Is buying a property in San Carlos de Bariloche a good investment?

Last updated on December 7, 2023

Yes, the analysis of Bariloche's property market is included in our pack

If you've ever skied down the slopes of Cerro Catedral or enjoyed the stunning vistas of Nahuel Huapi Lake, you might have fallen for Bariloche City and thought about making it your second home.

Is it a good idea though? How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for Argentina, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So, we thought it would be a good idea to add some information about it in our pack.

Why do property buyers like investing in San Carlos de Bariloche?

Bariloche City, nestled in Argentina's Patagonia region, has emerged as a coveted location for property buyers.

What sets it apart from other real estate markets is its unique blend of natural beauty, outdoor activities, and a vibrant cultural scene. Its picturesque setting by the Nahuel Huapi Lake, surrounded by the Andes mountains, offers a visual treat unlike any other.

This scenic backdrop is a major draw for those who appreciate nature and seek a tranquil environment.

Bariloche's rise in popularity as a real estate destination began in the early 2000s. Its appeal lies in its combination of natural beauty, recreational opportunities like skiing, hiking, and fishing, and its reputation as a peaceful retreat.

The city has maintained a steady growth in tourism and real estate interest, suggesting that its popularity is more than just a passing trend.

The sustained demand for properties here is backed by the continuous influx of tourists and a growing community of expatriates and retirees.

The city attracts a diverse group of property buyers. These include adventure seekers drawn to the outdoor lifestyle, retirees looking for a serene place to settle, and investors seeking a profitable real estate market. The mix of local charm, modern amenities, and a strong sense of community makes it appealing to a wide audience.

However, Bariloche is not without its weaknesses. The high demand for properties has led to an increase in prices, making it less affordable for some buyers.

Additionally, the city's infrastructure, while improving, still struggles to keep pace with the growing population and tourist influx. This can lead to issues like traffic congestion and strained public services.

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Why is Bariloche City a nice place to live?

Living in Bariloche City offers a unique experience that blends natural beauty with a rich cultural lifestyle.

The city, nestled in the heart of Argentina's Patagonia region, is renowned for its stunning landscapes, encompassing mountains, forests, and lakes. This setting fosters a lifestyle that's heavily centered around outdoor activities.

Whether it's hiking, skiing, or simply enjoying the scenic views, there's always something for nature enthusiasts.

Culturally, Bariloche has a vibrant scene. It's known for its chocolate shops, craft breweries, and a variety of restaurants that offer both local and international cuisines. The city also hosts several cultural festivals throughout the year, reflecting its diverse community and rich heritage.

The expat community in Bariloche is growing and welcoming, making it easy for newcomers to integrate and feel at home. This community often gathers for social events and activities, providing a support network for those living far from their home countries.

Regarding the cost of living, Bariloche can be more affordable compared to major cities like Buenos Aires, although this can vary based on lifestyle choices.

Real estate and rental prices have risen due to its growing popularity, but day-to-day expenses like food and transportation remain relatively reasonable.

Safety in Bariloche is generally good, especially compared to larger cities in Argentina. Like any city, it's wise to take standard safety precautions, but the overall atmosphere is peaceful, and crime rates are lower.

In terms of amenities and facilities, Bariloche is well-equipped. It has several well-regarded educational institutions, such as the Universidad Nacional de Río Negro and Colegio San Patricio.

Healthcare facilities like Hospital Zonal de Bariloche and several private clinics provide good medical care. For shopping and leisure, the city offers various options including the Bariloche Shopping Center and Patagonia Plaza.

The quality of infrastructure in Bariloche is decent, with continuous improvements. Roads are generally in good condition, and utilities like water and electricity are reliable. Internet connectivity is adequate, though it can vary in more remote areas.

Access to and from Bariloche City is straightforward. It's well-connected to other parts of the region by road. The city is served by the San Carlos de Bariloche Airport, which offers regular flights to major cities in Argentina and some international destinations.

Public transportation within the city mainly consists of buses, which are a convenient and affordable way to get around.

How much does it cost to buy real estate in San Carlos de Bariloche?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Argentina.

When considering buying property in Bariloche City, you'll find a diverse range of options, from apartments and houses to luxury villas.

The type of properties in high demand typically include houses and villas, especially those with views of the Nahuel Huapi Lake or the Andes Mountains. The demand for these types of properties is driven by their unique location, offering stunning natural scenery and a tranquil lifestyle.

In terms of property types, there's a mix of both new developments and resale properties.

Recently, there has been an increase in the construction of new residential properties, including modern apartments and upscale villas, catering to the growing demand from both local and international buyers.

The price range for properties in Bariloche City can vary widely.

Generally, prices per square meter for apartments in the city center may start from a certain threshold and can go higher depending on the location, amenities, and property size.

For houses and luxury villas, especially those with prime locations and views, the prices can be significantly higher.

Over recent years, property values in Bariloche have seen an upward trend. This increase is attributed to the city’s growing popularity as a tourist destination and a desirable place to live, driven by its natural beauty and quality of life. The continuous influx of tourists and expatriates has spurred this growth in property values.

Looking at the future of the real estate market in Bariloche City, there are several factors to consider.

Firstly, any upcoming developments or city planning changes could impact property values.

For instance, if there are plans for new infrastructural developments or enhancements in public amenities, this could make certain areas more attractive, thus increasing property values.

Predicting the real estate market's trajectory, one can expect that the demand for properties in Bariloche will likely remain strong. This is due to its enduring appeal as a beautiful and peaceful place to live, combined with the potential for tourism-driven rental income.

Moreover, factors such as the city’s growing international profile and continued investments in infrastructure and amenities indicate a potential increase in property values.

Where is the best area to buy a property in San Carlos de Bariloche?

When considering the best area to buy property in Bariloche City, it's important to recognize that different parts of the city offer varied atmospheres, property types, and price ranges.

The ideal location for you will depend on what you're looking for in terms of lifestyle, scenery, and budget.

One of the most sought-after areas in Bariloche is along the shoreline of Nahuel Huapi Lake. This area is known for its breathtaking views and tranquil environment. Properties here are predominantly upscale houses and luxury villas, making it a prime choice for those seeking an exclusive living experience.

However, these properties come with a higher price tag due to their desirable location and views.

Another popular area is the city center, where you'll find a more urban atmosphere. This area is characterized by apartments and smaller houses, offering a more bustling city life with easy access to shops, restaurants, and cultural activities.

Properties in the city center are generally more affordable than those by the lake, appealing to those looking for a convenient and active urban lifestyle.

For buyers interested in up-and-coming areas, neighborhoods like Melipal are gaining attention. These areas are becoming popular due to their balance of scenic beauty and proximity to the city center, offering a mix of modern apartments and traditional homes at a range of price points.

If you're looking for a property, it's also wise to consider areas like Llao Llao and Arelauquen, which are known for their luxury resorts and golf courses. These areas offer a high-end lifestyle with premium amenities, making them attractive for those seeking luxury and recreation.

On the contrary, there are areas in Bariloche that might not be advisable for property investment. Some outskirts of the city, which are more remote and less developed, might not offer the same level of amenities or ease of access as more central locations.

These areas could also have less potential for property value appreciation, especially if they are not in the path of planned developments or improvements.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Argentina.

Area	Atmosphere	Property Types	Price Range
Nahuel Huapi Lake Shoreline	Tranquil, Scenic	Upscale Houses, Luxury Villas	High
City Center	Urban, Bustling	Apartments, Smaller Houses	Moderate
Melipal	Emerging, Balanced	Modern Apartments, Traditional Homes	Varied
Llao Llao and Arelauquen	Luxurious, Recreational	Premium Properties, Golf Courses	High
Outskirts of the City	Remote, Less Developed	Varied, Less Developed	Lower

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Is there a strong rental demand in San Carlos de Bariloche?

In Bariloche City, there's indeed a strong demand for rental properties, primarily driven by its status as a popular tourist destination and a growing expatriate community.

The rental market here leans more towards short-term rentals, particularly due to the influx of tourists who visit for the natural beauty and recreational activities the area offers.

The target demographic for rental properties in Bariloche is quite diverse. Tourists, both domestic and international, make up a significant portion of the short-term rental market.

They're often looking for properties that provide a comfortable and authentic local experience, preferably with scenic views or proximity to tourist attractions like Nahuel Huapi Lake or the Andes Mountains.

Another key demographic includes expatriates and retirees who are drawn to Bariloche for its tranquil lifestyle and natural beauty. These renters often seek longer-term rentals, looking for homes that offer comfort and a sense of community.

Regarding the profiles of potential tenants, you'll find families and groups looking for holiday homes, adventure enthusiasts who come for activities like skiing or hiking, and remote workers seeking a scenic backdrop for their work-life balance.

These tenants typically look for properties that are well-furnished, offer modern amenities, and have good internet connectivity, an essential feature for remote workers and digital nomads.

Specific areas in Bariloche that are particularly attractive for rentals include the lakeside regions and the city center.

Lakeside properties are popular among tourists seeking picturesque views and a serene environment, while the city center attracts those who prefer being closer to urban amenities like restaurants, shops, and cultural activities.

To reduce vacancy and enhance rental appeal, properties with certain amenities are more desirable.

Features like balconies with views, access to outdoor activities, secure parking, and modern, well-equipped interiors are highly sought after.

Properties that offer these features tend to rent out more quickly and can command higher rental prices.

As for the potential returns on investment, properties in prime locations like the lakeside or central city areas can yield attractive returns, especially during peak tourist seasons.

Short-term rental properties, particularly those well-maintained and strategically located, can expect a good occupancy rate and potentially higher rental income compared to long-term rentals.

In terms of property types, those seeing increasing demand and potentially better yields include well-located apartments for short-term holiday lets and houses or villas that offer unique experiences, such as those with lake views or proximity to nature trails.

These properties cater to the growing trend of experiential travel and remote working, making them particularly appealing to a large segment of the rental market in Bariloche.

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Is it easy to buy a property as foreigner in San Carlos de Bariloche?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Argentina.

Buying property in Bariloche City as a foreigner is relatively straightforward, but there are certain nuances to be aware of.

Firstly, there aren't significant restrictions on foreign buyers in Argentina, but there are specific regulations that need to be followed.

Foreign buyers must obtain a Tax Identification Number (CDI) from the Argentine tax authority (AFIP) and ensure that all financial transactions are conducted through an Argentine bank. This is to comply with money laundering laws and ensure transparency in financial transactions.

Additionally, foreign buyers need to declare the source of their funds, which is a standard procedure in international real estate transactions.

The purchasing process in Bariloche generally involves finding a property, making an offer, signing a boleto de compraventa (sale agreement), and finally completing the transfer of the property with a public deed (escritura pública).

This process is usually completed with the help of a notary public (escribano), who plays a crucial role in the property transaction in Argentina.

One of the primary risks associated with property investment in Bariloche, as with many international real estate markets, is the fluctuation in currency value. The Argentine peso has experienced significant volatility, and this can impact the value of your investment.

Additionally, understanding the local property laws and tax regulations is crucial to avoid unforeseen complications.

Common pitfalls for foreign buyers often include underestimating the importance of local market knowledge, such as the true value of properties in specific areas or the potential for future development.

There's also the risk of not fully understanding the legal and tax implications of property ownership in Argentina.

Common exit strategies for property investors in Bariloche include reselling the property, particularly after value appreciation, or leveraging the property for rental income, which can be lucrative given the city's popularity as a tourist destination.

Some investors also consider property exchange or barter as a way to diversify or exit their investments.