The Coming Surge in Latin America Real Estate

Buenos Aires offers excellent values like this soy farm with owner's residence for under $300,000.

London-based PropertyWire, reports on the coming surge in certain Latin American markets given the increased interest from foreign buyers and developers, many from the U.S., Europe and Asia.

The real estate news service points to the recently announced trade mission by Indian developer group GIHED, and their search for opportunities and joint ventures in Argentina and Brazil. U.A.E.-based Elysian International has shown strong interest in the region, having recently acquired a 174-villa resort in Rio de Janeiro for $100 million.

With over 600,000 properties in 117 countries, Elysian is no stranger to foreign development, which puts Elysian CEO Masood Naseeb’s comments in sharp context: “We are predicting a 1,000 to 7,000% appreciation on land in the region particularly in the coastal areas.”

Still, Elysian’s string of acquisitions suggests their primary focus is on Brazil and, for those investor groups flush with petrodollars, the cost of Brazilian real estate doesn’t elicit as much as a blink. Yet, it’s worth noting the recent run-up in prices has the Brazilian Central Bank scrambling to create a real estate index to measure these increases.

As speculative fever rises in Brazil, commercial properties in neighboring Argentina and Uruguay continue to enjoy more moderate annual appreciation, hence foreign investors are likely to find better values here. Both countries offer ample inventory of large parcels for the development of gated residential communities, suburban parcels for the construction of office parks, downtown hotel/restaurant renovation opportunities and of course vast rural estancias for the development of large-scale agribusiness projects.

For more information about real estate opportunities in Argentina and Uruguay, download the new issue of InvestBA Privada.