best premium wordpress themes

How Does Buenos Aires Real Estate Compare to Brazil?

On June 10, 2011, In a-bric, foreign investment, real estate, by InvestBA
Real Estate Prices in Rio de Janeiro, Sao Paulo and Buenos Aires

Click the image above to view a mash-up of data from UADE and Brazilian Investment Guide

A new report out this month from UADE’s Economics Institute gives us a good feel for average real estate prices for the 14 most popular neighborhoods in Buenos Aires.

And while local media chose to cherry-pick the highest number published in the report (Recoleta’s US$262 per square foot for 2-room apartments) the reality is that the median price was US$186 per square foot with barrios like Palermo and Belgrano coming in around US$226 and US$219, respectively.

And while barrio-by-barrio comparisons can be useful, sometimes regional comparisons are more enlightening, especially for alarmists who say a specific Buenos Aires neighborhood is expensive…relative to what? How about the two largest cities in Brazil? Fortunately, Ruban Selvanayagam’s Brazil Investment Guide is out this month with the most detailed analysis imaginable of real estate prices in Sao Paulo, Rio de Janeiro and three other major Brazilian metros.

The article titled, Brazil’s Real Estate Prices are the Highest in the World, kind of sets the tone for the analysis which show new residential construction in the best neighborhoods of Rio and Sao Paulo cost anywhere from US$200 to $500 more per square foot than new construction listings analyzed by UADE in Recoleta, Palermo, Nuñez and Belgrano. (Click image above for larger chart).

Now factor in the Quality of Living rankings from Mercer and International Living, which consistently put Buenos Aires ahead of all Brazilian metros (See Citi Global Megacities) and it’s easier to appreciate BA’s affordability compared to some of the fastest growing real estate markets in Brazil.

For more information about Buenos Aires real estate opportunities for foreign investors, download IncomeBA. (Versao em Portugues)

2 Comments
Leave A Response

Tagged with: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
 

Average BA Salary Would Buy 5SF Apartment

On March 28, 2011, In lifestyle, real estate, by InvestBA
Se necesitan 100 sueldos para adquirir la casa propia en Buenos Aires

The average salary in BA would buy somewhere between 4-6 square feet of new construction.

A new report from the Economics Institute at the Universidad Argentina de la Empresa (UADE) suggests the average salary in Buenos Aires is enough to buy five square feet of a new construction apartment in the City of Buenos Aires. In other words, it would take 100 salaries for the average family to be able to buy their own 500-square-foot apartment in Buenos Aires, or approximately eight years of salary if one were able to save 100% of their earnings.

The Building & Real Estate Market Report looked at local salary purchasing power in terms of current new construction real estate prices in different BA barrios in December 2010. Depending on the neighborhood, the average salary would buy roughly 4.7 square feet in Palermo or Belgrano up to 5.9 square feet for properties in more affordable yet high demand areas like Caballito and Almagro.

With presidential elections on the horizon, mortgage relief and meaningful reform need to be more than just a campaign promise this year for the millions of middle class families who don’t qualify for a mortgage and simultaneously face 15-25% rent increases in 2011. According to the AEV estimate, a more affordable mortgage system could increase the pool of potential buyer households in Argentina from 140,000 to 1.2 million. (Full Story in Spanish)

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

2 Comments
Leave A Response

Tagged with: • • • • • • • • • • • • • • • •
 

Flight to Value Boosting Buenos Aires Real Estate Values

On September 6, 2010, In foreign investment, real estate, by InvestBA
Palermo Soho Condo

A 2/2 in Palermo Soho on the market for $199,500 or $253/SF, right in line with UADE's findings.

The famous “refugio de valor” or flight to value had a positive impact on Buenos Aires real estate values in July, according to a new study from the Universiad Argentina de la Empresa (UADE). The study examined real estate classified ads published both online and in broker publications during the month of July and found price increases between 1 to 6 percent, depending on the neighborhood and the type of residential listing.

In terms of the Big 3, Belgrano, Palermo and Recoleta, the average price per square meter rose to US$2,624 per square meter or US$243 per square foot. Of the 12 neighborhoods examined in the report, the most affordable listings were located in Villa Devoto where new construction was being offered for an average of $151 per square foot and $145 for existing properties.

Besides the recent price increases, the UADE report looked back four years and found prices increases are actually slowing down. Today’s 7-8% average annual increase in real estate values is still encouraging, although not as robust as the 15% annual appreciation witnessed between 2006-08. (Full Story in Spanish)

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

1 Comments
Leave A Response

Tagged with: • • • • • • • • • • • • • • • • • • • • • • • • • • •
 

Estabilidad: Buenos Aires Construction Activity Rises 10%

On July 20, 2010, In foreign investment, real estate, by InvestBA
BA Construction

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 Nacion 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 Nunez (+1.2%).

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

3 Comments
Leave A Response

Tagged with: • • • • • • • • • • • • • • • • • • • • •
 
 

Bariloche

Mendoza

Uruguay

© 2011 InvestBA.com