Distrito Audiovisual en Buenos Aires

The A/V District is one of four "polos" transforming BA into a net exporter of creative services.

When most foreign travelers and investors think of Polo in Buenos Aires, it conjures up images of Cambiaso and Palermo, high-goals and Hurlingham or Ellerstina v. La Dolfina. But the new wave of “polo” being embraced by the City of Buenos Aires is slowly changing the landscape of Capital Federal and transforming the city into a net exporter of creative services.

Under the direction of the Ministry of Economic Development, the four main “polos” or centers of attraction in Buenos Aires are the emerging Arts District in Barracas based in the Metropolitan Design Center, the Tech District in Parque Patricios, the Audiovisual District in Palermo Hollywood and the Pharmaceutical District in the south. The Districts are spaces where companies and academia come together for innovation and production while blending with the cultural identity of the surrounding barrios.

Yesterday we were pleased to meet with Ana Aizenberg of the Buenos Aires Film Commission and Florencia Stivelmaher, Operations Director of Creative Industries. They explained to us the emerging footprint of the Audiovisual District which will eventually encompasses 1,700 acres and ultimately generate 63,000 jobs in the film and television sector. The A/V polo is already serving as a magnet for international production companies from the U.S., France and the Netherlands to name a few.

By spreading the polos around Capital Federal, the City of Buenos Aires seeks to improve the economic, social and urban development of some historically-overlooked BA barrios. For a closer look at the polos, their footprints and job creation forecasts, click here.



Recently we took a closer look at which neighborhoods in Capital Federal posted the strongest gains in average residential price increases in 2010. The study, which was carried out by Reporte Inmobiliario, focuses on the average price of existing 2 or 3-room apartment active listings in every BA barrio.

That Palermo topped the list for another year was not nearly as surprising as the 15-20% annual gains in four southern neighborhoods benefiting from increased investment from the City of Buenos AiresBarracas, Constitucion, Nueva Pompeya and Parque Patricios. Today we present a slideshow of the Top 10 neighborhoods along with aerial maps, population data and a side-by-side bar graph comparison of the Top 10.

For more information about real estate opportunities in Buenos Aires, download IncomeBA.

Buenos Aires Real Estate Price Change by Neighborhood

With two exceptions, BA barrios posting the biggest gains were in the extreme north and south.

A new analysis of real estate price variations for 2009-2010 shows the greatest year-over-year increases in Palermo and Liniers (20 to 25%) followed by 15 to 20% gains in Belgrano, Nunez, Paternal and four southern Capital Federal neighborhoods benefiting from increased business and infrastructure investment from the City of Buenos Aires: Barracas, Constitucion, Nueva Pompeya and Parque Patricios.

Barracas is home to the new Metropolitan Design Center and Parque Patricios is the site of the BA Tech District where an estimated 130 IT companies will be operating by year’s end. The only three BA barrios posting YOY decreases were Colegiales, Recoleta and Retiro.

The data are based on a study of existing apartments in Capital Federal, and according to Clari­n the average increase in price per square foot citywide was 7.74%, although the variations by barrio ranged from annual decreases of 5% to annual increases of almost 25%.

The majority of neighborhoods (30 of 47) like Boedo, Chacarita, La Boca, and San Telmo fell in the 10 to 15% increase category. Clarín also notes the average gap between highest and lowest price per square foot in individual barrios widened to 53% with Almagro, Caballito, Palermo and Retiro showing the greatest variation between minimum and maximum price per square foot.

Brokers surveyed anticipate demand for new units in 2011 will be strongest from investors and existing homeowners looking to trade up, as mortgages remain out-of-reach for first-time homebuyers in Buenos Aires and Argentina in general. (Full Story in Spanish)

For more information about Buenos Aires real estate opportunities, download the new issue of InvestBA Privada.

Puerto Madero View

Rose Colored Vista? BA brokers make their 2011 predictions, and InvestBA offers some balance.

La Nacion ends the year with a survey of local real estate brokers and developers (B&D) regarding their outlook and expectations for 2011. Considering the nature of their business, their collective forecast is predictably optimistic, so we’ll put our spin (IBA) on the list to keep things balanced. (Full Story in Spanish)

    1. B&D: The level of investor demand we have seen for the past year will continue in 2011, even though it is an election year. IBA: The importance of the upcoming elections cannot be diminished, especially given the unrest of the past few weeks. An administration that emulates Brazil and Chile in terms of encouraging DFI, promoting transparency, eschewing populist rhetoric and actually enforcing existing immigration and property laws will go a long way toward restoring confidence.
    2. B&D: The greatest demand will be among buyers looking for units under US$200,000, but there is a growing niche looking for more expensive offerings. IBA: The under-$200,000 market will be strongest in emerging barrios like Villa Crespo, Villa Urquiza and Barracas where that sum actually buys a decent-sized apartment. 2 and 3-room units with good locations/views in the Big 3 are well north of US$200,000.
    3. B&D: Values per square foot will not decrease, because the local real estate market is not fueled by cheap credit, but rather cash and real investment. IBA: The all-cash factor is an undeniable advantage of the real estate markets in Argentina and Uruguay, but no guarantee of a price floor. Cash or credit, if there is an oversupply of units in a given market (e.g., Puerto de Madero, Mar del Plata), prices per square foot will adjust accordingly.
    4. B&D: Land prices will continue rising, especially in Capital Federal where available lots are increasingly scarce. IBA: Agreed. Ditto for construction costs.
    5. B&D: Small units which can be resold quickly will be the most in demand. IBA: Cheaper is not necessarily better, and developers who only build 1 and 2-room units in the city’s most expensive neighborhoods are simply following the herd. The trailblazers will be recycling buildings and developing large units in BA’s emerging barrios with Subte access.

For more information about Buenos Aires real estate, download the new issue of InvestBA Privada.

Salón del Mercado Inmobiliario 2010

Brokers, developers and investors are all making predictions for 2011 at this year's SMI Expo.

With SMI, the country’s most important real estate Expo underway this week at La Rural, developers and investors are trying to make sense of the post-Nestor climate and predict the state of the market in 2011. iProfesional surveyed SMI attendees and discovered a general sense of optimism considering a weakening dollar, rising consumption and high inflation cocktail tilting the scales in favor of bricks and mortar.

Another key variable is the current commodity export boom which has led many Argentine farmers to plow their new-found soydollars (locally sojadolares) into residential and commercial real estate in major cities like BA, Rosario and Cordoba, a trend we touched on back in August (Interior Motives) and confirmed during our October Expo in Rosario.

Focusing locally on Buenos Aires, iProfesional offers a breakdown of average price per square foot for new and used properties. The Top Five BA barrios for used 2 and 3 room apartments based on price per SF are Recoleta ($208), Barrio Norte ($182), Belgrano R ($180), Palermo ($175) and Nunez ($157), while the most affordable surveyed were San Telmo ($134), Villa Crespo ($131), and Parque Patricios ($105).

General consensus at SMI is there are too many small units on the market which is why developers are beginning to announce projects with larger 3 and 4-room floor plans. Considering the scarcity of available land in areas like Palermo, new developments in 2011 are more likely to emerge in barrios like Colegiales, Villa Crespo, Almagro, Chacarita, as well as Barracas and Parque Patricios which are benefiting from the new Centro Metropolitano de Diseno and BA Tech District, respectively. (Full Story in Spanish)

For more information about Buenos Aires real estate trends, visit our archives and download the latest issue of InvestBA Privada.

 

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