Alcanzable? Rendering of a 2/1 Mar del Plata condo under construction and listed for $US98,000.

With the peak summer season officially three months away, there’s a general sense of unease down in Mar del Plata. Most economists are predicting the average summer vacation on the Argentine coast will cost 25% more than last year and 33% more to get there considering tolls were just increased on Routes 3 and 11 on Friday morning. But beyond the seasonal concern of hoteliers and restaurateurs, something larger looms in the background: new condominiums under construction. InvestBA reported the number “around 200″ back in May, and diario marplatense Noticias y Protagonistas (NyP) today confirms 215 and another 200 with approvals in-hand. So given the Argentine preference for real estate investment during inflationary periods like this, what is the problem? Simple math and absorption.

If you apply an 18-unit average to the 415 buildings, you’re looking at roughly 7,500 new construction condominiums coming online in the next few years in Mar del Plata. Such a number would be easily absorbed in BA, a city with 22x the population, higher average salaries and year-round demand from foreign buyers and renters alike, but Mardel presents a different dynamic and pool of potential purchasers. Fewer families there can afford the type of units coming out of the ground, considering the level of finish and amenities many developers are promising with their projects. For all these reasons, NyP’s Matías Frati says Mar del Plata would be the perfect proving grounds for the AEV-sponsored plan to lower borrowing costs and facilitate mortgage access for more Argentines. And with elections looming in 2011, the party that can weave this plan into their platform should have a huge advantage next October. (Full Story in Spanish)

For more information about coastal real estate opportunities in Argentina, download the October issue of InvestBA Privada.