Buenos Aires is growing up…literally. We saw hints of it last year with the new construction activity heat maps and the 70% bump in new buildings in Palermo Soho. But now we have full-year 2011 proof thanks to Reporte Inmobiliario (RI).
According to RI, the number of new construction permits in the City of Buenos Aires jumped 50% in 2011 compared to 2010, and the majority of those permits were for mid and high-rise residential buildings. The City approved almost 27 million square feet of new construction last year throughout Capital Federal. The most new construction permits were issued in Palermo (10%) followed by Belgrano, Villa Urquiza and Caballito.
The robust new construction numbers stand in stark contrast to the extremely bearish and completely inaccurate projections from BBVA analysts last July that a.) Buenos Aires real estate activity was flattening and b.) a “gradual decline” in new construction permits was inevitable. In their defense, the BBVA analysts felt election year uncertainty would cool new construction requests. (Also in their defense, most BBVA analysts are in Spain which is pretty depressing altogether right now.)
RI says the bulk of new construction permit requests were for one and two-room apartments, the most popular apartment size in Capital Federal. Fewer than 5% of all permit requests were for units with more than two bedrooms. (Full Story in Spanish)
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