This 3/2 BA residence with 1,800 square feet and a private garden is on the market for $269,000.

While most of the analysis and data in our Real Estate section centers on apartments and condominiums, La Nación reminds us of the often overlooked values lurking in neighborhoods throughout Buenos Aires: homes. Patient and discriminating househunters can often find attractive, reasonably-priced homes scattered in and around the multiple new construction mid-rises in BA. When considering the purchase of an existing home in BA, zoning is often the top consideration, because porteño homeowners don’t want to be sandwiched between high-rises. For that reason, areas like Almagro, Villa Crespo and Barrio Inglés where high-rise construction is prohibited are gaining in popularity, as are house-centric barrios like Villa Pueyrredón and Villa Urquiza which InvestBA profiled earlier this year. In these neighborhoods, one can buy a quality three-bedroom home with a garage and garden for around US$200,000 to $250,000. La Nación says cost per square foot is one of the most attractive metrics for those considering a BA home purchase, while other advantages include the option of building additions, private spaces like terraces and gardens with outdoor grilling areas and no HOA fees for common expenses and building maintenance. Given the high demand and relatively low inventory level of existing homes in BA, building a new home is often a good alternative, but lot prices in a given neighborhood are the key factor in the build vs. buy analysis. To read the full article in Spanish click here, and to learn more about investment opportunities in Buenos Aires, download the July 2010 edition of InvestBA Privada.

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.

Emerging: Rooftop view from a 3-room apartment in Parque Patricios currently listed at $63,500.

When looking for residential real estate opportunities, many porteños and foreign investors have historically focused on three of the wealthiest and most densely-populated neighborhoods in Buenos Aires: Belgrano, Palermo and Barrio Norte. And while outside interest and new project development in these three barrios continues unabated, local studies suggest some smaller, grittier neighborhoods are emerging as potentially more attractive investment alternatives. CIBA, the Real Estate Chamber of Buenos Aires Province, reports that three BA barrios—once considered only marginal—are actually offering better returns for some real estate investors. In calculating ROI, the study focused on the ratio of average annual rental income (that a buyer could anticipate) to average purchase price for an existing three-room property in good condition. Based on this criteria, the Top 3 neighborhoods in Capital Federal were Parque Patricios (6.10%), La Boca (5.95%) and Congreso (5.93%). The numbers highlight the affordability of units in these lesser-known areas according to local broker Luis Ramos of L.J. Ramos: “Today, in general, it’s more convenient to purchase real estate located in areas that aren’t so coveted, because the rental rate differential isn’t so great to make you think you could make significantly more income in one neighborhood over another.” In addition to offering the greatest ROI in this study, the Parque Patricios neighborhood is home to the City of Buenos Aires Technology District which seeks to create 30,000 new jobs by 2012. For more information about investment opportunities in these and other Buenos Aires neighborhoods, send your inquiry to in@investba.com.

Wine critic Matt Kramer writes of the "wonderfulness" of Buenos Aires. (Pictured: Soberbia 22 in Palermo)

American wine critic and Wine Spectator contributing editor Matt Kramer arrives in Buenos Aires for a three-month stay and wastes little time getting to know the food & wine delights of his newly adopted barrio of Palermo Soho. Kramer authored several Making Sense of Wine books and coined a term “somewhereness” in describing a wine’s character.  Prior to his departure, Kramer—a seasoned globetrotter—says none of his friends or family members ever asked him,Why Argentina? “Apparently, the word is out on the wonderfulness of Argentina as a place and the Argentines as a people,” Kramer surmises, “And, let’s be honest, the word is also out about how wonderfully inexpensive Argentina is for those of us trading woebegone American bucks for even more economically bedraggled Argentine pesos.” In describing what makes BA unique, Kramer points to the “intactness” of the city and a true feeling of identity in the city’s many diverse neighborhoods. In his own neighborhood of Palermo Soho, Kramer praises the diversity of culinary offerings: “Around the corner from us is a Moroccan restaurant. Italian restaurants abound. And, surprisingly, there are a fair number of sushi places.” So for at least one veteran critic in Buenos Aires, it seems “somewhereness” has truly given way to “wonderfulness.” ¡Buen provecho! (Full Wine Spectator article)

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.