New Construction Condos in Buenos Aires Appreciate 15%; Existing Units Rise 11%

Patrick Archer aruba, average prices, foreign investment, real estate

The average annual appreciation of new construction condominiums in the City of Buenos Aires was 15% last year compared to a 9% average gain in 2010, according to a new study from Reporte Inmobiliario.

Five of the Buenos Aires barrios with the highest average increases were Palermo Nuevo (+29%), Palermo Sur (+20%), Villa Urquiza and Flores (both 19%) and Palermo Soho (+16%).

In Palermo Nuevo, the 34-block barrio bordered by Colonel Diaz, Las Heras, Libertador, and Sarmiento, the 29% average appreciation (US$232 to US$299 per square foot) of new units delivered in 2010 has much to do with market demand and the lack of new construction in 2011.

A similar story played out last year in Palermo Sur, the university barrio bordered by Cordoba, Gallo, Scalibrini Ortiz and Soler, where average price per square foot rose 20% from US$196 to US$234 per square foot.

Flores and Villa Urquiza, where average appreciation was 19% in 2011, are two of the more affordable Buenos Aires neighborhoods with new construction apartments, new Subte stations in 2011 or 2012, parks, restaurants and services. In 2011, the average price per square foot in Villa Urquiza rose from US$163 to US$195 and in Flores the increase was from US$151 to US$181.

In Palermo Soho, average appreciation of 16% in 2011 was almost identical to the 15% increase posted in 2010. Depending on your source, average price per square foot in Palermo Soho is somewhere in the low-to-mid US$300’s, and the abundance of new construction (59 residential buildings in 2011) should keep average prices increases from getting away from market demand this year. (Full Story in Spanish)

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