All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Buenos Aires' property market is included in our pack
Considering buying a nice property in Buenos Aires? You're not alone!
Many people are charmed by Buenos Aires' tango culture and dream of owning a chic apartment or a historic mansion in this Argentine city.
Is it financially viable, though? Are property prices increasing in Buenos Aires? How much does it cost? Is it better to invest in Palermo or San Telmo? What are the taxes? Which places offer rental yields exceeding 7%?
We have the answers.
At TheLatinvestor, we've thoroughly explored this market. Actually, we've put all our findings together in a pack. Get it now.
In this article, we'll provide you with helpful information.
How is the property market in Buenos Aires?
Is the property market in a good shape or a challenging one? Data will tell us the story.
Property types
In Buenos Aires, you can find various types of properties for sale, including apartments, houses, condos, and townhouses.
These properties vary in size from cozy studios to spacious multi-bedroom options.
They are located in different neighborhoods, each offering unique vibes and amenities, such as trendy areas like Palermo, historic spots like San Telmo, and upscale districts like Recoleta.
Whether you're looking for modern urban living or charming traditional spaces, Buenos Aires has a diverse range of properties to choose from, catering to different preferences and budgets. There are even areas like Villa Crespo that offer authentic experiences without losing touch with modern conveniences.
Buy or Rent Property in Buenos Aires?
This is a common question we receive from our customers.
Deciding whether to buy or rent property in Buenos Aires is not a one-size-fits-all decision. Each situation is unique, with valid arguments on both sides.
Let's delve into the different scenarios.
Scenario 1: You Love Living in Buenos Aires
If you truly enjoy living in Buenos Aires, purchasing property can be an excellent choice.
Most people don't view Buenos Aires as an investment opportunity as much as a place to establish long-term residence, especially if you have access to US dollars. In such cases, buying makes sense.
Our real estate experts in Buenos Aires, who fact-check and review our Argentina Property Pack, suggest a general rule: if you plan to use the apartment for at least 3 months a year or potentially retire and live there, buying is a wise decision, even if it's not your primary investment.
Conversely, if you anticipate using it less than 2 months a year, renting may be more suitable in Buenos Aires.
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Scenario 2: You Have Other Investment Opportunities
From a purely economic standpoint, purchasing property in Buenos Aires isn't always the most prudent choice.
Keep in mind that you'll need to pay the full property price upfront; financing options are limited, unlike in countries like the US where loans may be tax-deductible.
It's often more advantageous to invest your capital in countries with more accessible financing and lower interest rates.
In this case, the common advice is to buy property in your home country (e.g., the US), rent it out, and use the income to support your lifestyle in Buenos Aires.
Additionally, Buenos Aires' real estate market can be surprisingly expensive considering the country's economic instability.
Other Considerations
Some areas in the north of Buenos Aires are experiencing rapid development, offering profit potential. Land is still being developed, and the city is expanding.
Property taxes in Argentina typically amount to around 1,500 pesos per month, which is relatively manageable. So, it's not a significant factor in making a decision.
Reselling property in Buenos Aires can be challenging. Many locals may not be able to afford your property, and government taxes can be substantial. Repatriating funds may also pose difficulties.
Moreover, the type and location of the property matter. Apartments in sought-after areas like Recoleta through Belgrano tend to sell well, especially if they possess unique features such as high ceilings, hardwood floors, and terraces.
It's important to note that Argentinian real estate agents typically charge commissions of 4-7% on resale transactions.
Finally, according to Numbeo, the property price-to-rent ratio in Buenos Aires is around 31.41, which is significantly above the world average.
This value shows that it would take you 31 long years of paying rents before you can own a property in Buenos Aires. The difference is huge.
Property prices in Buenos Aires
When considering apartment prices per square meter, the following are the reported averages provided by Reporte Inmobiliario:
- Studio apartments: $1,631 per square meter.
- One-bedroom apartments: $1,521 per square meter.
- Apartments with three bedrooms: $1,294 per square meter.
- Apartments with four bedrooms: $1,250 per square meter.
It's important to mention that only three areas in the northern part of Greater Buenos Aires (GBA) – specifically, Vicente López, Tigre, and San Isidro – registered average prices exceeding $2,000 per square meter for apartments with one to three bedrooms.
We actually give you a more detailed breakdown in our pack for buying property in Buenos Aires and in Argentina.
Trends
For a more detailed overview, you can read our article: how's the property market in Buenos Aires?
Significant growth in purchase and sale transactions
At the end of 2023, the Buenos Aires real estate market experienced a remarkable surge in activity.
Data from the College of Notaries of the City of Buenos Aires indicated a 25% increase in the number of real estate purchase and sale transactions compared to the previous year, with a substantial 282.1% year-over-year growth in the total monetary value involved.
This level of activity is the highest in the last six years.
Strong Demand for Purchases
There is a growing inclination among families to enter into purchase and sale agreements for housing.
This trend has been observed over the past nine months, resulting in an 18% growth in transactions, totaling 27,000 transactions.
This growth has now extended for 17 consecutive months.
Challenges in the Rental Market
Despite the robust sales activity, the rental market in Buenos Aires is facing a crisis.
Several factors, including a shortage of available rental properties, significant price increases (over 230% in the past year), and escalating monthly rents, have contributed to this situation.
Rental prices for two-bedroom apartments are particularly high and in great demand.
Mortgages on the Rise
Securing a mortgage in Argentina has historically been challenging, but there has been a notable increase in mortgage-related deeds formalized, marking a 43.2% increase in September 2023 compared to the previous year.
Over the past nine months, there has been a 9.5% growth in mortgage-related transactions, totaling 1,130 transactions.
Average Property Transaction Value Growth
The average property transaction value in Buenos Aires has increased significantly, reaching approximately $100,391 USD in U.S. dollars.
This represents a substantial year-over-year growth of 205.5% in the local currency, highlighting the dynamic nature of the real estate market.
Buenavista and Savendraa are emerging as thriving real estate hotspots in Buenos Aires.
Buenavista, located in the northern zone, has seen impressive sales figures for multiple projects.
Savendraa is also experiencing a surge in real estate developments, with a large park at its core, attracting buyers and investors with modern designs and spacious balconies.
Buying real estate in Argentina can be risky
An increasing number of foreign investors are showing interest in Argentina. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Buying property in Buenos Aires
Buying real estate in Buenos Aires can be difficult due to a lack of reliable and up-to-date information on the market. That's why we have created the pack to buy property in Buenos Aires and in Argentina.
Buying process
In the pack of documents we have built, we've covered everything about buying a property, from the contacts you'll need to the taxes that need to be paid, and even where to look for available properties.
Now, we're presenting a simpler version to make it easier for you to understand and follow along.
Many of you have expressed confusion about the property purchasing process in Argentina, particularly concerning fees, delays, and payment stages.
To address these concerns, we have comprehensively outlined the step-by-step procedure for buying real estate in Argentina in this article. Additionally, we've created a convenient summary table for your reference.
| Step | Description | Duration | Cost |
|---|---|---|---|
| Find an 'escribano' (Notary Public) |
|
|
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| Obtain a CDI (Clave de Identificación) |
|
If obtained personally, it can be time-intensive. | Minimal cost for obtaining domicile certificate and other documents. |
| Find a Real Estate Agent |
|
Commission typically 4% of purchase price + 21% VAT. | |
| Make an Initial Offer ('reserva') |
|
Offer usually valid for a week. | |
| Purchase Agreement ('Seña' and/or 'Boleto') |
|
'Boleto' typically executed within two weeks of offer acceptance. |
|
| Title Deed Transfer ('escritura') and Payment |
|
|
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Argentina.
Everything you need to know is included in our Argentina Property Pack
Where to find a property
Check out these websites to find properties in Buenos Aires, Argentina:
- Ricardo Sacco - Specializes in property sales and rentals in Trenque Lauquen.
- Vision - Allows users to search for properties for sale or rent in the General Pico area, La Pampa, Argentina.
- Ginestet - Located in General Pico, La Pampa, Argentina.
- Realigro - Specializes in property listings for sale in Argentina.
- Property Finder - Helps users find properties for sale and rent in Argentina.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Argentina.
Which properties for which budget?
As mentioned before, the average price per sqm in Buenos Aires is $2,480. A 1-bedroom property with 60 square meters of space would cost approximately $149,000, while a 2-bedroom with 85 square meters of space would cost around $211,000.
However, property prices can vary because of their qualities and where they're located.
Property prices in the top areas of Buenos Aires are commonly at a premium. In Recoleta, a residence could be around $600,000, while a house in Palermo could be priced at $430,000.
On the other hand, some areas are more budget-friendly. You might encounter an apartment in Liniers for $80,000, or you could find an apartment in Mataderos priced at only $70,000.
Find a more detailed price list in our full pack for buying property in Argentina.
Risks and pitfalls
Unfortunately, there are many mistakes that can occur when buying real estate in Argentina.
We have written a detailed article on the topic, based on the feedback we got from our customers and also our fact-checks who live in Argentina: the most common pitfalls when buying property in Argentina and how to avoid them.
And, since we like to make information clear and straightforward, here is another summary table.
| Pitfall | Description | How to Avoid/Protect Yourself |
|---|---|---|
| Getting the money in | Most transactions require cash in USD, so prepare for substantial cash and fees. | Ensure the seller has a US bank account or explore alternative payment methods. |
| Getting money out | Converting proceeds into USD can be complex; consider authorized market operations or intermediaries. | Work with authorized market operators, use existing USD accounts, or consider financial intermediaries. |
| Not speaking Spanish fluently | Language barriers can lead to misunderstandings; consider hiring a translator or fluent agent. | Work with a bilingual agent or hire a translator for clear communication. |
| Short-term buying and selling | High costs and political/economic instability make short-term transactions less favorable. | Focus on long-term investments to minimize impact from fluctuations. |
| Buying with your heart and not with your head | Buying for personal use can lead to poor rental income; consider tourist preferences. | Invest in properties appealing to tourists and high-income renters for better income. |
| Thinking you will get a mortgage | Mortgages are scarce due to economic challenges; be prepared for high upfront payments. | Don't rely on mortgages; prepare for substantial upfront payments. |
| Investing in a property nobody will want to buy later | Choose properties appealing to a broad range of buyers for better resale prospects. | Invest in classic properties in desirable neighborhoods. |
| Not hiring an escribano | Hiring a notary ensures clear titles and checks for unresolved issues; worth the fee. | Hire an escribano for due diligence and legal assistance. |
| Working with unregulated realtors | The real estate industry lacks regulation; be cautious and seek recommendations. | Get referrals and conduct thorough research when choosing a realtor. |
| Trusting your realtors regarding prices | Realtors may not advise lower prices; aim to negotiate and research property values. | Negotiate prices and research property values independently. |
| Getting the wrong specs about the property | Property documents may have inaccuracies; verify measurements and property details. | Measure property size yourself and validate information on title deeds. |
| Not knowing that most list prices are highly inflated | List prices can be inflated; negotiate for a reduction during transactions. | Negotiate prices and be aware of inflated list prices. |
| Not accounting for repairs | Prepare for renovation costs; allocate around 30% for repairs for properties under $200,000. | Budget for repairs and seek local recommendations for renovations. |
| Being in a rush and trying to do everything online | Buying property takes time and requires in-person connections; commit 3-6 months. | Plan for an extended timeframe and rely on word-of-mouth recommendations. |
| Faking the property sale’s price on the title deed | Some sellers understate property prices for tax evasion; be cautious about such practices. | Insist on legal, transparent transactions and avoid underreporting prices. |
| Buying rural lands without thorough verification | Rural land ownership can be complex, with encroachments in some areas; research thoroughly. | Investigate the location and potential land issues before buying rural property. |
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Living in Buenos Aires
Buenos Aires is a vibrant and diverse city with a rich cultural heritage, making it an ideal place to buy property.
Cost of living
The cost of living in Buenos Aires is generally lower than many other major cities, but it still depends on what kind of lifestyle you want to live. Prices for basic services, such as transportation and food, are often lower than in other countries, while prices for luxury items, such as electronics, can be higher.
Here are some examples to better understand the cost of living in Buenos Aires:
- Rent for a one-bedroom apartment in Recoleta neighborhood: $900/month.
- Monthly public transportation card (SUBE): $30.
- Asado dinner for two at a local parrilla (e.g., La Cabrera): $50.
- Empanadas (local savory pastries) at a neighborhood bakery: $2 each.
- Mate (traditional Argentine tea) set with yerba mate and bombilla: $20.
- Basic utilities for an 85m² apartment with Edenor: $80/month.
- Cinema ticket for a movie at Hoyts or Cinemark: $10.
- Bottle of Malbec wine from Mendoza: $12.
Neighbourhoods
Since we want to share information in a clear and reader-friendly way, we've created a summary table outlining the different neighborhoods in Buenos Aires. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
| Palermo | Palermo is a trendy neighborhood with a vibrant nightlife, filled with parks, restaurants, and boutiques. | Lively nightlife, green spaces, diverse dining options. | Can be noisy, crowded, and expensive. |
| Recoleta | Recoleta is an upscale neighborhood known for its historic architecture, museums, and the Recoleta Cemetery. | Beautiful architecture, cultural attractions. | High cost of living, limited nightlife. |
| San Telmo | San Telmo is a bohemian area with cobblestone streets, antique shops, and a famous Sunday market. | Artistic atmosphere, historical charm. | Can be unsafe at night, some areas are run-down. |
| La Boca | La Boca is famous for Caminito, a colorful street filled with tango performances and artsy displays. | Cultural heritage, vibrant art scene. | High crime rates, tourist-targeted theft. |
| Belgrano | Belgrano offers a quieter and more residential vibe with tree-lined streets and parks. | Safe and peaceful, good schools. | Lack of nightlife, limited shopping options. |
| Retiro | Retiro is a central neighborhood known for its transportation hub and proximity to key landmarks. | Transport links, proximity to downtown. | Can be crowded and noisy, limited green spaces. |
| Puerto Madero | Puerto Madero is a modern waterfront area with upscale restaurants, offices, and high-end apartments. | Beautiful waterfront, upscale dining. | Expensive, lacks a traditional neighborhood feel. |
| Caballito | Caballito is a residential neighborhood known for its parks, shopping, and family-friendly atmosphere. | Green spaces, family-oriented. | Limited nightlife, distant from downtown. |
| Villa Crespo | Villa Crespo is an up-and-coming neighborhood with a mix of residential areas, shops, and cultural spots. | Emerging cultural scene, diverse dining options. | Some areas may still be underdeveloped. |
| Flores | Flores is a traditional neighborhood with a strong sense of community and various commercial areas. | Community feel, good shopping options. | Limited public transportation, few tourist attractions. |
| Almagro | Almagro is a lively area with a mix of residential and commercial zones, known for its tango heritage. | Active nightlife, tango culture. | Traffic congestion, some areas are less safe at night. |
| San Nicolás | San Nicolás, also known as Microcentro, is the bustling financial and commercial center of Buenos Aires. | Business hub, historic architecture. | Can be overcrowded and hectic, few green spaces. |
| Montserrat | Montserrat is a historic neighborhood with many government buildings, theaters, and cultural landmarks. | Rich cultural heritage, central location. | Some areas may lack cleanliness, limited green spaces. |
Life in Buenos Aires
The economic landscape in Buenos Aires is largely based on the services sector, which accounts for around 75% of the city’s GDP. Buenos Aires is also a major financial center, with a strong banking sector and a growing technology industry.
The GDP of Buenos Aires constitutes nearly 15% of Argentina's GDP, according to IMF data. Buying property in a rich city is smart because many jobs, people want homes there, and property values stay steady.
What expats usually like the most in Buenos Aires is the vibrant nightlife and the wide variety of cultural activities available throughout the city. They also appreciate the affordability of living costs and the diverse range of cuisine available.
However, the crime rate index of Buenos Aires remains high (63, in the top 50 in the world). The most common crimes in Buenos Aires are pickpocketing, mugging, and theft from vehicles.
Also, you have to know that Buenos Aires might face heatwaves and occasional power outages due to its urban heat island effect and aging infrastructure.
A good point for a property investor - Buenos Aires has a comprehensive mass rapid transit system, known as the Subte, which has multiple lines.
Access to healthcare in Buenos Aires is very good, with a Healthcare Index of 69. A good healthcare system will always benefit the real estate market of a place.
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Renting out in Buenos Aires
If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.
Long-term
Tenant Profiles in Buenos Aires
According to the data reported by Wikipedia, the home ownership rate in Argentina is 69%, which is average.
It means that, if you decide to buy and rent out in Buenos Aires, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and expats, as they are the most common tenants in Buenos Aires. Couples and families of all ages and backgrounds are also common in the city.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
|
Studio Apartment in Palermo |
Youthful professionals, expats |
Trendy area, parks, nightlife |
$600 - $1,200 |
|
2-Bedroom Apartment in Recoleta |
Expats, affluent locals |
Cultural attractions, upscale living |
$1,000 - $2,000 |
|
House in Belgrano |
Families, professionals |
Quiet residential area, good schools |
$1,200 - $2,500 |
|
1-Bedroom Apartment in San Telmo |
Artists, students |
Bohemian atmosphere, historic buildings |
$500 - $1,000 |
|
Modern Loft in Puerto Madero |
Business professionals, expats |
Modern amenities, waterfront living |
$1,500 - $3,000 |
|
3-Bedroom Apartment in Caballito |
Growing families |
Family-friendly, parks, schools |
$800 - $1,600 |
|
Loft in Villa Crespo |
Young professionals, creatives |
Trendy area, close to Palermo |
$700 - $1,300 |
Rental yields
As of today, rental yields in Buenos Aires are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.
Rentals in the most popular neighborhoods, such as Palermo, Recoleta, and Belgrano, tend to have the highest yields due to their prime locations and high demand from both locals and tourists. Additionally, properties with multiple bedrooms or those with a large common area can be more profitable due to the high demand for shared housing.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Buenos Aires are taxed at 21%, which is not bad.
There seems to be a strong demand for short-term rental in Buenos Aires
Short-term
You could also decide to rent short-term to business travelers, tourists, and students studying abroad in Buenos Aires. Additionally, you could rent to digital nomads who are looking for an extended stay in the city.
If you decide to go with that option, look for properties in Palermo, Recoleta, and Belgrano, as these areas are popular tourist destinations and have a high demand for short-term rentals. Additionally, look at properties near the university area of Colegiales and Villa Crespo, as they are known for their lively nightlife.
You will have some competition though - there are around 20,000 Airbnb listings in Buenos Aires. The average daily rate stands around $55.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Buenos Aires can make around $700 per month. Also, the average occupancy rate is estimated at 68%.
Is it a good idea to buy a property in Buenos Aires then?
Buying a property in Buenos Aires can be a smart move for those who plan to make this vibrant city their long-term home or seek rental income in popular neighborhoods.
If you genuinely love Buenos Aires and can envision spending at least 3 months a year there, buying a property offers stability and a sense of belonging. It's an even more attractive option if you have access to US dollars, as this can simplify financial transactions in a country with economic instability.
Additionally, investing in high-quality properties with unique features in sought-after areas can provide good resale potential.
However, it's not always a good idea to buy property in Buenos Aires if you're primarily seeking short-term gains or have better investment opportunities elsewhere.
The local real estate market can be expensive relative to the country's economic challenges, making it more prudent to consider alternative investments. Short-term buying and selling might not be favorable due to high costs and political instability, so focusing on long-term investments is wise.
Furthermore, if you don't plan to spend significant time in Buenos Aires or are uncomfortable with potential risks like navigating the local real estate industry or language barriers, renting or exploring other investment options may be a more suitable choice.
In essence, buying property in Buenos Aires can be a rewarding decision for those who have a genuine connection to the city, while others may find better financial opportunities elsewhere.
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