia — that span some 850,000 hectares — over twice the size of Rhode Island.
But it’s the malls that are proving a boon at the moment, even as their counterparts in the US struggle. Take a stroll through Buenos Aires’ Alto Palermo mall, where wealthy shoppers snatch up the latest fashions, and you’ll see his malls are operating at 98% capacity.
Sales grew 16% in real terms in the last fiscal year from 2022 at IRSA’s malls nationwide.
Elsztain says Argentina’s shopping frenzy is partly due to a post-pandemic boom in tourism, pent up demand, and high inflation that drives people to spend their paychecks quickly before prices surge again.
The Optimist
Now, as Argentina slogs through yet another crisis, Elsztain is turning optimistic. Things have gotten so bad, he says, that the nation is likely to vote in a business friendly administration in October’s elections, ushering in an economic boom.
“In 40 years of democracy we’ve never had candidates that have been more pro-market,” Elsztain said.
The frontrunner, libertarian outsider Javier Milei, aims to dollarize the economy and shutter the central bank. His closest competitor, Patricia Bullrich, is a hardliner from the market-friendly opposition coalition. Even incumbent Economy Minister Sergio Massa, whose coalition lagged in the August primaries, is seen tacking right if his party were to remain in power.
“I think more money will be coming than going,” he said. “Argentina has a tremendous amount of investments to be developed that are stopped because of a lack of liquidity, a lack of credit and the lack of a financial system.”
Soros Protege
Today, Elsztain’s 37% stake in Cresud is worth about $140 million at Argentina’s widely-used parallel exchange rate, and through Cresud he controls IRSA, mortgage lender Banco Hipotecario and Brazilian farm company BrasilAgro.
He also has a majority stake in miner Austral Gold which is listed in Australia and has assets in South America, as well as a small stake in a Canadian software company.
To be sure, Elsztain’s investments have had their share of bumps. An attempt to restructure a major Israeli holding went sideways in 2020, with Elsztain losing control of Discount Investment Corp. IRSA also felt the effects of workers’ slow return to offices after the pandemic, prompting the company to sell more than $250 million worth of office space in Buenos Aires, said Sergio Dattilo, a spokesman for Elsztain.
Read More: Elsztain Comes Unstuck in Land Known for Burying Dealmakers
IRSA sees commercial real estate heading toward flexible working arrangements, and Elsztain is already investing in co-working spaces adjacent to his malls. IRSA is also close to breaking ground on its “most ambitious project ever,” a large swathe of old docks called Puerto Madero Sur that will require investment over the next 20 years and will eventually house about 6,000 families, commercial space, hospitals and parks.
“People would ask my grandfather, how do you know you’re doing well with out of control inflation? He’d say: I want to know if I have one square meter, one more hectare of farm or one more parking space.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
