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Palermo Real Estate: The Buenos Aires Barrio & Brand With The Greatest Demand

On January 26, 2012, In foreign investment, real estate, by InvestBA
Palermo barrio porteño

The diversity of properties and prices within Palermo makes it appealing for porteños and foreigners alike.

The Buenos Aires neighborhood of Palermo is the largest and most populated in the City of Buenos Aires. It also has the most gallerias and boutiques, the most museums and cultural centers, the most gourmet restaurants, the most Subte stations, the best hospitals, the most miles of Mejor en Bici paths and, of course, the most parks and sprawling green spaces. All of which makes today’s headline in Clarín seem like a statement of the obvious.

“Palermo is Increasingly More Expensive.” Wow! Imagine that. Real estate prices are rising in a neighborhood with all of those natural and man-made superlatives. And the second half of the headline is borderline hyperbole: “Palermo Prices Are Approaching Puerto Madero.”  No BA barrio real estate prices are approaching the Neighborless Nirvana of Puerto Madero ($441/square foot), including Palermo ($278/square foot).

The only “approaching” going on in the Buenos Aires real estate market would be Puerto Madero condo prices moving south from their 2009 peak of roughly $464/square foot ($5,000/m2), a trend we have followed for the past 18 months. And the $278/square foot number for Palermo is a blended average. As the article reluctantly reveals, the great thing about Palermo is the wide range of properties and prices within Palermo proper including Villa Crespo ($250/SF), Las Cañitas ($272/SF) and Palermo Soho ($317/SF).

And if you really think $278/SF is expensive, spend a long weekend looking at property in Ipanema or the Jardim Paulista. Or save the trip to Brazil and just take the word straight from Florianopolis or even UBS. Bottom line, you can’t look at Palermo real estate without mixing in some context, and you can’t blame more porteños and foreigners for wanting to live there. (Full Story in Spanish)

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

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La Nacion: 5 Buenos Aires Real Estate Trends and Predictions For 2011

On December 27, 2010, In real estate, by InvestBA
Puerto Madero View

Rose Colored Vista? BA brokers make their 2011 predictions, and InvestBA offers some balance.

La Nacion ends the year with a survey of local real estate brokers and developers (B&D) regarding their outlook and expectations for 2011. Considering the nature of their business, their collective forecast is predictably optimistic, so we’ll put our spin (IBA) on the list to keep things balanced. (Full Story in Spanish)

    1. B&D: The level of investor demand we have seen for the past year will continue in 2011, even though it is an election year. IBA: The importance of the upcoming elections cannot be diminished, especially given the unrest of the past few weeks. An administration that emulates Brazil and Chile in terms of encouraging DFI, promoting transparency, eschewing populist rhetoric and actually enforcing existing immigration and property laws will go a long way toward restoring confidence.
    2. B&D: The greatest demand will be among buyers looking for units under US$200,000, but there is a growing niche looking for more expensive offerings. IBA: The under-$200,000 market will be strongest in emerging barrios like Villa Crespo, Villa Urquiza and Barracas where that sum actually buys a decent-sized apartment. 2 and 3-room units with good locations/views in the Big 3 are well north of US$200,000.
    3. B&D: Values per square foot will not decrease, because the local real estate market is not fueled by cheap credit, but rather cash and real investment. IBA: The all-cash factor is an undeniable advantage of the real estate markets in Argentina and Uruguay, but no guarantee of a price floor. Cash or credit, if there is an oversupply of units in a given market (e.g., Puerto de Madero, Mar del Plata), prices per square foot will adjust accordingly.
    4. B&D: Land prices will continue rising, especially in Capital Federal where available lots are increasingly scarce. IBA: Agreed. Ditto for construction costs.
    5. B&D: Small units which can be resold quickly will be the most in demand. IBA: Cheaper is not necessarily better, and developers who only build 1 and 2-room units in the city’s most expensive neighborhoods are simply following the herd. The trailblazers will be recycling buildings and developing large units in BA’s emerging barrios with Subte access.

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

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2011 Predictions for the Real Estate Market in Buenos Aires & Argentina

On November 11, 2010, In buenos aires events, foreign investment, real estate, by InvestBA
Salón del Mercado Inmobiliario 2010

Brokers, developers and investors are all making predictions for 2011 at this year's SMI Expo.

With SMI, the country’s most important real estate Expo underway this week at La Rural, developers and investors are trying to make sense of the post-Nestor climate and predict the state of the market in 2011. iProfesional surveyed SMI attendees and discovered a general sense of optimism considering a weakening dollar, rising consumption and high inflation cocktail tilting the scales in favor of bricks and mortar.

Another key variable is the current commodity export boom which has led many Argentine farmers to plow their new-found soydollars (locally sojadolares) into residential and commercial real estate in major cities like BA, Rosario and Cordoba, a trend we touched on back in August (Interior Motives) and confirmed during our October Expo in Rosario.

Focusing locally on Buenos Aires, iProfesional offers a breakdown of average price per square foot for new and used properties. The Top Five BA barrios for used 2 and 3 room apartments based on price per SF are Recoleta ($208), Barrio Norte ($182), Belgrano R ($180), Palermo ($175) and Nunez ($157), while the most affordable surveyed were San Telmo ($134), Villa Crespo ($131), and Parque Patricios ($105).

General consensus at SMI is there are too many small units on the market which is why developers are beginning to announce projects with larger 3 and 4-room floor plans. Considering the scarcity of available land in areas like Palermo, new developments in 2011 are more likely to emerge in barrios like Colegiales, Villa Crespo, Almagro, Chacarita, as well as Barracas and Parque Patricios which are benefiting from the new Centro Metropolitano de Diseno and BA Tech District, respectively. (Full Story in Spanish)

For more information about Buenos Aires real estate trends, visit our archives and download the latest issue of InvestBA Privada.

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Hogar Dulce Hogar: Buenos Aires Homes Holding Value

On July 24, 2010, In foreign investment, real estate, by InvestBA
ba-homes

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 channel centers on apartments and condominiums, La Nacion 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 porteno homeowners don’t want to be sandwiched between high-rises. For that reason, areas like Almagro, Villa Crespo and Barrio Ingles where high-rise construction is prohibited are gaining in popularity, as are house-centric barrios like Villa Pueyrredon and Villa Urquiza which we 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 Nacion 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. (Full Story in Spanish)

For more information on BA real estate opportunities, download IncomeBA and the new issue of InvestBA Privada.

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Buenos Aires Outlet Shopping Attracting Bargain-Hunters

On July 18, 2010, In arts & entertainment, lifestyle, tourism, vanityba, by InvestBA
Villa Crespo

Dame Dos: BA's Villa Crespo has quickly become the epicenter of outlet shopping in Argentina.

It used to be that Argentines had to travel roughly 4,500 miles to South Florida or Orlando’s International Drive to indulge in deep discount retail therapy, but it seems the outlet concept has caught on fire in one BA neighborhood.

Villa Crespo has long been known as a solid, middle-class residential neighborhood, but the 2001 financial crisis left this BA barrio with several abandoned warehouses and residences. Today, according to Clari­n, many of those buildings are being bought for upwards of US$500,000 and converted into the Buenos Aires equivalent of Sawgrass Mills.

The phenomenon began five years ago when several large BA clothing stores started opening their first outlets around Gurruchaga and Aguirre. Today there are over 60 outlets in a four-block zone and close to 100 in a 10-block region. The retail pioneers like Hunor Gobos closed their stores on Avenida Florida five years ago, opened the first VC stores and have watched sales and shoppers grow every year since.

Clari­n says the Boom de los Outlets has really exploded over the last ten months, and the area is teeming with bargain-seeking tourists, especially Brazilians, Chileans and Uruguayans. Daniel Chain of the Buenos Aires Department of Urban Development says prices in Villa Crespo are still lower than Palermo but says they will continue rising, as Villa Crespo will be one of the prime beneficiaries of GCBA’s new infrastructure to control flooding. (Full article in Spanish)

For more information about upscale shopping and luxury living in Buenos Aires, download the new issue of InvestBA Privada.

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