There is an excellent analysis of the Buenos Aires real estate market in today’s iProfesional which takes a deep dive into historical data, barrio trends, exchange rates, interest rates, mortgage penetration and market pesofication.
As sweeping as it is granular, it takes a very complex topic and makes it more opaque by offering a laundry list of reasons why average prices per square foot have risen steadily over the past five years. Cutting through the clutter, the best quote of the article comes from the Founder of the Argentina Real Estate Chamber who bottom lines the BA status quo.
“The price per square meter did not fall for a very simple reason: those who own real estate have zero debt,” says Armando Pepe adding, “For that reason, they can put up with the status quo (currency controls, market slowdown, shortage of dollars, etc.) until the market recovers.”
“Market recovery” in this situation means resumption of market activity (the actual buying and selling of real estate) rather than a recovery of average prices which have appreciated slowly and steadily over the past five years. To better visualize this appreciation, InvestBA presents the above slideshow of average real estate prices in 10 Buenos Aires neighborhoods. (Full Story in Spanish)
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