Is buying pre-construction in Buenos Aires worth the risk?

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

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Buenos Aires. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Buenos Aires real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in neighborhoods like Palermo, Puerto Madero, and Recoleta. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How much do pre-construction units in Buenos Aires cost compared to finished apartments?

Pre-construction units in Buenos Aires cost 15–25% less per square meter than completed apartments in the same neighborhoods.

Pre-construction properties are typically priced at USD 1,300–1,350 per square meter based on construction costs plus developer margins. Completed apartments sell for USD 2,200–2,500 per square meter in mid-tier neighborhoods citywide. Premium areas like Palermo command USD 3,500–4,300 per square meter, while luxury developments in Puerto Madero reach up to USD 6,500 per square meter.

The cost difference becomes more pronounced in upscale neighborhoods. In Palermo, you might pay USD 2,800 per square meter for a pre-construction unit versus USD 3,800 for a completed apartment. In emerging areas like Villa Crespo, pre-construction units cost around USD 1,800 per square meter compared to USD 2,400 for finished properties.

This pricing advantage exists because developers need upfront capital to fund construction and are willing to offer discounts for early buyers who assume construction and delivery risks.

What are the typical construction timelines and actual delivery rates?

Developers in Buenos Aires typically promise 18–30 month construction timelines, but less than half of projects finish on time.

Standard timelines vary based on project scale and complexity. Small residential buildings with 20–40 units usually promise 18–24 months. Larger mixed-use developments or high-rises often quote 24–30 months. However, actual delivery frequently extends 6–12 months beyond promised dates.

Economic instability significantly impacts delivery schedules. During periods of high inflation or currency volatility, material costs surge and financing becomes difficult, causing widespread delays. Construction permits and municipal approvals also add unpredictable timeframes, particularly for larger developments.

As of September 2025, delivery rates have improved slightly due to stabilizing economic conditions, but buyers should still expect potential delays and plan accordingly.

How do you evaluate developer financial stability and track records?

Developer financial stability varies widely in Buenos Aires, requiring thorough due diligence on their balance sheets and completed project history.

Established firms like Newland, TGLT, and Consultatio have successfully delivered prominent projects in Palermo, Puerto Madero, and Caballito over the past decade. These developers maintain strong financial positions and have weathered multiple economic cycles. Mid-tier developers may have completed 5–10 projects but lack the same financial reserves during challenging periods.

Essential evaluation criteria include reviewing audited financial statements, examining their project portfolio from the last 10 years, checking media coverage for any legal disputes or delivery issues, and verifying their current project pipeline. Uruguay-based developers with Argentine operations often demonstrate stronger financial stability due to more stable banking relationships.

Red flags include developers with only one or two completed projects, those who cannot provide clear financial documentation, or companies facing ongoing legal disputes with previous buyers.

It's something we develop in our Argentina property pack.

What legal protections exist for pre-construction buyers?

Recent legal reforms under DNU 1017/2024 have strengthened buyer protections for pre-construction purchases in Argentina.

Protection Type	Before 2024 Reforms	After 2024 Reforms
Contract Registration	Optional, limited enforceability	Mandatory registration provides legal backing
Delay Penalties	Negotiated case-by-case	Contractually defined penalties required
Plan Changes	Developer discretion	Buyer approval required for major changes
Project Cancellation	Limited recourse options	Clear refund procedures established
Dispute Resolution	Lengthy court processes	Streamlined arbitration options
Financial Guarantees	Rarely required	Bank guarantees encouraged
Buyer Information Rights	Limited disclosure requirements	Enhanced transparency obligations

How do inflation and peso volatility affect pre-construction investments?

Argentina's inflation rate of 47.3% as of September 2025 significantly impacts pre-construction investments, though USD-based transactions provide partial protection.

Most pre-construction deals are structured in US dollars, which shields buyers from direct peso devaluation but doesn't eliminate all currency risks. Construction costs often increase during the building period due to inflation in materials and labor, potentially affecting project completion or quality. Real estate prices typically lag behind inflation, meaning the actual purchasing power of your investment may decline even in USD terms.

The peso has stabilized somewhat compared to the extreme volatility of 2023 when inflation peaked at 211%. However, ongoing economic uncertainty means currency fluctuations remain a significant consideration. Developers may attempt to pass increased costs to buyers through contract modifications or quality reductions.

Smart buyers negotiate inflation adjustment clauses and ensure payment schedules account for potential currency volatility throughout the construction period.

What payment structures do developers typically require?

Buenos Aires developers typically require 30–40% upfront payments at contract signing, with the balance paid in monthly installments throughout construction.

Standard payment structures involve an initial deposit of 10–15% upon contract signing, followed by additional payments totaling 20–25% within the first 30–60 days. The remaining 60–70% is paid in fixed monthly installments over the construction period, usually 18–30 months. All payments are denominated in US dollars to protect against peso depreciation.

Developers show increasing flexibility in payment terms, particularly in slower market conditions. Some accept quarterly rather than monthly payments, allow balloon payments tied to construction milestones, or offer extended payment periods for bulk purchasers. However, most currency risk remains with the buyer.

Negotiation opportunities exist for well-qualified buyers, especially those purchasing multiple units or in emerging neighborhoods where developers need to secure funding quickly.

How does the resale market work for pre-construction units after delivery?

Pre-construction units in Buenos Aires typically resell within 1–3 months after delivery at prices slightly below new completed units but above the original pre-construction price.

Successful resales depend heavily on location and project quality. Well-located new developments in established neighborhoods like Palermo or Recoleta achieve resale prices 90–95% of comparable new units. Properties in emerging areas may sell at 85–90% of market rates but still generate 15–25% returns above the original pre-construction purchase price.

Buenos Aires property transaction volumes increased 40% year-over-year through September 2025, improving overall market liquidity. New developments with modern amenities and energy-efficient features attract buyers more quickly than older inventory. The resale timeline varies significantly by neighborhood, with prime areas offering faster liquidity than emerging districts.

Pre-construction buyers who chose reputable developers in good locations typically achieve positive returns upon resale, while those in questionable projects or poor locations may struggle to recover their initial investment.

What rental demand and yields can you expect in Buenos Aires?

Buenos Aires rental yields range from 5–8% annually in USD terms, with strong demand for well-located new properties following recent rental market deregulation.

Recent removal of rent control regulations has boosted rental supply and stabilized yields across the city. Prime neighborhoods like Palermo, Recoleta, and Puerto Madero show consistent demand for furnished apartments targeting professionals and expatriates. Smaller units typically achieve higher yields than larger properties due to greater affordability for local renters.

Emerging neighborhoods like Villa Crespo, Caballito, and Almagro offer higher potential yields of 7–8% as they attract young professionals and students. These areas benefit from ongoing gentrification and improved infrastructure investment. Rental demand remains particularly strong for properties near subway lines and business districts.

New pre-construction developments often achieve premium rents due to modern amenities, energy efficiency, and contemporary design features that older buildings lack. However, actual rental performance depends on location, building management quality, and local market conditions at delivery time.

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.

Are there differences in property taxes and condo fees between pre-construction and completed units?

Property taxes show minimal differences between pre-construction and completed apartments, while condo fees may be lower initially for new developments.

Both property types face identical tax obligations once delivered and occupied. Developers sometimes cover property taxes during construction, but buyers assume full responsibility upon delivery. Annual property tax rates in Buenos Aires range from 0.5–1.5% of assessed value, depending on neighborhood and property characteristics.

Condo fees for new developments often start lower than established buildings due to warranty coverage on major systems and energy-efficient features that reduce utility costs. Initial monthly fees typically range from USD 80–150 for standard apartments, increasing over time as buildings age and require more maintenance. Established buildings may charge USD 120–200 monthly for similar units.

New developments may also include amenities like gyms, pools, or security systems that justify higher fees but provide additional value. Buyers should request detailed projections of future fee increases when evaluating pre-construction purchases.

What government policy risks should concern pre-construction buyers?

Government policy risks remain significant in Argentina, including potential capital controls, taxation changes, and foreign ownership restrictions, though recent trends favor modest liberalization.

Historical policy volatility includes multiple currency controls, foreign exchange restrictions, and sudden changes to property transfer regulations. The current administration has moved toward economic liberalization, but policy reversals remain possible with future government changes. Foreign buyers face particular risks around capital repatriation and currency exchange regulations.

Recent positive developments include streamlined foreign investment procedures and reduced bureaucratic barriers for property transactions. However, the regulatory landscape remains fluid, and new administrations could reimpose restrictive policies. Economic crises often trigger emergency measures that impact property markets and foreign ownership rights.

Prudent buyers structure investments to minimize policy exposure through legal entities, diversified payment methods, and exit strategies that account for potential regulatory changes.

It's something we develop in our Argentina property pack.

How much negotiation power do buyers have with developers currently?

Buyers in Buenos Aires currently have modest to moderate negotiation power with developers, especially for bulk purchases or properties in less prime locations.

Market conditions favor buyers more than in previous years due to economic uncertainty and developers' need for upfront capital to fund construction. Negotiation opportunities include extended payment schedules, reduced down payments, inclusion of additional amenities, or price discounts for multiple unit purchases. Developers in emerging neighborhoods show greater flexibility than those in established premium areas.

Successful negotiations often focus on payment terms rather than base prices. Buyers may secure quarterly instead of monthly payments, delayed start dates for installments, or performance guarantees tied to delivery schedules. Cash buyers command significantly more negotiating power than those requiring financing.

The best negotiation leverage comes from thorough market research, multiple developer options, and willingness to walk away from unfavorable terms. Buyers should engage local real estate professionals familiar with current market dynamics and developer practices.

Which Buenos Aires neighborhoods offer the best pre-construction appreciation potential?

The most promising Buenos Aires neighborhoods for pre-construction appreciation over the next 5–10 years include established areas like Palermo and Recoleta, plus emerging districts like Villa Crespo and Caballito.

1. **Palermo and Recoleta**: Established demand, premium pricing, consistent appreciation due to limited development space and strong infrastructure2. **Belgrano**: Growing business district with new office developments driving residential demand and property values upward3. **Villa Crespo**: Rapid gentrification, young professional demographic, significant infrastructure improvements planned through 20304. **Caballito**: Central location, improved transportation connections, affordable entry point with strong appreciation potential5. **Almagro**: Cultural renaissance area attracting artists and young professionals, historic architecture with modern development opportunities6. **Villa Lugano and Southern Districts**: Highest appreciation potential due to major infrastructure investment and urban renewal projects7. **Barracas and San Telmo**: Historic preservation combined with modern development creating unique investment opportunities

Prime established neighborhoods offer stability and consistent returns, while emerging areas provide higher appreciation potential but with increased risk. Infrastructure development, transportation improvements, and demographic shifts drive long-term value creation across these markets.

It's something we develop in our Argentina property pack.

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.

Sources

1. Buenos Aires Square Meter Prices - The LatinVestor
2. Buenos Aires Real Estate Market Analysis
3. Apartment Prices Buenos Aires - Statista
4. Buenos Aires Real Estate Market - The LatinVestor
5. Buenos Aires Price Forecasts - The LatinVestor
6. Argentina Construction Industry Report - Business Wire
7. Argentina Inflation Rate - Focus Economics
8. Buenos Aires Real Estate Market - The Wandering Investor