Recent headlines regarding Buenos Aires real estate sales activity have been improving steadily this year, and La Nacion says builders are starting to feel equally optimistic.
During the first five months of 2010, the construction industry posted a 10% increase in new projects under development, while the sale of condominiums and single-family homes advanced 7.1%, according to the Universidad Argentina de la Empresa (UADE).
The UADE’s prestigious Economics Institute compiled the data and forecast “stability” across-the-board for real estate sales, median prices and inventory of rental units. The analysis of all construction segments found the largest January-May increases in three sectors: oil and gas construction (+41%), road construction (+10.4%), and housing construction (+9%).
The UADE study offers a detailed analysis of the local real estate market where new housing inventory grew 7.1% in Capital Federal and Greater Buenos Aires. The rise in inventory was accompanied by an increase in median prices, especially in the Northern Corridor of Buenos Aires, where new condominium prices gained 9.7% in U.S. dollars compared to the same five-month period in 2009.
Median prices of existing inventory in BA posted a 9.3% gain. The greatest increase took place in the Recoleta neighborhood where the average price per square meter for new construction units rose 11.2%. Other BA barrios popular with foreign buyers posted more modest annual price increases including Palermo (+1.5%), Belgrano (+1.2%) and Nunez (+1.2%).