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With Rising Inventory Levels, Mar del Plata Strives for Real Estate Makeover

On December 9, 2010, In foreign investment, real estate, by InvestBA
Mar del Plata Under Construction

Mar del Plata hopes better marketing to Argentines and foreign investors will boost absorption rates.

The Summer Season is upon us, and Mar del Plata, the largest oceanside resort in Buenos Aires Province, is preparing for the annual influx of tourists. InvestBA has chronicled the recent wave of high-rise developments in Mardel, a town where condo supply will soon exceed demand, if it doesn’t already. In search of solutions, Noticias & Protagonistas sits down with local engineer Luis Silva who offers some alternatives.

The first one involves basic blocking and tackling with branding and marketing: “Our idea is to reposition Mar del Plata as a place for real estate investment. All their lives, people have wanted to own a place in our city for the summer or winter season. The idea is to get back to that, because we see investment heading to other parts of the coast, other cities, and we believe Mar del Plata is a good place for that investment.”

The second solution involves arithmetic: moving forward with the AEV-sponsored plan to lower borrowing costs and facilitate mortgage access for millions of Argentines outside of the ABC1 stratosphere. On the bright side, Silva says there is no credit-fueled buying bubble in Mardel or any other corner of Argentina because “the bubbles in markets like the U.S., Spain and Ireland were characterized by cheap credit and record annual price increases. In Argentina, however, there are no mortgages and real estate values have only risen in step with construction costs.” (Full Story in Spanish)

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

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Mortgage Plan Could Ease Marplatense Fears

On October 3, 2010, In foreign investment, real estate, by InvestBA
Mar del Plata condo

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.

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Mar del Penthouse: Coastal Boom for Mar del Plata Real Estate

On May 26, 2010, In foreign investment, real estate, tourism, by InvestBA
Mar del Plata waterfront view

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)

For more information about Buenos Aires investment opportunities, download IncomeBA and the new issue of InvestBA Privada.

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Bookings, Optimism Up on the Tango Coast

On November 30, 2009, In arts & entertainment, lifestyle, real estate, tourism, uruguay, by InvestBA
The beautiful Mar del Plata Golf Club is one of several courses along the Tango Coast.

The beautiful Mar del Plata Golf Club is one of several courses awaiting visitors to the Tango Coast.

With only three weeks before the first day of summer, La Nación surveys hotel owners and real estate brokers regarding bookings and optimism for the upcoming tourist season in Mar del Plata, Pinamar and Cariló. Reservations are up and optimism is high according to the article, thanks in part to the relative strength of the Brazilian real making Argentina’s beaches more affordable destinations for Argentines and Brazilians alike. The City of Mar del Plata is planning over 100 concerts and cultural events during the upcoming summer season, many of them free to the public. Just up the coast in Pinamar, a popular destination for the upper-middle class, hoteliers and property owners are trying to keep prices around the same level as 2008, and in Cariló, a destination La Nación describes as “untouched” by the recent economic slowdown, the trend among visitors is moving away from short-term rentals and toward “the purchase of homes, as well as new condos along the coastline.” And over in Punta del Este, Uruguay’s premier destination for the rich and famous, La Nación says confidence is high with brokers recommending property owners hold prices at 2008 levels to offset the 17% drop in the dollar’s value versus the Uruguayan Peso in 2009.

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IDEA: Argentine Executives Searching for Answers on Global Copmetitiveness

On November 3, 2009, In competitiveness, foreign investment, visionaries, by InvestBA
Attendees of the 45th Annual IDEA Conference in Mar del Plata seek answers on global competitiveness

Attendees of the 45th Annual IDEA Conference seek answers on global competitiveness

One of Argentina’s most prestigious and probing private sector gatherings took place last week at the 45th Annual IDEA Conference in Mar del Plata.

Over 800 Argentine executives met in the coastal resort town to ponder one giant question: Why is Argentina not more competitive on the global stage? Electronic voting commenced on the Conference’s Opening Day…hands on buzzers…top five answers are on the board.

And in a pro-capitalist blast across the bow of the ruling administration, an overwhelming 60% of those in attendance said “Public policies that take the life out of macroeconomic gains” were the primary obstacles hampering Argentina’s global competitiveness. According to La Nacion, another 30% of respondents shared the blame with their political rivals and chose, “The Inability of Politicians and Businessmen to Adapt to the International Environment.”

The IDEA debate and self-criticism comes on the heels of the World Economic Forum’s Global Competitiveness Report 2009-10 which ranked Argentina 85th out of 133 countries surveyed. According to the Report, the primary negative hurting Argentina’s overall ranking is the lack of confidence in the ethical standards of many of the country’s politicians. Julian Rooney, VP of Public Affairs at Minera Alumbrera offered a positive spin at IDEA ’09, “Argentina has incredible opportunities to keep growing. But we need to maintain clear (i.e., political) rules of the game in the long-term.”

For more information on investment opportunities in Argentina, download the new issue of InvestBA Privada.

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