Authored by the expert who managed and guided the team behind the Argentina Property Pack
Yes, the analysis of Buenos Aires' property market is included in our pack
Foreign investors in Buenos Aires have experienced mixed results depending on their entry and exit timing in a market characterized by extreme volatility.
While the property market offers competitive rental yields and has seen USD price recovery since 2024, Argentina's economic instability has created significant opportunities alongside substantial risks for international buyers over the past decade.
If you want to go deeper, you can check our pack of documents related to the real estate market in Argentina, based on reliable facts and data, not opinions or rumors.
Foreign investors in Buenos Aires real estate have faced significant challenges over the past 10-15 years due to Argentina's economic instability, with property values dropping 70% in inflation-adjusted terms despite recent USD price recovery.
However, those who invested in dollars and timed their purchases during economic downturns have achieved annual returns of 7-11% through a combination of rental yields and capital appreciation.
| Investment Metric | Foreign Investor Performance | Current Status (2025) |
|---|---|---|
| Average Price Paid per m² | $2,300-$2,500 USD | Similar to local prices |
| Historical Price Growth (10-15 years) | -70% real terms, +5-9% nominal USD since 2024 | Recovering from 2018-2019 peak |
| Current Rental Yields | 4.88-6% long-term, 8-12% short-term | Competitive regionally |
| Transaction Currency | 90%+ in USD | Market fully dollarized |
| Annual Returns (Best Performers) | 7-11% gross | Including yield + appreciation |
| Transaction Costs | 6-9% of sale price | Higher than regional average |
| Average Sale Timeline | 45-90 days prime areas | Good liquidity in central districts |
How much do foreign investors actually pay per square meter in Buenos Aires compared to locals?
Foreign investors pay virtually the same prices as locals in Buenos Aires, with both groups typically paying $2,300-$2,500 USD per square meter for residential properties citywide.
The Buenos Aires property market operates almost entirely in U.S. dollars, which eliminates any meaningful price difference between foreign and domestic buyers. Premium neighborhoods like Puerto Madero command prices exceeding $6,500 USD per square meter, but these rates apply equally to all buyers regardless of nationality.
This price parity exists because over 90% of property transactions in mid- and high-end segments are conducted in USD, creating a truly dollarized market. Even local Argentine buyers prefer USD transactions as a hedge against peso devaluation, making the market essentially currency-neutral from a pricing perspective.
The lack of a "foreigner premium" makes Buenos Aires relatively accessible for international investors compared to other Latin American capitals where foreign buyers often face inflated prices. However, foreigners do face higher transaction costs, typically 6-9% of the sale price including agent commissions, notary fees, and stamp taxes.
What has been the historical price growth of Buenos Aires real estate over the last 10-15 years?
Buenos Aires property prices have experienced extreme volatility over the past decade, with values dropping 70% in real inflation-adjusted terms despite recent nominal USD recovery.
Property prices peaked in USD terms around 2018-2019, then crashed by 30-45% in most neighborhoods due to economic crises and political uncertainty. Since late 2023, the market has been recovering with nominal USD prices increasing 5-9% annually, bringing 2025 averages to $2,268-$2,500 USD per square meter.
However, when adjusted for inflation, the real value destruction has been severe. Argentina's hyperinflation and peso collapse have eroded purchasing power dramatically, with the peso losing 96% of its value since 2019. This means that while USD-denominated properties have maintained some value, peso-based investments have been completely devastated.
The market's dollarization has been the only saving grace for investors, as those who bought and sold in USD have at least preserved nominal capital. Foreign investors who entered during market lows and exited during recovery periods have achieved the best results, while those who bought at peaks have faced significant losses.
It's something we develop in our Argentina property pack.
How does the current rental yield in Buenos Aires compare to other major Latin American cities?
Buenos Aires offers competitive rental yields of 4.88-6% on long-term leases and 8-12% on short-term rentals, positioning it favorably within the Latin American market.
| City | Long-term Yield | Market Characteristics |
|---|---|---|
| Buenos Aires | 4.88-6% | Higher short-term potential (8-12%) |
| Santiago, Chile | 5-6% | Stable but lower appreciation |
| São Paulo, Brazil | 6-7% | Strong rental demand |
| Mexico City | 6-8% | Growing expat market |
| Montevideo, Uruguay | 5-6% | Stable currency advantage |
| Lima, Peru | 5-7% | Emerging market premiums |
| Bogotá, Colombia | 6-8% | High growth potential |
What percentage of foreign investors buy in U.S. dollars versus pesos in Buenos Aires?
Over 90% of foreign investors purchase Buenos Aires properties in U.S. dollars, with peso transactions limited to distressed or lower-market properties.
The Buenos Aires real estate market is functionally dollarized, with USD serving as the de facto currency for all mid- and high-end residential transactions. This dollarization extends to both foreign and local buyers, as even Argentine residents prefer USD transactions to protect against peso devaluation.
Peso transactions are rare and typically occur only in specific circumstances: distressed sales, lower-market properties under $50,000 USD equivalent, or government-subsidized housing programs. The peso's extreme volatility and hyperinflation rates exceeding 120% annually have made it impractical for substantial real estate investments.
This dollar preference is reinforced by Argentina's complex exchange rate system, where official peso rates often differ significantly from parallel market rates. Foreign investors universally choose USD transactions to avoid currency conversion risks and ensure clear value preservation.
What have been the average annual returns for foreign investors including rental income and property appreciation?
Foreign investors in Buenos Aires have achieved gross annual returns of 7-11% in the best-performing years post-2024, with more typical returns of 5-8% for average apartments.
The highest returns come from studios and one-bedroom apartments in tourist neighborhoods, which can achieve gross yields of 6-9% annually through short-term rentals. Prime areas like Palermo Soho, San Telmo, and Recoleta offer the best combination of rental income and capital appreciation potential.
Capital appreciation currently runs 5-9% per year in USD terms as the market recovers from its 2019-2022 downturn. However, total returns are highly dependent on entry timing, with investors who purchased during economic lows achieving the highest overall performance.
The most successful foreign investors have been those who combined strategic neighborhood selection with optimal timing, entering during peso crises when USD property values were depressed and exiting during recovery periods. These investors have occasionally achieved returns exceeding 15% annually when including both rental yields and capital gains.
Don't lose money on your property in Buenos Aires
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How have inflation and currency devaluation impacted the real value of foreign investor profits?
Argentina's hyperinflation and peso devaluation have obliterated real returns for peso-based investments while preserving nominal value for USD-based foreign investors, though real USD returns remain subdued.
The peso has lost 96% of its value since 2019, making peso-denominated investments worthless in real terms. Foreign investors who maintained USD exposure have avoided this currency catastrophe, but even USD-based returns have been impacted by global inflation and Argentina's economic volatility.
In inflation-adjusted terms, Buenos Aires property values are down approximately 70% over the past decade despite recent nominal USD price recovery. This real value destruction means that only investors who bought at significant discounts during crisis periods have achieved positive real returns.
The dollarization of the market has been the crucial factor for foreign investors. Those who consistently transacted in USD have preserved capital and achieved modest real returns, while any exposure to peso-denominated assets would have resulted in complete capital loss. This underscores the importance of maintaining USD exposure throughout the entire investment cycle.
What share of foreign investors have successfully repatriated profits, and at what effective exchange rate?
Repatriation of investment proceeds is legally possible without Central Bank approval under current regulations, though effective exchange rates can reduce USD returns by 10-20%.
Argentina's complex exchange rate system creates multiple official rates (official, parallel "Blue" dollar, and MEP rates) that can differ substantially. Foreign investors typically navigate this through legal financial instruments or blue-chip swaps to optimize their effective repatriation rate.
Major institutional investors report successful repatriation rates exceeding 80% of invested capital, though individual investors may face more bureaucratic challenges. The key is working with experienced local legal and financial advisors who understand the various mechanisms available for legitimate capital repatriation.
Recent economic reforms in 2024-2025 have liberalized foreign exchange controls, making repatriation more straightforward than during previous restrictive periods. However, the effective rate for repatriation still fluctuates with Argentina's volatile monetary policy, requiring careful timing and professional guidance.
How high are transaction costs, taxes, and legal fees for foreigners buying and selling property?
Foreign investors face total transaction costs of 6-9% of the property sale price, which is higher than most regional markets but manageable for substantial investments.
The breakdown typically includes 3-4% agent commissions, 1-3% notary fees, 1-1.5% stamp taxes, plus additional legal and administrative costs. These costs apply to both purchase and sale transactions, meaning total round-trip costs can reach 12-18% of the property value.
Annual holding costs are relatively low, with property taxes ranging from 0.5-1.2% of assessed value. Capital gains taxes apply selectively for foreign sellers, depending on holding period and specific circumstances. The tax burden is generally favorable compared to developed markets.
Legal fees are essential given Argentina's complex regulatory environment, but experienced attorneys typically charge 1-2% of transaction value. The investment in professional legal and tax advice is crucial for navigating local regulations and optimizing the investment structure.
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.
How liquid is the Buenos Aires property market for foreign investors wanting to sell?
The Buenos Aires property market offers good liquidity in prime neighborhoods, with average sale timelines of 45-90 days for well-positioned properties.
Central districts like Palermo, Recoleta, and Puerto Madero maintain strong liquidity due to consistent local and foreign buyer demand. Properties in these areas typically sell within 60-90 days if priced correctly at market rates.
Oversupplied or peripheral zones can take 180+ days to sell, particularly for larger properties or unique configurations. The market strongly favors smaller units (studios and one-bedrooms) which have the highest liquidity and fastest turnover times.
Recent mortgage market reforms in 2024-2025 have improved overall market liquidity by expanding financing options for local buyers. This has created more buyer activity and reduced average sale times compared to the 2019-2022 period when cash transactions dominated. Foreign investors benefit from this improved liquidity when exiting their investments.
What government restrictions or incentives affect foreign investors in Buenos Aires real estate?
Argentina currently imposes no major restrictions on foreign property ownership and has implemented reforms that actively encourage international investment.
1. **No ownership restrictions**: Foreigners can buy residential property without limitation2. **Recent market liberalization**: 2024-2025 reforms eliminated rent control laws and expanded mortgage access 3. **Large investment incentives**: Investments over $5 million USD qualify for tax exemptions and up to 30 years of fiscal stability4. **Simplified bureaucracy**: Recent administrative reforms have streamlined property transfer processes5. **Foreign exchange liberalization**: Improved ability to repatriate investment proceeds and profitsThe current government has prioritized attracting foreign investment through these liberalization measures. Large-scale investors can access additional benefits through national and provincial investment regimes, including customs exemptions and preferential tax treatment.These policy changes represent a significant shift from previous restrictive periods and create a more favorable environment for foreign real estate investment than has existed in over a decade.Which Buenos Aires neighborhoods have delivered the strongest returns for foreign investors?
Palermo, Puerto Madero, and Villa Crespo have delivered the strongest overall performance for foreign investors through a combination of capital appreciation and rental demand.
| Neighborhood | Investment Profile | Typical Returns |
|---|---|---|
| Palermo (all areas) | Best overall performer | 8-12% gross yields |
| Puerto Madero | Luxury capital gains | 6-8% with high appreciation |
| Villa Crespo | Gentrifying area | 7-10% with strong growth |
| Recoleta | Premium stability | 6-9% consistent returns |
| San Telmo | Tourist rental focus | 9-13% short-term yields |
| Belgrano | Residential stability | 5-7% steady performance |
| Barracas | Emerging opportunity | 6-9% with upside potential |
It's something we develop in our Argentina property pack.
What has been the impact of economic and political instability on foreign investor profits?
Economic and political turbulence has created extreme volatility in returns, rewarding strategic investors who time market cycles while punishing those caught in downturns.
Political and economic crises have repeatedly driven down USD property prices, creating buy-low opportunities for sophisticated foreign investors. Those who purchased during the 2019-2022 crisis period and maintained USD exposure have achieved the strongest returns as markets recovered.
Conversely, investors who bought at market peaks during stable periods have faced significant losses. The cyclical nature of Argentina's political economy means that returns are heavily dependent on entry and exit timing relative to crisis and recovery cycles.
Recent reforms since 2024 have improved the investment climate through market liberalization, foreign exchange deregulation, and investment incentives. These changes have attracted renewed foreign capital inflow and improved market liquidity, benefiting existing investors through enhanced exit opportunities and property value recovery.
The key lesson for foreign investors is that Argentina's political volatility creates both extreme risks and exceptional opportunities, requiring sophisticated timing and strong risk management rather than passive buy-and-hold strategies.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign investors in Buenos Aires real estate have faced a challenging but potentially rewarding market over the past decade.
Success has depended heavily on maintaining USD exposure, strategic timing, and selecting prime neighborhoods, with the recent policy reforms creating improved conditions for international investment.
It's something we develop in our Argentina property pack.
Sources
- Square Meter Buenos Aires - The LatinVestor
- Argentina Real Estate Market Outlook - The LatinVestor
- Real Estate Price Discussion - Reddit Buenos Aires
- Buenos Aires Real Estate Market - The LatinVestor
- Argentina Price History - Global Property Guide
- Housing Market Argentina - The LatinVestor
- Buenos Aires Real Estate Sales Growth - Buenos Aires Herald
- Average Rental Yield Argentina - The LatinVestor
- Latin America Rent Yields - Global Property Guide
- Getting Dollars for Real Estate - BA Expats Forum