Buenos Aires Skyline

New rankings from Mercer & Jones Lang LaSalle shed light on office space & expat affordability.

Commercial office space in Buenos Aires now ranks among the world’s Top 20 most expensive markets, according to a new study from Jones Lang LaSalle.

The analysis, prepared for Brazilian business publication Valor, compared office rents in 98 of the world’s largest metros in the U.S., Europe, Asia and South America. The #20 ranking places Buenos Aires ahead of cities like Bombay (#21), Toronto (#24), and Mexico City (#25), yet well behind the two most expensive markets in Latin America, Rio de Janeiro (#6) and Sao Paulo (#9).

The ranking made headlines in Brazil yesterday considering both cidades were in the Top 10, fueled in part by a roaring economy and record-setting acquisitions in both cities like SP’s Icon Faria Lima (US$351 million) and Rio’s Ventura Towers (US$398 million).

The analysis says average rents in both Brazilian cities are now more expensive than Manhattan, with an average range between $55-65 per square meter and some marquee buildings fetching closer to $85 per square meter. The Brazilian frenzy makes BA rents look affordable by comparison, and La Nacion reminds readers of a new Mercer global study which ranks BA #161 among 214 cities in terms of an affordability index for expats which factors in housing, transportation, clothing, food, and entertainment. (Note: the lower the number, the more affordable the city). Conversely, Brazil’s dynamic duo lie at the opposite end of the spectrum with Rio de Janeiro and Sao Paulo checking in at #29 and #21, respectively. (Full story in Portuguese)

For more information on Buenos Aires real estate, visit our archives and download the new issue of InvestBA Privada.

Brasil Ahora Tourism Promotion seeks to attract more visitors from Argentina and the U.S.

Argentina sent 1.2 million tourists to Brazil in 2009, while the United States sent over 600,000.

At the height of the summer travel season, we posed the question, Where do Brazilians go when they need a little D&R (Descanso e Relaxmento)? Judging by the Portuguese-speaking throngs on the slopes of Bariloche or in the trendiest parrillas in Puerto Madero, we surmised, Argentina was a safe bet.

Now the flip-side of that tourism coin: A record number of Argentines visited Brazil last year, and a major public/private sector marketing campaign is priming the tourism pump for more in 2010.

Over 1.2 million Argentines visited Brazil in 2009, a 19% increase over 2008, in a year when total visitors to Brazil actually declined slightly by 5%. Argentines account for 1 out of every 4 visitors to the Mercosur neighbor followed by the United States which sent over 600,000 travelers to Brazil, roughly 12% of the 4.8 million total visitors.

In an exclamatory effort to keep a good thing going, the Brazilian Ministry of Tourism, Embratur, recently launched an aggressive marketing campaign called ¡Brasil Ahora! (Brazil Now!). Full-page advertisements in Clari­n and La Nacion promote discounted vacation packages to beautiful Brazilian destinations like Florianopolis, Salvador, Buzios and Pipa.

Fortunately for Argentines, there is no shortage of flights from Ezeiza and Aeroparque. Major airlines like GOL, TAM and Aeroli­neas Argentinas are participating in the ¡Brasil Ahora! promotion, while short-haul carriers like Pluna and Buquebus offer attractive airfare options. Embratur says the goal of the campaign is to introduce foreign travelers to new Brazilian destinations in the years leading up to the 2014 World Cup.

According to the government report, of the 1.2 million Argentine visitors, 77% entered Brazil for pleasure, the average stay was 11 days, and Florianopolis was the #1 destination.

Buenos Aires ranked 5th in the UIAI attractiveness survey

Buenos Aires makes the Top 5 in new survey, but Brazil dominates with 3 of the Top 10 spots.

If Buenos Aires were a woman, how attractive is she compared to the other municipal babes in Latin America? It might sound like the premise for a really bad reality TV show, but it was actually the focus of a serious study on foreign investment undertaken by a Chilean consulting firm and the research arm of a major Colombian university.

According to Portafolio.com, the Urban Investment Attractiveness Index (UIAI) sought to measure the degree of attractiveness of cities across Latin America based on factors like a.) the ability to attract foreign investment, b.) the quality of climate for foreign investors, c.) the strength of local stock markets, and d.) the prospects for future growth.

And while Buenos Aires wasn’t the first mina chosen by the bachelor, she wasn’t exactly voted off the island in the first round. (That was Venezuela.) In fact, BA came in a respectable fifth place overall in the UIAI survey of 48 cities. BA and fourth-placed Rio de Janeiro were credited with their status as “famous world cities and the strong presence of multinationals.” And Rio wasn’t the only Brazilian cidade feeling the love.

In choosing the #1 city overall, the UIAI said Sao Paulo was the hottest woman at the rose ceremony. The praise, which probably sits as well with Argentines as Time’s selection of Lula today as the world’s most influential leader, was full of superlatives: “Sao Paulo combines the best conditions for foreign investment given the importance of the market, the climate for investors and the diversity of investment options.” Now that’s hot.

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

 

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