This 3/2 BA residence with 1,800 square feet and a private garden is on the market for $269,000.

While most of the analysis and data in our Real Estate section centers on apartments and condominiums, La Nación reminds us of the often overlooked values lurking in neighborhoods throughout Buenos Aires: homes. Patient and discriminating househunters can often find attractive, reasonably-priced homes scattered in and around the multiple new construction mid-rises in BA. When considering the purchase of an existing home in BA, zoning is often the top consideration, because porteño homeowners don’t want to be sandwiched between high-rises. For that reason, areas like Almagro, Villa Crespo and Barrio Inglés where high-rise construction is prohibited are gaining in popularity, as are house-centric barrios like Villa Pueyrredón and Villa Urquiza which InvestBA profiled earlier this year. In these neighborhoods, one can buy a quality three-bedroom home with a garage and garden for around US$200,000 to $250,000. La Nación says cost per square foot is one of the most attractive metrics for those considering a BA home purchase, while other advantages include the option of building additions, private spaces like terraces and gardens with outdoor grilling areas and no HOA fees for common expenses and building maintenance. Given the high demand and relatively low inventory level of existing homes in BA, building a new home is often a good alternative, but lot prices in a given neighborhood are the key factor in the build vs. buy analysis. To read the full article in Spanish click here, and to learn more about investment opportunities in Buenos Aires, download the July 2010 edition of InvestBA Privada.

Who needs a boom? "Estabilidad" suits builders and buyers in the Buenos Aires real estate market just fine.

Recent headlines regarding Buenos Aires real estate sales activity have been improving steadily this year, and La Nación says builders are starting to feel equally optimistic. During the first five months of 2010, the construction industry posted a 10% increase in new projects under development, while the sale of condominiums and single-family homes advanced 7.1%, according to the Universidad Argentina de la Empresa (UADE). The UADE’s prestigious Economics Institute compiled the data and forecast “stability” across-the-board for real estate sales, median prices and inventory of rental units. The analysis of all construction segments found the largest January-May increases in three sectors: oil and gas construction (+41%), road construction (+10.4%), and housing construction (+9%). The UADE study offers a detailed analysis of the local real estate market where new housing inventory grew 7.1% in Capital Federal and Greater Buenos Aires. The rise in inventory was accompanied by an increase in median prices, especially in the Northern Corridor of Buenos Aires, where new condominium prices gained 9.7% in U.S. dollars compared to the same five-month period in 2009. Median prices of existing inventory in BA posted a 9.3% gain. The greatest increase took place in the Recoleta neighborhood where the average price per square meter for new construction units rose 11.2%. Other BA barrios popular with foreign buyers posted more modest annual price increases including Palermo (+1.5%), Belgrano (+1.2%) and Núñez (+1.2%).  For more information about Buenos Aires real estate opportunities, search our archives and download the July 2010 issue of InvestBA Privada. (Full Story in Spanish).

Back from the depths of 2009, BA's real estate sector posted a 41% gain in transactions in May.

A story we’ve monitored closely since the end of last year is the recovery of the BA real estate sector. After an abysmal 2009, December finally offered a positive note; a trend that continued during the first four months of this year. Now the newly-released housing data for May suggest BA’s property rebound is in full swing. According to the  BA Notary Association, the sale of properties jumped 41% in May compared to a year ago, while the value of all real estate transactions rose 91%. Cronista says the second statistic reflects the large number of buyers taking delivery of high-end units that have been under construction for the last 2-3 years. The 5,165 real estate transactions in May were valued at 1.908 billion pesos argentinos or US$484.82 million. While local analysts say signs of a recovery abound, it’s worth remembering the year-over-year basis of comparison: the first six months of 2009 was one of the worst periods for BA real estate. As the global financial crisis gathered steam, confidence was shattered and buyers were scarce in the Southern Cone. Now a year later, a rare global commodity has returned to Argentina and Uruguay: optimism. The May housing numbers show units priced between US$60,000 and US$220,000 accounted for 38% of all sales, while units priced below $60,000 represented 56% of all transactions. The sale of units priced above US$220,000 doubled from 3% last May to 6% in May 2010. (Full Story in Spanish) For more information about Buenos Aires real estate trends, see our archives or download the July issue of InvestBA Privada.

Local officials anticipate another record year of residential construction in Maldonado, Uruguay

The Uruguayan coastal state of Maldonado—home to popular beach side destinations like Punta del Este and José Ignacio—is poised for another record year of new residential development, according to state development and tourism officials. In an interview with El País, the Director of City Tourism for Maldonado Horacio Díaz says in January and February, developers submitted approval requests for 170,000 m² of new residential construction. At the current rate, Maldonado forecasts 400,000 m² of new projects will be submitted for approval by year-end 2010. If that forecast is valid, the increase in new construction requests would exceed 2009 by 14.2%. In 2009, developers submitted approval request for 350,000 m² of new construction, of which Maldonado approved 290,000 m² or 83%. Contrary to popular belief, most of the new construction requests in 2009 were for single-family homes (63%) vs. multi-unit dwellings (37%), of which only 10-12% were high-rise condominiums. In the same article, El País points to the report we shared last month regarding the dynamic nature of the Maldonado real estate market vis-a-vis Buenos Aires. Over a recent 12-month period, the ratio of total area: $ sales was almost identical for both Buenos Aires (200,000 km² : US$4.26MM ) and Punta del Este (20,000 km² : US$437MM). For more information about Maldonado real estate opportunities, visit our archives our download the July 2010 edition of InvestBA Privada.

Leyenda Urbana: La Nación debunks the Top 10 Myths about the Puerto Madero neighborhood.

Puerto Madero is a favorite real estate topic on InvestBA for a variety of reasons. Superlatives make for interesting reading, and Puerto Madero (PM) has certainly generated its fair share since incorporation and waterfront transformation commenced in November 1989. La Nación throws a skeptical eye at those superlatives and culls the Top 10 Myths about Puerto Madero. #1.) It’s the youngest neighborhood to be incorporated in BA. False. Parque Chas in December 2005. #2.) It’s the most expensive BA neighborhood per square meter (sqm). Debatable. While PM units sell for an average of $3,800/sqm and some towers fetch $6,000/sqm, the average sales price in Barrio Parque is $4,750/sqm. #3.) Units with river views command higher prices than city views. False. Most owners surveyed return from the office at dark and would rather look at La City than La Plata Oscura. #4.) There are more offices than residential units.  False. While true initially, that trend began to reverse in 2005 and today the number of residential sqm (1.303MM) is practically double the amount of office space (659K). #5.) Foreign buyers own the majority of new high-rise units. False. 70% of the buyers are still Argentines, although that is changing as more Europeans shift funds out of the battered Euro-zone and more Americans discover the quality of life and cost advantages of living in Buenos Aires, Argentina and Uruguay. For the complete Top 10 List in Spanish, visit La Nación or download InvestBA Privada for the English version.

Buenos Aires may have 300x more residents, but thousands of them own homes in Punta del Este.

The first round of the Copa del Mundo is over for local favorites Argentina and Uruguay, and both teams are safely through: Uruguay will face South Korea on Saturday, and Argentina will face Mexico on Sunday. Unfortunately, the only way the two teams would face each other would be in the World Cup final which seems highly unlikely. So today Reporte Inmobiliario (RI) offers the next best thing: the Copa del Condo with Argentina’s capital city squaring off against Uruguay’s most popular beach resort. The Argentine journal sizes up Punta del Este in terms of total foreign investment, as well as its similarities and differences with Buenos Aires. The Punta del Estate Real Estate Association says $934 million in transactions took place between March 2009 and February 2010.  The majority of the deals were done in Punta del Este ($437M or 48%) followed by Maldonado ($175M or 19%), the Rural Zone ($128M or 13%), and La Barra ($45M or 5%). Over the same 12-month period, over $4.2 billion in deals were done in Buenos Aires or 4.5x as many as PdE, which shows how dynamic Punta’s market is when you consider BA has 300x the population. Not surprisingly, the summer months (Dec.-Feb.) are the months when most deals are done in Punta del Este. In closing, RI says recent high profile lot acquisitions by U.S. investors will be one of the topics discussed at their July Conference. (Full article in Spanish)

U.S. investors are assembling large parcels in beautiful areas of Uruguay like José Ignacio (above) & Garzón.

Today’s headlines in Uruguay tell a familiar story: large, undeveloped parcels changing hands for record prices. The twist these days is who’s doing the buying. For fifteen years, Argentine investors held the record for the most expensive parcel acquisition in Uruguay:  over $9 million for a 10-acre beachfront parcel in Punta del Este in 1990, the current site of Hilton’s Conrad Resort & Casino. Now an American can lay claim to the title of Uruguay’s priciest land deal and, speaking of Punta casinos, it seems he doubled down. The U.S. investor in question just bought a prime, 37-acre parcel in the beach-side oasis of José Ignacio for $15 million, or approximately $400,000 per acre. That deal comes on the heels of the $12 million paid for a similar sized, adjacent parcel in José Ignacio. Now do the math and put it in historical perspective. Almost 75 prime coastal acres for $27 million or $360,000 per acre or roughly 70% less than the Argentines paid for the Conrad parcel 15 years ago. The deals are even sweeter when you realize the smart money in Uruguay is moving north of Punta del Este up the Uruguayan coast and further inland where population densities are lower and exclusivity reigns. After some glowing reviews and photo essays by the Wall Street Journal and New York Times, U.S. investors are now buying in trendy Garzón. The Journal sums up the rural chic attraction of Uruguay’s interior perfectly: “El Garzón has a dirt road, stray dogs and a $48 ravioli.” For more information about Uruguay real estate, download InvestBA Privada or contact us directly.

From ultra-luxury to fractional ownership to upscale boutiques, hotel opportunities abound in BA.

Foreign buyers. Global brands. Mega-deals. Few sectors of the local economy can compete with the luxury hotel business for headlines and superlatives. Coveted parcels are the object of bidding wars, while others are selling for as much as $21 million. Today Cronista gives a sweeping analysis of el sector hotelero in both Argentina and Uruguay while highlighting emerging trends like condo-hotels, green projects and fractional ownership. Brazil may be hosting the World Cup in 2014, but by then Argentina will have a leg up in terms of luxury properties. Alvear will christen—not one—but two new BA hotels, a St. Regis will rise in Puerto Madero, Nordelta will welcome an InterContinental and, as discussed in April, several new luxury boutiques will open in Palermo and Recoleta. Major chains are also capitalizing on the sheer beauty and natural amenities in destinations like Iguazú (Hilton, Loi Suites), Bariloche (Sofitel), Córdoba (NA Concepts), Brandsen (HoJo) and Tandil (Mülen). And while the four and five-star projects generate the most PR, the most active sector in terms of units under construction and fractional units for sale is the Sub-4 (star) sector. Projects like La Defensa, Hollywood Suites and Dazzler San Telmo are prime examples of the type of in-demand condo and fractional opportunities awaiting foreign developers today and foreign travelers tomorrow in Buenos Aires, Montevideo and other regional tourist destinations. For more information on local sector opportunities, download a free copy of our premium newsletter, InvestBA Privada.

Luxury projects are being built in Montevideo neighborhoods like Punta Carretas, Pocitos and Malvín

Earlier this month InvestBA reported on the recent gains in the Buenos Aires real estate market: closings up 37%, total value of all sales up 57% and median prices up 15%. Now the news from across the river is equally encouraging and offers more evidence of regional strength following a weak 2009 for both countries. Uruguay’s National Statistics Institute released housing data for the first quarter of 2010, and the total number of closings is up 18% compared to 1Q09. The total dollar amount of all 15,015 real estate transactions in the first quarter of 2010 also rose 32% compared to 1Q09; yet, when adjusting from U.S. dollars to Uruguayan pesos the increase was a more modest 9.3%. (As evident on this XE.com chart, the U.S. dollar has fallen 18% against the peso over the past year.) Looking at the most recent month of available data, the most real estate closings took place in Montevideo (34%), Maldonando (13%), Canelones (12%), Cerro Largo (6%) and Colonia (5%). The median price per square meter of all transactions in the first quarter rose 6% over 1Q09, while the Construction Cost Index (construction costs less land value) posted a modest 5% gain over 1Q09. News was also positive for property owners in the Uruguay rental market, as average rental prices rose 6% in the first quarter to US$342. The three most expensive markets for renters were Punta Carretas, Pocitos and Malvín with median rental rates of US$418, $394 and $387, respectively. (Full Report PDF in Spanish)

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)