Authored by the expert who managed and guided the team behind the Argentina Property Pack
Everything you need to know before buying real estate is included in our Argentina Property Pack
What do the latest numbers reveal about Argentina’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Argentina, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Gross rental yields in Buenos Aires average 4.88%, with a range of 3.4% to 6.38%
The gross rental yields in Buenos Aires average 4.88%, ranging from 3.4% to 6.38%.
Argentina's economic and financial challenges in 2023 and 2024 have significantly influenced these yields. Property prices and rental income have dipped, yet Buenos Aires remains a viable market for investors.
Despite these hurdles, the rental market offers moderate returns, reflecting a stable real estate environment. While not sky-high, these yields provide consistent returns, appealing to those seeking stability.
Investors find comfort in the predictability of Buenos Aires' rental market. The city's real estate offers a balance between risk and reward, making it a strategic choice for portfolio diversification.
For those considering property investment, Buenos Aires presents an opportunity to tap into a market with steady growth potential. The city's unique blend of culture and commerce continues to attract both local and international interest.
Sources: Global Property Guide
2) Banco Nación aims to disburse US$4 billion in mortgages over the next 4 years
Banco Nación plans to disburse US$4 billion in mortgages over the next four years, starting in 2024.
The "+Hogares con BNA" initiative is designed to make homeownership more accessible in Argentina. With a fixed interest rate of 4.5% for primary residences, the program offers favorable terms for borrowers. Additionally, an "inflation cap" through the CVS index is available, which helps shield borrowers from inflation spikes.
From May 20, 2024, the program will support a range of housing activities. Whether you're looking to buy, change, construct, refurbish, or expand a home, or even acquire a second home, this initiative has you covered. Banco Nación has already seen a high volume of loan applications, showing strong interest in the program.
With these offerings, Banco Nación aims to boost the housing market and provide more opportunities for people to own homes. The program's comprehensive approach addresses various housing needs, making it a versatile option for potential homeowners.
Sources: Banco Nación Press, La Nación
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Argentina versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Properties under USD 100,000 in CABA face double the competition
In 2023 and 2024, properties in Buenos Aires priced under USD 100,000 are in high demand.
These affordable homes are attracting a lot of attention, with demand pressure ranging from 17% to 55% higher than for properties priced between USD 100,000 and USD 175,000. This means more buyers are competing for these budget-friendly options.
Interestingly, properties around the USD 100,000 mark make up about 40% of the total demand, showing just how popular they are. In CABA, the competition is fierce, with demand being 103% higher than the average in the AMBA region, effectively doubling the competition.
For those looking to invest, this trend highlights the appeal of lower-priced properties, especially in bustling areas like CABA. The increased interest in these homes is reshaping the real estate landscape, making it a hot topic among potential buyers.
As the market evolves, understanding these dynamics can be crucial for making informed decisions. The surge in demand for properties under USD 100,000 is a clear indicator of shifting buyer preferences.
Sources: Clarín, La Nación, Perfil
4) A studio apartment in Buenos Aires is now priced just under $100,000
The real estate market in Buenos Aires is bouncing back, with prices recovering from historic lows in 2023 and 2024.
In April 2024, the Real M2 Index, a key indicator of property values, rose by 2.14% compared to the previous month. This uptick signals a positive shift in the market, making it an intriguing time for potential buyers.
For those eyeing studio apartments, the price per square meter was recorded at $1969. This means you could snag a studio for just under $100,000, depending on its size and where it’s located in the city.
Moreover, the number of real estate purchase deeds in Buenos Aires jumped by 32.2% in April 2024 compared to April 2023. This surge in transactions highlights a growing demand, which could further impact pricing trends.
Such a significant increase in transactions suggests that buyers are regaining confidence in the market, potentially leading to more competitive pricing.
With these dynamics at play, investing in Buenos Aires real estate might be a smart move, especially if you're considering a studio apartment.
Sources: JJ Group, International Living
5) Negotiation discounts on property prices fell to 4–5%, nearing historical averages
In 2023 and 2024, negotiation discounts on property prices in Argentina decreased to 4–5%, aligning with historical averages.
This shift is primarily due to reduced negotiation margins, as highlighted by organizations like Reporte Inmobiliario and RE/MAX Argentina. By July 2024, the negotiation range was consistently at 5%, reflecting a trend of lower margins since 2020.
Historically, Argentina's negotiation margin has hovered around 5%, indicating a return to normalcy. The narrowing gap between the initial listing price and the final sale price suggests that property prices are stabilizing, and possibly even increasing.
Market trends reveal that the average negotiation margin has been below 5% for several months, showing a shift in market dynamics. Sellers are less willing to reduce prices, and buyers have fewer chances to negotiate significant discounts.
Current market conditions in Argentina also play a role. With property prices reaching historical highs, sellers are less inclined to lower their prices, making it difficult for buyers to secure large discounts.
Sources: La Nación, El Cronista
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6) 80% of Argentinians use marketplaces like Mercado Libre to search for properties
Argentinians are increasingly turning to online marketplaces for property searches, with 8 out of 10 people using platforms like Mercado Libre.
This shift is driven by the digitalization of the real estate market, making it easier and more convenient to find properties online. Mercado Libre Inmuebles stands out with over 600,000 active property listings and attracts 22 million monthly visits, becoming a central hub for property seekers.
Partnering with more than 5,500 real estate agencies and developers, Mercado Libre has solidified its role in transforming how Argentinians search for homes. This collaboration ensures a wide variety of options for potential buyers, enhancing their search experience.
Digital advertising plays a crucial role in this transformation. In 2024, real estate agencies using digital ads saw a 52% increase in visibility, thanks to solutions from Mercado Ads. This boost in visibility helps buyers find properties more efficiently.
Mercado Ads has significantly improved the visibility and consideration of property listings, making it easier for potential buyers to find what they're looking for. This improvement is a game-changer for both buyers and sellers in the real estate market.
Sources: Clarín
7) Only 1.57% of available real estate is being sold
The real estate market in Argentina is experiencing a significant challenge, with only 1.57% of the total stock of real estate being sold.
In Buenos Aires, the situation is particularly stark. The city is facing a growing supply overhang, meaning there are far more properties available than there are buyers interested in purchasing them. This imbalance is largely due to weak construction activity, which has failed to stimulate demand.
To give you an idea, the total stock of real estate in Buenos Aires is over 163,000 units. At the current rate of demand, it would take six years to sell all the properties available. This is a stark contrast to the historical average, where it typically took only two years to sell the same amount of properties.
For potential buyers, this means there are plenty of options to choose from, but it also indicates a market that is not moving quickly. The slow pace of sales suggests that buyers have the upper hand in negotiations, as sellers are eager to offload their properties.
However, this sluggish market can be frustrating for sellers who are looking to make a quick sale. The imbalance between supply and demand is a key factor contributing to the slow turnover of properties.
Sources: Berserkers Finance
8) Argentina's real estate market is set to grow by 3% annually until 2029
Argentina's real estate market is set for 3% annual growth until 2029, driven by several key factors.
From 2024 to 2032, the market is expected to grow at a compound annual growth rate of 3.8%, reaching a value of $33.25 billion by 2032. This growth is largely due to the strong demand for residential properties in major cities like Buenos Aires and Rosario, where urban living is increasingly popular.
There's a noticeable shift towards sustainable and healthy living spaces, which has further boosted demand. In Buenos Aires, property prices are on the rise again after a slump, signaling a recovery and resilience in the market. This trend is encouraging for potential buyers looking for long-term investments.
Investors are also eyeing non-premium areas in Buenos Aires and other parts of the country. These regions offer affordable land prices and promising returns, making them attractive for those looking to invest wisely. This influx of investment is expected to support the market's upward trajectory.
With increasing transactions and appreciating property values, the market is showing signs of a steady comeback. The focus on sustainable living and strategic investments in less explored areas are key drivers of this growth.
Sources: Informes de Expertos, JJ Group, Prensa Migliorisi
We have made this infographic to give you a quick and clear snapshot of the property market in Argentina. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Construction costs rose by 30% in 2024 and are now 2.8 times higher than in October 2020
In 2024, construction costs surged by 30% and are now 2.8 times higher than in October 2020.
One major factor is inflation. Argentina has faced persistent high inflation rates, which have driven up the prices of construction materials and labor. This means everything from cement to skilled workers has become more expensive, making building projects costlier.
Another issue is the scarcity of materials. Import restrictions have led to shortages in construction supplies, causing prices to spike. When materials are scarce, their costs naturally rise, adding to the overall expense of construction.
Labor costs have also climbed significantly. In 2024, salary agreements and economic factors led to a notable increase in wages, further inflating construction expenses. This combination of factors has made building projects much pricier than before.
For anyone considering buying property in Argentina, these rising costs are crucial to understand. The increased expenses in construction can affect property prices and availability, making it essential to factor these elements into your decision-making process.
Understanding these dynamics can help you navigate the real estate market more effectively, ensuring you make informed choices when investing in property.
Sources: Mercado Libre, Adgestudio August 2024, Adgestudio June 2024
10) Nearly 20% of foreign investments come from American investors
In 2023 and 2024, the United States remained a key player in foreign investments, especially in Argentina.
Back in 2022, the U.S. led the charge as the principal foreign investor in Argentina, topping both the number of projects and the total investment amount. With 421 projects announced and completed, there was a noticeable 6% increase from 2021 and a significant 43% jump from 2020. This shows a strong and growing interest from American investors in the Argentine market.
Even though the total foreign direct investment (FDI) from the U.S. in 2022 was $13.415 million, marking a 21% decrease from 2021, it still represented a 21% increase from 2020. This fluctuation highlights the dynamic nature of investment flows, yet underscores a steady commitment to the region.
The consistent pattern of American investments aligns with the broader trend that almost 20% of foreign investments are made by American people. This is particularly evident in Argentina, where the U.S. stands as the primary source of FDI.
Such investment activities not only bolster Argentina's economy but also reflect the strategic interests of American investors in tapping into emerging markets. The U.S. continues to play a pivotal role, reinforcing its position as a dominant force in international investments.
Sources: Annual Investment Report for 2022
11) Airbnb in Buenos Aires is twice as popular as long-term rentals
In Buenos Aires, Airbnb rentals have surged ahead of long-term rentals by twofold in 2023 and 2024.
With over 26,204 properties listed on Airbnb, the short-term rental market has dwarfed the mere 559 properties registered for temporary tourist rentals under city regulations. This abundance of listings has made Airbnb a dominant force in the rental scene.
Financially, the impact is clear. Hosts on Airbnb in Buenos Aires are earning an average of $814,000 ARS monthly, equivalent to about $8,140 USD. This income is significantly higher than what long-term rentals typically offer, making short-term rentals a more appealing choice for property owners.
When comparing prices, renting a property for 30 days on Airbnb can be 46% to 258% more expensive than traditional long-term rentals. This substantial price difference has driven more property owners to opt for short-term listings, seeking higher returns.
This trend is part of a larger shift in Latin America, where digital platforms are reshaping the rental market. The focus on short-term rentals often reduces the availability of long-term rental options, as property owners aim to maximize their earnings.
In Buenos Aires, the move towards short-term rentals reflects a broader trend of housing commodification, where the potential for higher income through platforms like Airbnb is hard to resist for many property owners.
Sources: Inside Airbnb Data, Price Comparison Study, Market Trends Analysis
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12) Nominal prices remain high, but real rents have fallen 40% after inflation adjustments
In 2023 and 2024, Argentina's rental market faced a unique twist: nominal prices stayed high, but real rents dropped by 40% after inflation.
This shift was largely due to President Javier Milei's deregulation of the rental market, which boosted the supply of rental properties. With more options available, landlords had to compete, preventing nominal prices from skyrocketing. Even though these prices did rise, they couldn't keep pace with Argentina's soaring inflation.
Take Buenos Aires, for instance. The nominal price for a 2-bedroom apartment increased by 52%, yet inflation hit a staggering 102%. This means that, in real terms, the cost of renting actually fell. So, while prices appear high, the value of money has shifted so much that the real cost to renters has significantly decreased.
In essence, the rental market's dynamics have changed. More properties mean more choices, and this competition has kept nominal prices in check. However, the real story lies in how inflation has altered the landscape, making it more affordable for renters despite the apparent high prices.
For potential buyers, this scenario presents an interesting opportunity. While nominal prices might seem daunting, the real value is quite different. Understanding the impact of inflation is crucial when considering property investments in Argentina.
So, if you're eyeing a property in the country, remember that the nominal figures don't tell the whole story. The real cost, adjusted for inflation, paints a more affordable picture.
Sources: Chequeado, Iprofesional, Zonaprop
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.