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
Are you curious about the future of Argentina's real estate market? Wondering which trends will dominate in 2025? Eager to know how these changes could impact your investments?
We will tell you everything. Here, no guesswork; we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Argentina Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Argentina’s housing market has shifted under President Milei
Under President Javier Milei, Argentina's housing market has transformed.
One major shift was the repeal of the rent control law, which led to a 170% increase in rental listings in Buenos Aires. This surge made it easier to find a place and helped lower vacancy rates. Even though rent prices on paper seem high, the real cost, when adjusted for inflation, has dropped by 40%, easing the financial load on renters.
Mortgages are back, thanks to falling interest rates, opening doors for more people to buy homes. Interest rates plummeted from 130.6% in December 2023 to 29.28% in September 2024, making mortgages much more affordable. This has been a game-changer for many aspiring homeowners.
With more apartments available, the rental market is stabilizing, offering hope for a balanced future. The increased supply is attracting more investment, as people see opportunities in the housing market. Buenos Aires, in particular, is seeing a buzz of activity, with more properties on the market than ever before.
These changes are drawing attention from both local and international investors, eager to capitalize on the evolving landscape. The combination of accessible mortgages and a growing rental market is creating a dynamic environment for potential buyers.
Sources: The Latinvestor, The Rio Times, The Latinvestor
2) Rents in Argentina can now be denominated in any currency, including Bitcoin
In 2023, Argentina shook up its rental laws by allowing rents to be paid in any currency, even Bitcoin.
This change was part of a broader push by President Javier Milei to make the economy more flexible and less regulated. The announcement came from Foreign Minister Diana Mondino in December 2023, marking a big step in this direction. By January 2024, Rosario saw its first Bitcoin rental contract, facilitated by the local crypto platform Fiwind. This was a major milestone, showing how Argentina's legal system can adapt to new financial tech.
With Argentina's inflation rates soaring, many people are turning to alternative currencies like Bitcoin, which they see as more stable than the peso. This economic backdrop makes cryptocurrencies an attractive option for transactions, including rent. The country’s tech infrastructure supports this shift, making it easier for people to use digital currencies in everyday life.
In Rosario, the first Bitcoin rental contract was a game-changer, highlighting the growing acceptance of digital currencies. This move is not just about keeping up with trends; it's a practical response to the economic challenges faced by many Argentinians. The flexibility to use Bitcoin for rent payments is a relief for those looking to escape the peso's instability.
Argentina's embrace of Bitcoin for rent payments is a sign of the times, reflecting a broader global trend towards digital currencies. The country’s high inflation has made Bitcoin an appealing alternative, and the legal framework is evolving to support this shift. Fiwind's role in facilitating the first Bitcoin rental contract in Rosario is a testament to the growing importance of crypto platforms in Argentina's economy.
As more people look for ways to protect their finances from inflation, the option to pay rent in Bitcoin offers a new level of financial security. This change is not just about convenience; it's about adapting to a rapidly changing economic landscape. Argentina's legal system is proving to be flexible, accommodating the needs of its citizens in innovative ways.
Sources: CryptoRank, BitDegree News, Cointelegraph
Everything you need to know is included in our Real Estate Pack for Argentina
3) Renovated properties are becoming increasingly popular in Argentina
Renovated properties in Argentina are becoming increasingly popular due to a mix of cultural and practical reasons.
In Buenos Aires, property transactions have seen a 47.3% rise since July 2023, and a 16.9% increase compared to summer 2024. This surge is largely because of favorable economic conditions and policy incentives that boost buyer confidence. Younger investors, who are more comfortable with risks, are driving this trend by investing in modern, smaller properties.
These younger buyers are reshaping the market, showing a strong preference for homes that combine historical architecture with modern, sustainable upgrades. Consumer surveys reveal a clear preference for modern amenities and updated interiors, which aligns with the investments being made in renovations.
Renovated properties offer higher rental yields compared to non-renovated ones. This is thanks to energy-efficient systems and modern conveniences that not only reduce long-term costs but also enhance property value. Real estate market reports highlight the appeal of these homes, emphasizing their blend of historical charm and eco-friendly features.
Listings often showcase renovated homes, pointing out their ability to preserve historical architecture while integrating modern upgrades. This trend is particularly attractive to those who value both tradition and sustainability in their living spaces.
As a result, the demand for construction and renovation services has surged, with younger investors leading the charge. They are not just looking for a place to live but are also interested in properties that offer a blend of history and modernity, making them a smart investment choice.
Sources: The Latinvestor, Inter-American Development Bank, The Latinvestor
4) Young buyers, comfortable with risks, rush to the Argentina property market
Young buyers are flocking to Argentina's property market because of its appealing opportunities.
Argentina's real estate scene is buzzing with youthful energy, thanks to affordable property prices that are hard to resist. These young investors are not just buying; they're transforming the market by opting for modern, compact homes and pouring resources into renovations.
In Buenos Aires, the property market is on fire, with a 47.3% jump in sales from July 2023 to the end of 2024. This boom is fueled by a recovering economy and growing consumer confidence, making it a hot spot for young, risk-taking buyers.
Argentina's affordability is a magnet for those eager to invest in emerging markets. The government's recent policy changes, like the repeal of the Rural Land Law and Executive Order 70/2023, have opened doors for foreign investors, sparking renewed interest from abroad.
The rise of remote work is another game-changer, allowing young professionals to live anywhere. This flexibility has led to a surge in young buyers snapping up Argentine real estate as they embrace the chance to work and live in a vibrant new environment.
Sources: The Latinvestor, WSC Legal, Golden Harbors
5) Mortgages have returned to Argentina, and it will continue
Mortgages are back in Argentina, and it looks like they're here to stay.
Argentine banks are stepping up, with Banco Nación planning to dish out US$4 billion in home loans over the next four years. Other banks, like Banco Ciudad and Banco Santander Rio, are also jumping on the mortgage bandwagon, making it easier for folks to get a foot on the property ladder.
The government is lending a hand too, rolling out policies to boost credit access and encourage homeownership. By repealing the Rent Law, they've made property investments more tempting, which is giving the mortgage market a nice little nudge.
Interest rates are another biggie. Since President Javier Milei took the reins, interest rates have plummeted from 75.44% in June 2023 to 28.34% in June 2024. This drop is making mortgages more attractive, even if the rates are still on the high side.
For those eyeing a slice of Argentine real estate, these changes mean more opportunities to secure a mortgage and invest in property. The combination of bank initiatives, government support, and lower interest rates is creating a more favorable environment for buyers.
So, if you're thinking about buying property in Argentina, now might be a good time to explore your options. With banks eager to lend and policies in place to support buyers, the mortgage market is buzzing with potential.
Sources: Statista, Buenos Aires Times, BBVA Research
Get fresh and reliable information about the market in Argentina
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Marketplaces are now the top choice for property searches
Marketplaces are now the top choice for property searches in Argentina.
Argentinians are flocking to platforms like Mercado Libre, with 8 out of 10 preferring these digital solutions for their property needs. Zonaprop.com.ar is a prime example, drawing in over 10 million visits each month, which highlights the growing trend of online property searches.
People are not just visiting these sites; they are engaging deeply. On Airbnb.com.br, users browse an average of 11.57 pages per visit, showing a keen interest in exploring properties online. Real estate agencies using Mercado Ads have seen a 52% boost in visibility, thanks to the increased traffic and engagement on these platforms.
President Milei's repeal of the rent control law has also fueled this shift. In Buenos Aires, rental listings have surged by 170%, making online marketplaces even more appealing for both buyers and sellers. This change has opened up new opportunities in the property market.
The younger generation is a driving force behind this trend. They naturally gravitate towards digital solutions, making online platforms their go-to for property searches. This tech-savvy group is reshaping how properties are bought and sold in Argentina.
Sources: The Latinvestor, SEMrush, SimilarWeb
7) Most foreign buyers come from the U.S, Spain and Netherlands
The Argentine real estate market is buzzing with interest from foreign buyers, especially those from the U.S., Spain, and the Netherlands.
With the favorable exchange rates and attractive property prices, Argentina has become a hotspot for international investors. This influx is not just a trend; it's reshaping the market landscape. Local real estate agencies report that these foreign buyers are driving up property values and reducing the available inventory, making it a competitive scene for locals.
President Milei's recent economic reforms have sparked renewed interest among investors, hinting at a potential shift in market dynamics. This is particularly enticing for those from the U.S., Spain, and the Netherlands, who are keen to seize these opportunities for long-term gains.
For those considering a purchase, it's worth noting that the strong interest from international buyers is not just about the numbers. It's about the unique blend of culture, lifestyle, and investment potential that Argentina offers. The country's diverse landscapes and vibrant cities add to its allure, making it more than just a financial decision.
Insider knowledge suggests that areas like Buenos Aires and Mendoza are particularly popular among these foreign investors. These regions offer a mix of urban excitement and scenic beauty, appealing to a wide range of preferences. The cultural richness and economic potential of these areas are significant draws.
Sources: The Latinvestor, Booking.com, Global Property Guide
8) Rental profitability is dropping because property prices are rising faster than rents
Rental profitability is dropping because property prices are rising faster than rents.
In Argentina, especially in Buenos Aires, property prices have surged over the past few years. For example, the median price for an apartment is now ARS 2,231,111/m², while houses are at ARS 1,122,083/m². This shows a substantial increase in property values.
Despite this, rental prices haven't kept up with the rising property values. Reports indicate that apartment prices in Buenos Aires fell by 5.41% year-over-year in early 2023. When adjusted for inflation, the drop is even more dramatic at 53.71%, suggesting that rental prices are lagging behind property prices.
The average gross rental yield in Argentina has also taken a hit, dropping to 4.64% in Q2, 2024 from 5.90% in Q1, 2024. This means landlords are earning less from their rentals compared to the increasing property prices.
Argentina's economic challenges, like hyperinflation, are further squeezing rental profitability. The Argentine peso's devaluation has slashed purchasing power, making it tough for landlords to stay profitable. In Buenos Aires, neighborhoods such as La Matanza and Morón show lower rental yields, ranging from 3.68% to 5.47%, underscoring the impact of rising property prices.
For those considering buying property in Argentina, it's crucial to understand that rental yields are not keeping pace with property price increases. This trend is particularly evident in Buenos Aires, where the gap between property values and rental income is widening.
Sources: Global Property Guide, Properstar Housing Price Details, Gross Rental Yields in Argentina
Everything you need to know is included in our Property Pack for Argentina
9) Affordable housing is a key focus, especially in cities like Buenos Aires
Affordable housing is a hot topic in Buenos Aires, especially for young adults.
In Argentina, many young people, particularly those aged 25 to 35, are still living with their parents because they can't afford their own place. About 2.3 million young adults are in this situation, highlighting the need for more affordable housing options. The government is stepping in with initiatives like "Mejor Vivir," which offers financing and technical help to improve homes in vulnerable areas.
Buenos Aires has been labeled as the least affordable city in South America for buying an apartment, making it tough for many to enter the housing market. The gap between what people earn and what homes cost is a real challenge. To tackle this, there are more housing projects now aimed at low- to middle-income families.
Organizations like CAF, the Government of Argentina, and Fundación Pro Vivienda Social are teaming up to make a difference. They're working on projects that provide loans and technical assistance to help families improve their living conditions. These collaborations are crucial for thousands of families looking to better their housing situations.
For those considering buying property in the country, it's important to know that affordable housing is a major focus in urban areas like Buenos Aires. The city's real estate market is challenging, but there are efforts underway to make it more accessible.
These initiatives are not just about building homes; they're about creating sustainable communities where people can thrive. If you're thinking about investing in property here, understanding these dynamics can give you an edge.
Sources: Batimes, CAF, Statista
10) Argentina’s property market still isn’t friendly to foreign buyers
Buying property in Argentina can be a real challenge for foreigners.
The process is complicated and bureaucratic, requiring a CDI or tax ID number, and the help of local legal experts to navigate the legal landscape. This can be quite daunting for international investors who are not familiar with the system.
Another big issue is the tight restrictions on foreign currency exchange. The government has made it difficult for international buyers to source dollars for property transactions, especially with the current high inflation and surging interest rates. In April 2023, the central bank's decree further restricted foreign exchange, adding another layer of complexity for potential buyers.
Financing is also a problem, as non-residents have limited access to mortgages. The mortgage market in Argentina is shrinking, and rising interest rates make borrowing more expensive. This means that mortgages are less affordable, making it harder for foreign buyers to invest in the property market.
For those considering a purchase, it's important to understand that Argentina's property market isn't very friendly to foreign buyers. The combination of bureaucratic hurdles, currency restrictions, and limited financing options creates a challenging environment.
Despite these challenges, some investors are still drawn to Argentina's real estate market, but they need to be prepared for the complexities and potential roadblocks they might face.
Sources: Global Property Guide, Lawyers Argentina, The Latinvestor
11) PH properties are much more popular than apartments
In Argentina, PH properties are gaining popularity, especially in bustling cities like Buenos Aires.
One major reason is the significant cost savings they offer. Owners can save a hefty amount, up to $200,000 ARS annually, on maintenance fees compared to apartment living, making them a financially attractive option.
These properties also boast a unique blend of historical architecture and modern upgrades. This mix of charm and contemporary comforts is a big hit among homeowners, leading to quick sales, often within just 3-4 months.
In sought-after areas like Palermo Soho, the scarcity of PH properties has driven prices to new heights. This limited availability adds to their allure, attracting buyers eager for something special.
The repeal of the rent control law has also shifted the rental market, making PH properties more appealing. With real rental costs dropping by 40% when adjusted for inflation, these properties now offer higher rental yields and lower vacancy rates.
Sources: The Latinvestor, Global Property Guide
Don't buy the wrong property, in the wrong area
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Inflation and material shortages are pushing construction costs higher
In Argentina, inflation is skyrocketing, especially in 2023 and 2024.
With inflation rates climbing, construction costs are soaring. The OECD has projected that inflation could hit a jaw-dropping 250.6% in 2024, a sharp rise from 134.5% in November 2023. This surge is a key factor driving up expenses in the construction sector.
Prices for essential materials like cement and steel have nearly doubled, pushing the construction cost index in Argentina to a record high by October 2024. In Greater Buenos Aires, construction costs jumped by 97.9% year-on-year, while Córdoba province wasn't far behind with a 94.8% increase.
Builders are not just battling high prices; they're also facing material shortages. These shortages are causing significant delays and cost overruns, making it tough to stick to project timelines and budgets. The scarcity is partly due to global supply chain disruptions, influenced by events like the pandemic and geopolitical tensions.
Construction companies are finding it increasingly difficult to secure the materials they need. This situation is creating a challenging environment, where inflated prices and delays are becoming the norm.
For anyone considering buying property in Argentina, it's crucial to understand how these factors are affecting the market. The combination of inflation and material shortages is reshaping the landscape, making it a unique time for potential buyers.
Sources: Buenos Aires Herald, CEIC Data, Construction Briefing
13) Tax relief measures are boosting the real estate market by removing barriers to selling
In 2023 and 2024, Argentina's real estate market saw a significant boost thanks to tax relief measures that removed barriers to selling properties.
One major change was the elimination of the 1.5% ITI tax on property sales, making the market more appealing to both local and foreign investors. This move dismantled previous obstacles, leading to a surge in transactions and increased interest from buyers and sellers alike. In Buenos Aires, property sales jumped by 47.3% from July 2023 and saw a 16.9% increase from the summer of 2024, showcasing the positive impact of these tax changes.
For sellers, the removal of the 1.5% transfer tax significantly cut down transaction costs, making it easier to sell properties and boosting their confidence in the market. This change was a game-changer, encouraging more people to list their properties and participate in the bustling market.
Foreign investment also played a crucial role in this market boost. Favorable exchange rates and attractive property prices drew in buyers from countries like the U.S., Spain, and the Netherlands. This influx of foreign buyers not only drove up property values but also squeezed the available inventory, further stimulating market activity.
The media coverage highlighting the benefits of these tax relief measures contributed to the increased market activity and investor interest. With more eyes on Argentina's real estate, the buzz around these changes only grew, attracting even more potential buyers.
Sources: The Latinvestor, The Latinvestor, Allende & Brea
14) Mendoza, which is 50% cheaper than Buenos Aires, appeal to buyers
Mendoza is 50% cheaper than Buenos Aires, making it a hot spot for property buyers in Argentina.
With property prices averaging around $1,200 per square meter, Mendoza offers a more affordable alternative to the capital's high costs. This affordability isn't just about numbers; it's about the lifestyle you can enjoy here. Imagine sipping local wines at a fraction of the cost you'd pay in Buenos Aires.
Real estate agencies are buzzing about Mendoza's appeal, highlighting not just the savings but the quality of life. Everyday expenses, like dining out or grabbing a drink, are noticeably cheaper, adding to the city's charm. It's not just a place to live; it's a place to thrive without breaking the bank.
The buzz is backed by a surge in property transactions, showing that more and more buyers are catching on to Mendoza's allure. This trend is a clear sign that people are drawn to the city's lower costs and vibrant lifestyle. It's a topic frequently covered in media articles and real estate blogs, which only adds to its growing reputation.
For those considering a move, Mendoza offers a compelling mix of affordability and lifestyle. It's not just about saving money; it's about enjoying a richer life. The city's cost benefits are well-documented, making it a smart choice for savvy buyers.
Sources: Numbeo, The Latinvestor
Everything you need to know is included in our Pack for Argentina
15) Buyers are showing a greater willingness to pay closer to asking price
Buyers are now more willing to pay closer to the asking price for properties.
In Buenos Aires, there's been a noticeable shift with property sales closing at or near the asking price. This uptick by the end of 2024 shows a strong demand, suggesting buyers are meeting sellers' expectations instead of haggling. The market is buzzing, and it's clear that the days of heavy negotiations are fading.
The gap between listing and sale prices has shrunk to around 4–5%, which is back to what we used to see historically. This is especially true in high-demand areas where competition is intense. Sellers are seizing the moment to get better returns, and real estate agents are seeing fewer price cuts before sales. It's a sign that buyers are ready to pay up in this competitive scene.
Foreign buyers from places like the U.S., Spain, and the Netherlands are adding to the demand, creating a bidding frenzy. This competitive vibe is pushing buyers to act fast and pay closer to the asking price to snag properties. Homes are spending less time on the market, showing just how urgent buyers are feeling.
In this bustling market, the reduced negotiation margin and quick sales are clear indicators of a shift. Buyers are stepping up, ready to meet the asking prices, driven by the fear of missing out in a hot market. The influx of international interest only adds fuel to the fire, making it a seller's paradise.
Sources: The Latinvestor, Global Property Guide, The Wandering Investor
16) Gentrifying neighborhoods like Palermo Soho and Villa Crespo offer the best upside potential
Gentrifying neighborhoods like Palermo Soho and Villa Crespo are where you’ll find the best potential for property investment.
In Palermo Soho, property values have been climbing steadily, with prices now soaring to over $3,000 per square meter. New developments are even reaching up to $4,000 per square meter, showing a solid 9% annual increase. Villa Crespo isn't far behind, with a 5.5% year-over-year price growth, thanks to its trendy restaurants and shops.
Villa Crespo is on the brink of transformation with large-scale urban regeneration projects. These improvements, along with better public transport access, are set to boost its desirability. Meanwhile, Palermo Soho is buzzing with new developments that are reshaping the local culture and pushing property prices higher.
The vibe in these areas is changing, thanks to an influx of young professionals and expatriates. Palermo Soho is becoming a melting pot of international residents, blending traditional and modern influences. Villa Crespo is catching the eye of young professionals and expatriates, drawn by its dynamic atmosphere and growth potential.
Sources: The Latinvestor, Bowtied Mara, The Latinvestor
17) Buenos Aires' market is growing but remains below 2018 levels
The real estate market in Buenos Aires is growing but still hasn't hit 2018 levels.
In December 2024, there were 4,946 property sales, a noticeable jump from earlier months. Yet, this is a far cry from the 36,000 transactions in the first half of 2018. The market is moving, but it's not quite the boom it once was.
Right now, the average price per square meter is about $2,200. This is a recovery from the lows but still not back to the peak prices of 2018. Real estate agencies are seeing prices stabilize, but they haven't fully rebounded to where they were.
One big hurdle is the oversupply of properties. With over 163,000 units on the market and only a small fraction selling, there's a lot of inventory to work through. This glut is a hangover from previous years, and it's slowing down the market's recovery.
Inflation and currency swings are also playing a part, affecting both purchasing power and investment levels. These economic factors are making it a slow climb back to the heights of 2018.
Sources: The Latinvestor, The Latinvestor, Buenos Aires Herald
Make a profitable investment in Argentina
Better information leads to better decisions. Save time and money. Download our guide.
18) Used home prices are rising but remain below pre-pandemic levels
In Argentina, used home prices are climbing, but they haven't yet bounced back to pre-pandemic levels.
Buenos Aires has seen a 47.3% jump in property sales from July 2023 to the end of 2024, which is a big deal for the market. Even with this boost, prices haven't hit their old highs, suggesting there's still potential for growth. The city is buzzing with activity, but it's not quite at its peak yet.
In the second quarter of 2024, the average price for apartments in Buenos Aires nudged up by 5.49% to US$2,269 per square meter. However, when you factor in inflation, the real story is different. Back in the first quarter of 2023, prices dropped by 5.41% year-over-year to US$1,731 per square meter, and with inflation adjustments, they actually plummeted by a staggering 53.71% year-over-year.
Inflation is a major player here, causing real rental costs to fall by 40% when adjusted for inflation. This makes housing more affordable for many locals, which is a big plus. Inflation doesn't just affect rentals; it also impacts both new and used home prices, shaking up the market dynamics.
Government actions have also stirred things up. The repeal of rent control laws and lower interest rates have breathed new life into the housing market, pushing used home prices upward. These changes are part of a broader strategy to make the market more vibrant and accessible.
So, while used home prices are on the rise, they still have a way to go before reaching their former glory. The market is evolving, with inflation and policy shifts playing key roles in shaping its future.
Sources: The Latinvestor, The Rio Times, Global Property Guide
19) European and North American buyers are increasingly interested in sustainable, scenic properties in Patagonia
European and North American buyers are increasingly drawn to sustainable, scenic properties in Patagonia.
Many buyers from the U.S., Spain, and the Netherlands are reshaping Argentina's real estate market. They are attracted by favorable exchange rates and appealing property prices, making Patagonia a hot spot for international investors. This influx is changing the landscape of property ownership in the region.
Eco-friendly properties like Costa Susana are setting new standards. These homes, built with sustainable construction practices, are in high demand, especially among younger buyers aged 18 to 44. This demographic is keen on eco-friendly products and sustainable living, driving the market towards greener options.
Patagonia's natural beauty is a major draw. The region's stunning national parks, mountains, and lakes make it a prime location for both living and tourism. This allure is evident in the increasing number of real estate listings that emphasize sustainability features, catering to environmentally conscious buyers.
Media coverage has also played a role in boosting Patagonia's appeal. The region is frequently highlighted in travel and lifestyle publications, particularly those targeting European and North American audiences. This exposure has helped cement Patagonia's reputation as a desirable destination for sustainable living.
Sources: The Latinvestor, OIA