911 Carrera at the Argentina Real Estate Expo

Small investors at the Real Estate Expo were looking for safer investment alternatives than a $200k 911 Carrera.

Ten days have passed since Expo Real Estate Argentina 2010 (Did you see our video?), which gave Clarín sufficient time to absorb all the information presented and formulate some conclusions of their own. Most notable was the fact small investors were really the stars of the event, significantly outnumbering large brokers, developers or architecture firms. “We’re not talking about people with huge international support or institutional funds backing them,” said one attendee, “We’re talking about individual investors looking for a safe alternative for investing their capital.” Just one small problem, Clarín opines. The small real estate investor walking the floor of the Exhibition Hall is as likely to influence the direction of the local market (in terms of product and pricing), as a small shareholder attending the Annual Meeting of a large publicly-traded company (with the possible exception of Berkshire Hathaway). Small real estate investors have concerns, needs and great ideas; yet, the push-push-push marketing by the local development community leaves them out in the cold. Don’t believe us? Try finding a local broker or developer with a blog, twitter account, or any type of social media plugin soliciting feedback.

Instead, our inboxes are cascading with broker e-mails with subject lines like INCREIBLE PROPIEDAD! or PARA INVERSORES! and the requisite 5MB attachments which we never open. As one very astute broker told Clarín, “The new way of operating should be less about having a big Rolodex and more about reading the market and having the capacity to segment your clients.” Which is exactly what we do @InvestBA. We blog in several languages, we promote lifestyle, we solicit feedback daily, and we know exactly which of our international clients would be interested in what types of real estate opportunities in Buenos Aires, Argentina and Uruguay. In short, Clarín characterized the presence and demands of the small investor as “nuevos desafíos,” but we view them as “nuevas oportunidades.” (Buyers, Sellers)

Mercedes-Benz Argentina

Automakers like Mercedes-Benz are benefiting from a luxury consumption boom in Argentina.

If March sales figures were any indication, 2010 will be a very good year for European luxury automakers exporting to Argentina. According to iProfesional; Audi, BMW, Mercedes-Benz and Porsche all posted double or triple-digit gains in units sold compared to March 2009. Several factors are contributing to the current boom: the falling Euro, pent-up demand after automakers slashed production and exports in ’09 and the introduction of several new luxury models in Argentina like the Audi A5 Sportback and the BMW 5-Series Gran Turismo. BMW posted the largest gain with a 142% increase in units sold; 44% of those were 300 series models. Porsche was second with a 100% increase in units sold, while Audi posted a 52% increase. Of the four main European luxury brands, Mercedes-Benz sold the most units (588) in March. And local analysts say the boom-de-lujo is not limited to autos; high-end consumer demand for fine watches, jewelry and whiskeys is also strong thanks in large part to the strength of the Brazilian economy which is being described as an umbrella for Argentine companies posting record exports of cars, appliances and textiles to consumption-minded Brazil. Inflation has also forced the hand of Argentine retailers who are offering attractive, peso-denominated payment plans on goods once reserved for the upper class like large-screen LCD televisions. iProfesional also credits the European automakers for offering attractive financing plans like BMW’s four-year, 0% interest plan and bringing entry-level model prices down to around US$30,000.  (Full article)

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