The average price per square foot of residential properties in the two largest cities of Argentina’s interior have risen over 200% since 2003, according to a new report compiled by Grupo Edisur.
Over the past eight years, the average price/SF has risen 240% and 212% in Rosario and Cordoba, respectively.
Similar to March’s Parking Lot Millionaire, the report analyzed a wide variety of investment alternatives including stocks, bonds, gold and currencies. Real estate was the clear winner in Rosario and Cordoba where the number of new construction permits being issued in both cities surpasses the City of Buenos Aires. Not only are developers in both interior cities scrambling to build faster than in BA, the average appreciation in Buenos Aires over the same eight-year period has been a still healthy 90%.
The 90% figure coupled with the fact BA builders scaled back this year on new construction projects in Capital Federal are both positives for property owners in Buenos Aires where demand is strong, prices are stable and supply is dwindling to the point of some analysts now predicting scarcity in new and existing residential properties.
Take another step back and look at the average price of residential properties in Buenos Aires compared to cities like Rio and Sao Paulo (Graph), and you garner even greater appreciation for the combination of moderate price increases and dwindling supply playing out in some of the most sought-after neighborhoods of BA.
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