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Property prices in Buenos Aires are projected to increase moderately by 2026, with growth rates of 3-5% annually expected despite ongoing macroeconomic challenges. The Buenos Aires residential market is recovering from historic lows, with prices rising 7% in USD terms in 2024 compared to 2023, though values remain 70% below 2019 levels when adjusted for inflation.
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Buenos Aires property prices are expected to rise 3-5% annually through 2026, with average prices reaching USD 2,350-2,625 per square meter.
High inflation, peso devaluation, and cash-dominated transactions continue to shape the market dynamics significantly.
| Key Metric | 2024 Current | 2026 Projection |
|---|---|---|
| Average Price per m² | USD 2,200-2,500 | USD 2,350-2,625 |
| Annual Price Growth | 7% (USD terms) | 3-5% annually |
| Rental Yields | 5.98-7.30% | 6-8% projected |
| Mortgage Interest Rate | 37.84% | 25-30% estimated |
| Exchange Rate (ARS/USD) | ~1,000 ARS | 1,375 ARS projected |
| Cash vs Financed Sales | 90%+ cash | 85-90% cash |
| Inflation Rate | 35-40% | 28-36% projected |
What was the average price per square meter in Buenos Aires in 2024, and how did it compare to 2023?
The average price per square meter in Buenos Aires in 2024 ranged from USD 2,200 to USD 2,500 citywide, depending on the specific neighborhood.
Premium areas like Puerto Madero commanded significantly higher prices, reaching USD 5,500 per square meter, while mid-range neighborhoods such as Palermo averaged between USD 3,500 and USD 4,000 per square meter. These price variations reflect the stark differences in amenities, location, and property quality across Buenos Aires districts.
Compared to 2023, Buenos Aires property prices increased by 7% in USD terms, marking the sharpest rise in six years. This growth represented a significant turnaround for the Buenos Aires real estate market, which had experienced several years of declining values. Property transactions also surged by 35% over the previous year, indicating renewed market confidence and liquidity.
Despite this nominal increase, real property values remained 70% below their 2019 peak when adjusted for peso devaluation and high inflation rates. This means that while prices rose in dollar terms, the purchasing power and real value of Buenos Aires properties continued to reflect the broader economic challenges facing Argentina.
It's something we develop in our Argentina property pack.
How much have property prices in Buenos Aires increased annually over the past 10 years in pesos and USD?
Property price movements in Buenos Aires over the past decade tell a complex story of currency volatility and economic turbulence.
In nominal peso terms, property prices increased substantially over the ten-year period, often outpacing official inflation rates. However, these nominal increases provided little protection against the peso's dramatic devaluation against the US dollar. The local currency gains were largely eroded by Argentina's persistent high inflation and currency instability.
In USD terms, Buenos Aires property prices peaked during 2018-2019, then dropped 20-25% by 2024. This decline reflects the broader economic challenges that have affected Argentina's real estate market. When adjusted for inflation and exchange rate changes, the real purchasing value of properties fell approximately 70% over the ten-year period.
The typical annual pattern showed nominal peso price increases frequently exceeding inflation rates, but the actual USD equivalent and purchasing power declined sharply due to peso depreciation. This created a disconnect between local currency performance and international value, making Buenos Aires properties increasingly attractive for foreign buyers with hard currency while challenging local investors.
These dynamics highlight why understanding both local currency and USD performance is crucial for anyone considering Buenos Aires real estate investments.
What is the projected average price per square meter for 2026 based on current trends?
Based on current market trends and expert forecasts, Buenos Aires property prices are expected to grow moderately through 2026.
Analysts project annual growth rates of 3-5%, which would place citywide average prices at approximately USD 2,350-2,625 per square meter by 2026. This represents a more sustainable growth trajectory compared to the sharp 7% increase experienced in 2024, reflecting expectations of greater economic stability and gradual recovery.
Premium neighborhoods are likely to see higher growth rates due to continued international demand and new development projects. Areas like Puerto Madero, Palermo, and Recoleta may experience above-average appreciation as they attract foreign investment and high-end residential developments with modern amenities.
These projections assume no major currency shocks or significant political and economic crises that could disrupt market stability. The forecast also factors in expected improvements in Argentina's macroeconomic indicators, including slower inflation and greater exchange rate stability under current government policies.
However, investors should note that these projections carry inherent uncertainty given Argentina's volatile economic history and ongoing structural challenges.
How has inflation affected real estate prices historically, and what is the inflation forecast for 2025-2026?
Inflation has been the dominant force shaping Argentina's real estate market, creating a complex relationship between nominal price increases and real value preservation.
Historically, property prices in Argentina have often failed to keep pace with soaring inflation rates, resulting in negative real returns and declining USD values despite nominal peso increases. This pattern has made real estate a less reliable inflation hedge compared to other countries with more stable currencies. Properties that appeared to gain value in peso terms actually lost purchasing power when measured against inflation and currency depreciation.
For 2025-2026, analysts estimate inflation will slow significantly from current levels. Inflation is projected to decline to around 28-36% by the end of 2025, with monthly rates stabilizing around 3% in 2026. This represents a substantial improvement from the higher rates experienced in recent years and could provide a more favorable environment for real estate investment.
The projected inflation slowdown stems from government fiscal and monetary reforms aimed at stabilizing the economy. Lower inflation rates would likely improve the real return potential of Buenos Aires properties and make peso-denominated investments more attractive to both local and international buyers.
If inflation targets are met, real estate could regain its traditional role as an inflation hedge in the Argentine market.
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What is the expected exchange rate for 2026, and how would that impact foreign buyers?
The Argentine peso is expected to continue its depreciation trend against the US dollar through 2026.
Exchange rate forecasts project USD 1 = ARS 1,375 by March 2026, representing continued peso devaluation from current levels of approximately ARS 1,000 per dollar. This ongoing depreciation reflects Argentina's structural economic challenges and the government's efforts to achieve a more competitive exchange rate while managing inflation.
For foreign buyers, continued peso weakening creates a compelling value proposition. Properties become increasingly affordable in hard currency terms, allowing international investors to acquire Buenos Aires real estate at historically attractive prices. A weaker peso effectively provides a discount for USD, EUR, or other strong currency holders looking to enter the Buenos Aires market.
However, peso depreciation also introduces currency risk for foreign investors planning to hold properties long-term. While entry costs become lower, future resale values in hard currency terms may be affected by continued devaluation. Rental income denominated in pesos also loses value when converted to foreign currencies, impacting cash flow returns.
Foreign buyers should consider currency hedging strategies or focus on properties in areas with strong USD-linked rental markets to mitigate peso depreciation risks.
How many new residential units are expected by 2026, and how does that compare to demand?
The Buenos Aires residential supply outlook through 2026 shows significant emphasis on quality and technology improvements rather than just quantity increases.
By the end of 2026, the majority of new residential buildings are expected to feature smart home technology, with 60% of new constructions meeting advanced smart home standards. This represents a major shift toward higher-quality, technology-enabled housing that caters to modern buyer preferences and international standards.
Energy-efficient certification is projected to grow by 40% by 2027, driven by new government requirements mandating that all new constructions meet class "C" energy efficiency standards. This regulatory push toward sustainability will likely increase construction costs but also create higher-value properties that appeal to environmentally conscious buyers.
Overall supply continues to lag behind demand, especially for modern, energy-efficient housing types. Buenos Aires faces significant unmet demand as population growth and urban development outpace new construction. This supply-demand imbalance supports price stability and potential appreciation, particularly for properties meeting new technology and efficiency standards.
The focus on quality over quantity in new developments suggests that premium properties will likely see stronger demand and price performance through 2026.
What are the current rental yields in Buenos Aires, and how have they changed over the past 5 years?
Buenos Aires rental yields have improved significantly, making the city increasingly attractive for income-focused property investors.
| Property Type | Current Gross Yield (2025) | Previous Performance |
|---|---|---|
| Studio Apartments | 8.38% | Highest yield category |
| 1-Bedroom Units | 6.72% | Strong performance |
| 2-Bedroom Units | 6.94% | Moderate improvement |
| 3-Bedroom Units | 7.15% | Good family housing yields |
| Citywide Average | 5.98-7.30% | Up from 4.64% in 2023 |
Rental yields have risen dramatically from 4.64% in 2023 to 5.98-7.30% in 2025, representing a substantial improvement in income generation potential. This increase stems from inflation-driven rent increases and regulatory changes that have liberalized the rental market.
The removal of rent control regulations has allowed landlords to adjust rents more frequently and align them with market rates. Rents for new contracts have risen faster than inflation following deregulation, improving returns for property owners while creating affordability challenges for local tenants.
Studio apartments offer the highest yields at 8.38%, making them attractive for investors focused on maximizing rental income. Larger units provide lower but still competitive yields, with 3-bedroom properties offering 7.15% gross returns.
It's something we develop in our Argentina property pack.
What is the current mortgage interest rate, and how has it evolved over the past 3 years?
Mortgage interest rates in Argentina remain at extremely high levels, severely limiting financing options for property buyers.
As of June 2025, the current mortgage interest rate stands at 37.84%, which represents a significant improvement from recent peaks but remains prohibitively expensive for most borrowers. This rate reflects Argentina's ongoing monetary policy challenges and high inflation environment, making mortgage financing largely inaccessible to average buyers.
The three-year trend shows dramatic volatility, with rates averaging 30-33% in 2024 and peaking at an extraordinary 130.6% in 2023 amid severe financial instability. The decline from the 2023 peak demonstrates some stabilization in Argentina's financial system, though rates remain far above international norms.
These extremely high borrowing costs explain why the vast majority of Buenos Aires property transactions are cash-based. Most buyers cannot qualify for or afford mortgage payments at these interest levels, creating a market dominated by investors with liquid capital or foreign buyers bringing hard currency.
While rates have declined from historic highs, they continue to limit the mortgage market's role in property financing and maintain barriers to homeownership for middle-class Argentines.
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 has unemployment changed over the past 5 years, and what is the projection for 2026?
Buenos Aires unemployment rates have fluctuated significantly over the past five years, reflecting Argentina's broader economic volatility and recovery efforts.
The unemployment trend has been influenced by multiple factors including economic crises, COVID-19 pandemic effects, and subsequent recovery measures. Argentina experienced elevated unemployment during economic downturns, with particularly challenging periods during 2019-2020 when both economic instability and pandemic restrictions impacted the labor market.
As of 2025, unemployment has improved due to economic stabilization measures implemented by the current government. The implementation of fiscal and monetary reforms has helped create a more stable business environment, leading to gradual job market recovery and increased business confidence in Buenos Aires.
For 2026, projections indicate further improvement in unemployment rates as inflation slows and economic growth picks up. The expectation is that continued policy reforms and macroeconomic stabilization will support job creation and reduce unemployment levels. A stronger labor market would positively impact housing demand and support property price growth.
Lower unemployment rates typically correlate with increased housing demand, as more people can afford rent or property purchases, supporting both rental markets and sales activity in Buenos Aires.
What percentage of property sales are cash purchases versus financed, and how might that shift in 2026?
The Buenos Aires property market is overwhelmingly dominated by cash transactions due to limited mortgage accessibility and prohibitively high interest rates.
Currently, over 90% of property sales in Buenos Aires are cash transactions, with financing playing a minimal role in the market. This cash dominance stems from mortgage interest rates exceeding 37% and restrictive lending criteria that exclude most potential borrowers. The high-interest environment makes mortgage payments unaffordable for the vast majority of buyers.
Cash transactions include both local buyers using peso savings or dollar holdings, and foreign investors bringing hard currency to take advantage of peso depreciation. Many middle and upper-class Argentines maintain USD savings precisely to make property purchases, as peso-denominated savings lose value rapidly due to inflation.
For 2026, modest changes in the financing landscape are expected as lending rates gradually decrease and financial sector reforms take hold. The proportion of financed transactions may increase slightly, potentially reaching 10-15% of total sales if interest rates decline to the 25-30% range as projected.
However, cash will likely remain the dominant transaction method through 2026, maintaining the current market structure that favors buyers with liquid capital and creates barriers for those dependent on financing.
What has been the average time on market for properties in the past year compared to 5 years ago?
Property liquidity in Buenos Aires has improved significantly, with properties selling faster than in previous years.
During 2024-2025, properties have remained on the market for shorter periods compared to previous years, reflecting improved market liquidity and rising buyer demand. The trend shows a clear improvement in transaction velocity, indicating renewed confidence in the Buenos Aires real estate market and greater willingness among buyers to make purchase decisions.
Five years ago, average time on market was considerably longer due to economic stagnation and declining real property values. The combination of political uncertainty, currency volatility, and falling prices created a sluggish market where both buyers and sellers adopted wait-and-see approaches, extending the typical sales cycle.
The current improvement in market timing reflects several positive factors: increased transaction volume (up 35% in 2024), price stabilization in USD terms, and growing interest from both domestic and foreign buyers. Properties in prime locations and those priced competitively are seeing particularly quick sales.
This faster market pace suggests increased confidence in Buenos Aires real estate as an investment and indicates that buyers are becoming more decisive when attractive opportunities arise.
It's something we develop in our Argentina property pack.
What are the government's housing policies, subsidies, or tax changes that could influence property prices in 2026?
The Argentine government has implemented several significant policy changes that will continue to impact the Buenos Aires property market through 2026.
The most impactful recent reform was the removal of rent control regulations, which deregulated the rental market and allowed landlords to set market-rate rents and adjust them more frequently. This change has resulted in higher rental yields for property owners and improved liquidity in the rental market, though it has created affordability challenges for tenants.
Energy efficiency standards are becoming mandatory through the "Etiquetado de Viviendas" program, requiring all new constructions to meet class "C" energy efficiency standards by 2027. This policy will increase construction costs but also create higher-value properties that appeal to environmentally conscious buyers and may command premium prices.
Infrastructure investment and urban renewal initiatives are ongoing, with particular focus on improving public transportation and neighborhood development. These investments typically increase property values in affected areas and support long-term appreciation potential.
The government continues to debate subsidies for first-time homebuyers and property tax adjustments. Current policies favor incentives for foreign investment and aim to attract hard currency into the real estate sector. There are also ongoing discussions about tax reforms that could affect property ownership costs and transaction fees.
These policy directions suggest a government approach focused on market liberalization and attracting investment rather than imposing restrictions.
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.
Buenos Aires property prices are expected to rise moderately through 2026, with annual growth rates of 3-5% projected despite ongoing macroeconomic challenges.
The combination of peso devaluation, improving rental yields, and government policy reforms creates both opportunities and risks for property investors in Argentina's capital city.
Sources
- The Latin Investor - Argentina Price Forecasts
- The Latin Investor - Average House Price in Buenos Aires
- The Latin Investor - Buenos Aires Price Forecasts
- Global Property Guide - Argentina Home Price Trends
- BuySellBA - Property Price Analysis
- Adventures in CRE - Latin America Real Estate Markets
- Reuters - Argentina Inflation Forecast
- Trading Economics - Argentina Inflation Rate
- Exchange Rates - USD to ARS Forecast
- The Latin Investor - Buenos Aires Real Estate Market