Real estate market activity in Buenos Aires may have slowed given the scarcity of dollars, but average prices of existing condominiums in Buenos Aires posted another double-digit gain in 2012.
“The Price of Existing Properties Rises Even Without Sales” is the headline of Gustavo Grimaldi’s analysis of new market data from Reporte Inmobiliario which shows the average price for a 2 or 3 room Buenos Aires condo rose 16.4% compared to this time last year.
The average price per square foot in Buenos Aires rose from US$155 in 2011 to US$171 in 2012, and average prices have now risen 23% in the past two years. (Click for 2002-2012 graph)
Reporte Inmobiliario’s German Gomez Picasso puts the numbers in perspective: “I believe the prices are moving with a rising inertia that comes with seventeen months of currency controls and a fall in activity. Prices keep rising, and it’s obvious that owners have little need to sell.”
In other words no mortgages, no debt, no subprime crisis, no speculation, no new construction, no problems finding short or long-term tenants and no more attractive alternatives for investing in Buenos Aires than bricks.
According to the report, the top three BA barrios in terms of highest average price per square foot were Recoleta (US$262), Palermo (US$259) and Belgrano R (US$238). The most affordable were Parque Avellaneda (US$141), La Boca (US$139), Liniers (US$135) and Nueva Pompeya (US$108). (Full Story in Spanish)
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