Recoleta, Palermo and Belgrano remain the Top 3 BA neighborhoods in terms of median price/SF.

A new survey of 465 players in the Buenos Aires real estate sector sheds new light on the market’s strengths, weaknesses and median price levels by neighborhood. LaNacion shares the results of the “Real Estate Scene 2010″ survey led by Mercado and Reporte Inmobiliario. There was general consensus among the respondents that prices are relatively high in BA, and 57% believe prices will continue to rise during the course of 2010. 30% feel prices will stay flat, while 13% think prices could actually fall over the next eight months. Even greater than rising prices, 60% of those surveyed feel the biggest obstacle to home ownership for buyers in BA is, what else, the lack of financing. The affordability outlook is similar for renters, as 64% of those surveyed believe rents will increase this year and 24% predicting the average rent increase will be greater than 10%. Despite the obstacles, the majority of respondents are bullish on the sector’s overall outlook including the prospects that new residential projects will be introduced over the next 12 months. The general mistrust of banks means real estate is still viewed as a tangible, safe harbor asset class for buyers, while the scarcity of mortgages ensures a steady stream of future renters—both Argentines and expats—for those looking for investment properties in BA. In terms of median prices by neighborhood, the usual suspects remain the most expensive and desirable destinations: Recoleta, Palermo and Belgrano. Villa Devoto, Nuñez and Barracas occupy the second-tier in terms of affordability while Villa Urquiza, as noted previously on InvestBA, is growing in popularity and moving up the rankings in all categories.

Many new construction projects in Villa Urquiza offer modern amenities & greater affordability.

When we reported last week on the 2009 summary statistics for units sold and under construction in the City of Buenos Aires, Palermo was singled out for it’s #1 ranking among neighborhoods in terms of projects under construction last year. Yet, according to Clarín, a closer look at the numbers throws a little cold water on the Palermopalooza and simultaneously spotlights a rising star among BA barrios: Villa Urquiza. The 18,700 sq. ft. under construction in Palermo last year represented a 42% drop compared to 2008; however, the 13,000 sq. ft. under construction in Villa Urquiza (VU) represented a 10% increase compared to 2008. Local real estate analysts attribute the VU boom to good location (inside Capital Federal and adjacent to the General Paz Highway), availability of vacant lots, improving infrastructure (the Subway’s B Line will soon add two new stations in Villa Urquiza) and greater affordability. A quick look at new construction listings in VU reveals ample 2 and 3-room apartment inventory priced below $100,000. Finally, the recent price trajectory in the neighborhood has definitely been up: Prices for new construction in VU have more than doubled from $65/SF in 2003 to $149/SF last year. For more information on real estate opportunities in Villa Urquiza or other neighborhoods of Buenos Aires, please send your inquiry to re@investba.com.

Aerial view of debt-laden Dubai stands in stark contrast to the natural beauty of developments like this one in charming Cariló on the Tango Coast.

World financial markets were rocked yesterday when news surfaced that Dubai World, the Dubai corporation responsible for some of the UAE’s most lavish developments, was unable to meet interest payments on the over $80 billion in debt it holds. According to The Times, “Dubai World began the panic on Wednesday by demanding a standstill on its interest payments (and) worsened the mood when it postponed a teleconference for its bond holders, saying the phone lines were overwhelmed.” So what would you expect to find today on the front page of the UAE’s leading English-language newspaper? A probing analysis of Dubai World’s leverage? A soul-searching essay questioning why anyone would want to live in overpriced, garish desert casino castles like this? No on both. How about a glowing review of Buenos Aires? “With its beautiful buildings, lively social life and colourful history, it’s no wonder that Buenos Aires is fast becoming South America’s favourite capital,” writes Julianna Barnaby in today’s Khaleej Times and, she concludes, “one visit to Buenos Aires is definitely not enough.” Of course Dubai will be fine, because Abu Dhabi won’t allow it to fail, but the case for investing in waterfront real estate is much more compelling in Argentina than Dubai in terms of pricing, natural surroundings, building design and cultural similarities. For more information on coastal opportunities in Argentina and Uruguay, e-mail in@investba.com

Members of the La Aguada Polo Team relax at their training facility in Buenos Aires province.

In yesterday’s post, we learned why one global investor believes Argentina offers some of the best real estate values in South America. Today, the Financial Times’ Oliver Balch explains why the mega-rich—especially those with a passion for polo—are riding out the recession in Argentina. (Full article) InvestBA readers know October to December is polo prime time in Argentina, but Balch explains that interest remains strong year-round given Argentina’s plentiful and inexpensive prairies…the world-class quality of its bloodlines…(and) its crop of exceptional players (Of the 12 best-ranked players in the world, 11 are Argentine). Cutting-edge breeding and affordable embryonic transfer facilities are also cited as competitive advantages for Argentina’s polo industry.  “Death and bankruptcy are the only reasons to quit polo,” says Balch, “As long as the country’s mega-rich patrons remain healthy and wealthy, its polo industry should as well.” And thanks to Argentina’s relative affordability, it’s not just the mega-rich who can enjoy the polo lifestyle. Polo tourism has grown exponentially in Buenos Aires province thanks to the number of estancias offering polo clinics like La Aguada, El Venado and La Araucaria. So, as long as you’re going to ride out the recession, why not create your own polo uniform and ride it out in style?