April 2008
Once you visit Buenos Aires you can see what all the fuss is about. And Im not just talking about the smooth Malbec wine, the juicy steaks (sorry vegetarians), the boutique shopping, snazzy street-side cafes and polo obsession.
The fuss in Buenos Aires, is in the property market, where you can see amazing properties with ridiculously low prices comparing to similar size cities, that have been held back due to Argentina’s hiccup in their economy 6 years ago.
But the hiccup is well and truly over, and everything is on the up and up. Argentina is a country that definitely feels like it’s making a transition. And this transition will benefit locals, and of course, investors.
Buenos Aires is a cocktail of amazing scenery and sites which can almost be mistaken for another city. There are elements of New York in Palermo Soho, elements of London Docklands in Porto Madero, and feelings of Paris in the cobblestone streets in Recoleta.
Palermo Soho
Palermo is a large barrio in Buenos Aires, and it has distinct sections. Palermo Soho is the best part, with building height restrictions, tree-lined streets, a vast assortment of street-side cafes, boutique designer shops, excellent public transport and easy access to the centre.
This is a popular area, going through some regeneration, where upper class locals and tourists alike prefer to stay. Land is very limited, and so are new luxury developments, which are greatly appealing to the locals due to their built-in amenities which usually include a swimming pool.
The property prices have been trailing Recoleta, but now seem to be catching up. From US$1,200/sqm for a standard second hand home, up to US$2,300/sqm for a new luxury property.
Recoleta
Recoleta has for a long time, held the highest standard for locations in Buenos Aires for luxury. And strolling down the tree-lined streets you can see why. Close to the city centre, with beautiful parks, amazing shops and the famous cemetery, this is a location that’s difficult to leave.
Prices for property here starts from approx US$1,600, and can easily reach as high as US$3,000/sqm for a new luxury apartment with facilities.
Recoleta will always be a popular location for wealthy locals and upmarket tourists.
Caballito
In terms of emerging middle class professional locations, Caballito is the location of the moment. This green and leafy barrio is only 20 minutes drive from the city centre and Recoleta. The area is packed with amenities – restaurants, shops, Village cinema complex; as well as parks and excellent public transport – trains, metro, and buses.
Prices in Caballito have been increasing, and tend to start now from approx US$1,200/sqm and US$1,500/sqm for a quality new luxury build. There is growing demand for short let as well as long let in this location as well, and rental yields in double digit are more than feasible.
Country Clubs
Country Clubs in Argentina are an upper class way of life. The country clubs are gated luxury communities with a range of amenities for residents and guests. The amenities include sporting opportunities like polo, golf or tennis, to facilities like swimming pools and BBQ areas, and also a Clubhouse.
The most popular country clubs are located within an hour’s drive of Buenos Aires and are quickly growing in popularity as wealthy Buenos Aires residents seek a country retreat.
Prices for land in country clubs start at around $40/sqm, depending on the facilities and location.
We visited Estancia Villa Maria, an amazing site and existing luxury hotel only 40 minutes drive from the centre and 20 mins drive from the International Airport. With the location, facilities and amenities, these land plots – most costing between $100,000 and $200,000 – will be an excellent land banking investment, to hold for at least 5 years.
San Telmo
Located in the centre and one of the oldest barrios in Buenos Aires, San Telmo is another area of consideration for property investors. With an amazing Sunday market, cobblestone streets and sidewalk cafes, San Telmo is a location with potential. With very little or no off plan developments in this location for now, it is definitely one to watch.
The main downsides at the moment, are that the area is a little shabby and run down and that locals don’t really want to buy here. This may cause a small glitch for re-selling or letting to locals. But currently foreigners and expats like this location and are the main property shoppers for the moment.
In Summary…
We loved Buenos Aires, and can see why the prices keep going up and up. We feel now is the right time to get into this market.
Also by choosing Fresh, we make the purchase as easy as possible, and provide support and assistance right through to completion and beyond. We have a network of contacts on the ground who can assist with letting or on-selling your apartment when you’re ready.
To view our thoughts on Recoleta and Buenos Aires please CLICK HERE.
To view the current opportunities in Argentina, please CLICK HERE.
Fiona and Shpresa in Porto Madero, Buenos Aires