View from the pool deck of Maral 52, one of the luxury towers under construction in Mar del Plata.

Yesterday was an historic day here in Buenos Aires. Millions took to the streets to celebrate the 200th anniversary of the Revolution for independence from Spain. Further down the coast in Mar del Plata, festivities were equally raucous; yet, it’s another “200″ that’s generating headlines.  That’s the number of new buildings currently under construction in this seaside metropolis of 550,000 residents, according to Editorial NyP. That ratio of new construction to population may sound out of whack until you consider the population of “Mardel” more than doubles several times during the course of the year as visitors, many from Buenos Aires, pack the local beaches. While the numbers are impressive, the housing boom enthusiasm is tempered by NyP with a closer look at real estate values which are now on par with BA neighborhoods like Palermo and Caballito. Inland real estate values in Mardel are roughly $2,000/m² ($185/SF), while coastal values range from $2,700-4,000/m² ($250-370/SF). General consensus by those interviewed is that prices are inflated and local demand, especially from middle class Argentines who rely on bank financing, may not be adequate to absorb future inventory levels. Some Mardel projects completed during the past two years are still not 100% sold, which may give pause to developers of an additional 200 buildings currently approved. While foreign buyers may choose to steer clear of Mardel condos, the region should not be overlooked entirely. Beautiful beach cottages and country homes in secluded forests are scattered around Mardel and offer excellent value for investors. (Full Story in Spanish)

Howard Johnson S.A., the largest hotel chain in Argentina features luxury projects with polo fields.

As the wave of new developments and gated communities grows in Buenos Aires, Clarín reports on the simultaneous growth in the number of local projects featuring luxury hotels and resort-style amenities. “The goal is to offer a value-added service to the property owner,” says Clarín, “giving them benefits within the development (assorted discounts) and enhancing the overall comfort level of the project. Several of these mega-hotels are located in the interior of the country (the majority in the Patagonia), taking advantage of the benefits and natural beauty in this part of Argentina.” But BA residents don’t have to travel all the way to Bariloche or San Martín de los Andes to find these types of luxury developments. In fact, several hotels are being built in the surrounding Province of Buenos Aires, and U.S. investors will recognize one of the names behind some of the most high-profile projects. Located in Brandsen, roughly 60 miles from downtown BA, the Howard Johnson Finca Maria Cristina features a 40-room hotel, Spa, Convention Center and Polo Fields. A HoJo with PoLo? That’s the level of style and sophistication the chain has  achieved in Argentina where the Master Franchisee, H.J. Argentina S.A., has become the largest hotel chain in the country with 23 completed hotels and 18 under construction. In addition to professional polo instruction and a helicopter transportation option, the Finca Maria Cristina project features a variety of accommodation styles including large,  six-person Boutique Villas. The developer currently plans to build 15 of these upscale villas and make them available to the public.

Ranger Y Yo: Ford & JWT tapped local legends and creative talent in launching the new Ranger in BA.

Borges…Cortázar…Ranger? Lovers of Latin American literature know Argentina has a rich tradition of magic realism. The literary style which draws heavily upon fables and myths to highlight the magical in contemporary society exploded in the 1960’s and continues to inspire young writers today…often in places where you least expect it.  Take for example this story from AdAge of Ford’s new truck roll-out in Argentina. Yes, everyone agreed, the 2010 Ranger is a fine truck, but the new model didn’t really have head-turning upgrades over last year’s model. So Ford turned to its agency, JWT, who in turn created a campaign that solicited countryside fables from citizens in BA, narrowed the entries down from 1,000 to 3 and selected tree different playwrights to create original, 25-minute plays. Expensive? Yes. Time-consuming? Yes. A brilliant way to connect with your customers, broaden your base of potential buyers and bring cultural stimulation to the masses.? Yes, yes and yes. The traveling production, which played four different cities in BA province and drew large crowds hand-picked by local dealers, has been so popular that, according to Marketing Director Ricardo Flaminni “local mayors have contacted Ford and asked if the dramas can come to their towns, too.”  So how does the play end? The bottom line focus for Ford is ultimately regaining market share in Argentina’s competitive truck space, but the value of what they and JWT created and gave back to the masses can never be captured in a PowerPoint. Bravo!

Despite a sluggish start and less new construction, 2009 finished on a positive note in Buenos Aires.

Argentina’s Reporte Inmobiliario just released the 2009 summary for real estate transactions in the City of Buenos Aires and—despite the fact that activity is at the lowest level in a decade—the overall trend for 2009 is positive. According to RI, “Compared to 2008, the total number of real estate transactions in the City of Buenos Aires (75,950) fell 21.84%, while the total area of housing units under construction declined almost 35%. In the Province of Buenos Aires, the decrease in the number of transactions (105,638) was 25%.” As the adjacent bar graph indicates, BA home buyers really pumped the brakes during the first half of 2009 with monthly sales figures falling on average 30% compared to 2008. If that trend had continued, 2009 real estate transactions in the City would have fallen to around 60,000 compared to the actual figure of 75,950. After eight long months, renewed optimism and market activity finally kicked in around September, and the year ended with the first monthly gain in real estate activity vs. 2008. In terms of units under construction, MercoPress reports “New projects totaled 1.7 million square meters (18.3MM sq. ft.), which means a 34.7% fall compared to 2008. Similarly three neighborhoods concentrate the majority of new projects, with one of them (Palermo) absorbing 11% of the total which is 200,918 square meters (2.16MM sq. ft.).” InvestBA believes the upward trajectory of sales activity will continue in the first-half of 2010 given a favorable supply/demand imbalance, the lingering mistrust of local banks and lack of sound investment alternatives. The second-half of 2010 should be less robust given the shifting landscape and growing uncertainty building up to the pivotal 2011 elections. (Full story)