Argentina » Market Report

Today the market of Argentina has evidently bottomed out. Opportunities are seen in prime downtown apartments, which are preferably suited for short-term rentals to incoming tourists. Tourism is successful in Argentina .In addition; Argentines are no longer vacationing abroad because of increased costs in peso terms. This has led them to gather to classic locations in the country such as Bariloche, Villa la Angostura and San Martin de los Andes in the Patagonia region. There is a rising demand for full-time and seasonal housing to accommodate both of the markets.

Buenos Aires, one of the worlds enormous cities, has seen major urban projects, including the development of parklands along the river and two other major redevelopment projects. The housing market provides some excellent opportunities to buy property at very low prices, at a time where the tourist industry and the economy are growing from strength to strength. Argentina presents some very talented options for buy-to-let and off-plan purchase in the major resorts.

 

Since late 2004, the sales property market was steady and kept the same prices until the second quarter of 2005. We started seeing a slow but steady increase in property prices. Rental properties in the lower segments are still limited, so prices have recovered significantly during the last year. We do not predict any more significant increase in rental values, since workers have not had that much of a salary improvement.

Regarding investment opportunities, there are a lots of opportunity in areas in the south of the city of Buenos Aires, like San Telmo and Barracas. In these areas, the demand is rising, and due to its great immediacy to all the better areas, they provide a great alternative.

Commercial properties lead a direction alike to residential real estate values but somehow less aggressive. Current closing values are between 15 and 25%, there has not been as much sales movement as compared to the residential sector. Pricing is stiff, probably the powerful owners reluctant to let go of their properties at lower values. Demand for office space is currently alert on high-end units.

International Property Brokers predict an increased demand for property in the coming years. Argentina is growing fast economically making a fast recovery from the economic crisis it faced in 2001. It has a stable democratic government, which is focusing to bring more investment in the country. Real estate market has benefited from these reforms and things look promising for buy-to-let and off-plan purchase.