Buenos Aires Average Real Estate Prices Up 2% In 2015
City of Buenos Aires average real estate prices rose a modest 2% in the first half of 2015 according to a new report from a local property website.
The ZonaProp survey compared the six-month change in the average asking price of thousands of residential listings in Buenos Aires in January and June. Two percent was the average increase when taking all neighborhoods into consideration.
Largest Increases, Most Expensive
Over the six-month period, there was an average increase in over half of BA barrios, and the largest increases were seen in middle class neighborhoods like Abasto (+10%), Barracas (+5%) and Colegiales (+4%).
The analysis of current listing prices shows the four most expensive neighborhoods in Buenos Aires measured in dollars are Puerto Madero ($4,971/m2 or $461/sf), Las Cañitas ($2,986/m2 or $277/sf), Palermo ($2,764/m2 or $257/sf) and Recoleta ($2,762/m2 or $256/sf).
57% of Buenos Aires Neighborhoods Show Increase
“Buenos Aires real estate sales prices in dollars started rising again and today 57% of neighborhoods show an increase, either slight or significant, compared to one year ago,” said the official release from ZonaProp.
What remains unchanged is the “dollarization” of the local real estate market, writes La Nación’s Alfredo Sainz in his detailed analysis of the market status quo.
Today only 7% of BA real estate classifieds are listed in pesos compared to the peak of 20% (December 2012) when the government was pushing “peso-fication” of the local market: a futile effort that never caught on.
“For us, the average increase of Buenos Aires real estate prices over the past twelve months was 4.1%, but you cannot lose sight of the fact that average price have still not recovered all of the terrain lost over the last two years and, compared to 2013, average prices measured in dollars today are still 6.5% lower,” says Reporte Inmobiliario director Germán Gómez Picasso.
Cautious Optimism Before Elections
“When analyzing the reasons for the price recovery, the first factor that jumps out is a reactivation of demand. After more than three years of practically uninterrupted price free fall, the number of closings in Capital Federal has posted three consecutive months of increases,” writes Sanz.
“The approaching elections and the stability of the dollar in recent months has prompted more investors, who may have been analyzing a purchase, to go ahead and do it,” adds Picasso. (Full Story in Spanish)
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