Puerto Madero: BA’s Neighborless Nirvana

Sentáte: Will shifting demographics and falling prices boost the barrio appeal of Puerto Madero?

Exactly four months have passed since we shared the news that 7 of every 10 units in Puerto Madero sits vacant. And while one can draw their own conclusions about perceived frothiness in an individual neighborhood, Florencia Guerrero doesn’t beat around the bush. “Puerto Madero is the most expensive neighborhood in the city. It doesn’t have schools, hospitals or bus service. Only 30% of the units are occupied, and there are no children.”

Until recently, Puerto Madero was one of the most sought-after BA barrios, but the pace of new unit construction far exceeded the tiny population of 6,628 year-round residents, compared to Palermo, Belgrano and Recoleta which are collectively home to over 600,000 residents. Simultaneously, developers began to price units in the stratosphere writes Guerrero, ” Three-room apartments sell for US$680,000 and one-room apartments rent for more than US$1,000, which is 45% higher than Palermo.”

While Puerto Madero may not be the ideal place for renting or for families with children, some analysts believe the neighborhood has the necessary ingredients to still attract unmarried singles, divorcees and porteno DINKs (Dual Income No Kids) in their thirties and forties with good jobs and salaries. This theory is in line with Nora Sanchez’s shifting demographic piece from Clari­n, Buenos Aires Grows in Square Meters, but not in Population.

By November 2010, average unit prices in Puerto Madero had already fallen 30% from their peak in 2008/09. If that trend continues, residential vacancies might begin to fall in BA’s neighborless nirvana. (Full Story in Spanish)