Buenos Aires Real Estate Survey: Line Up The Usual Suspects

Recoleta, Palermo and Belgrano remain the Top 3 BA neighborhoods in terms of median price/SF.

A new survey of 465 players in the Buenos Aires real estate sector sheds new light on the market’s strengths, weaknesses and median price levels by neighborhood. LaNacion shares the results of the “Real Estate Scene 2010″ survey led by Mercado and Reporte Inmobiliario.

There was general consensus among the respondents that prices are relatively high in BA, and 57% believe prices will continue to rise during the course of 2010. 30% feel prices will stay flat, while 13% think prices could actually fall over the next eight months. Even greater than rising prices, 60% of those surveyed feel the biggest obstacle to home ownership for buyers in BA is, what else, the lack of financing.

The affordability outlook is similar for renters, as 64% of those surveyed believe rents will increase this year and 24% predicting the average rent increase will be greater than 10%. Despite the obstacles, the majority of respondents are bullish on the sector’s overall outlook including the prospects that new residential projects will be introduced over the next 12 months.

The general mistrust of banks means real estate is still viewed as a tangible, safe harbor asset class for buyers, while the scarcity of mortgages ensures a steady stream of future renters for those looking for investment properties in BA. In terms of median prices by neighborhood, the usual suspects remain the most expensive and desirable destinations: Recoleta, Palermo and Belgrano. Villa Devoto, Nunez and Barracas occupy the second-tier in terms of affordability while Villa Urquiza, as noted previously on InvestBA, is growing in popularity and moving up the rankings in all categories.