Argentina is feeling the global economic crisis, and like most countries everything has been affected. Retail sales are down and real estate has been hugely affected with sales falling 22% this year.

There has been little movement in property prices in Argentina though, as sellers and developers are almost refusing to lower their prices. And a lot of buyers are holding off, awaiting a decrease, which is creating a stalemate. It will be interesting to see by the end of the year if prices will come down, or if buyers will just start buying again.

Comparable to most capital cities around the world, Buenos Aires still has very low real estate prices. The best and most beautiful parts of city offer luxury studio or 1 bed apartments around US$70,000 – US$100,000 or from US$1,700/sqm.

With these apartments renting from US$800 per month, a gross rental yield from 10-13% is achievable.

Some economists say Argentina is currently in recession, and the economy could contract 3% in 2009, which is against the government opinion.

Either way, for the long term investor, despite the economic crisis, there is no denying Argentina holds amazing opportunities for city apartments or land plots close to the capital.