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How is Buenos Aires’ property market at the end of 2023?

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As we approach the conclusion of another eventful year, it's time to take a closer look at the state of Buenos Aires' property market.

The real estate landscape in Argentina's vibrant capital city has been a subject of keen interest for investors, homeowners, and real estate enthusiasts alike.

Here is a brief overview - for more details and more data, check our Argentina Property Pack.

In September purchase and sale of properties in Buenos Aires grew by 25%

The Buenos Aires real estate market is experiencing a significant surge in activity.

In September 2023, data released by the College of Notaries of the City of Buenos Aires reveals that nearly 4,000 real estate purchase and sale transactions were completed, amounting to a staggering $145.66 billion in total value.

Compared to the same month the previous year, these figures reflect a remarkable 25% increase in the number of transactions and an astonishing 282.1% nominal year-over-year growth in the monetary value involved, which is quite substantial. This performance in September 2023 stands out as the best in the last six years when examining historical data from the entity. To find a comparable level of activity during the ninth month of the year, we must look back to 2018 when there were nearly 6,000 operations in Buenos Aires.

Jorge De Bártolo, the president of the CABA College of Notaries, commented on this remarkable trend, stating, "We are once again observing a context where 4,000 operations have been achieved, and this has occurred during the most volatile months of the year."

17 months of year-on-year growth

Why is the real estate market in Buenos Aires experiencing a surge in purchases?

In notary offices, we observe a strong inclination towards entering into purchase and sale agreements. Families who have set aside their savings for housing recognize that this is their top priority.

This month, there has been a 25% increase compared to the same time last year, and over the past 9 months, we've seen an 18% growth, totaling 27 thousand transactions.

While there is still a considerable journey ahead to fully recover the market, it's noteworthy that we have now experienced 17 consecutive months of year-on-year growth.

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Rental prices have increased more than 230% in the last year in Buenos Aires

The current situation in Buenos Aires presents a paradox.

Despite record-high sales, the rental market in Buenos Aires is facing a crisis with extremely low activity levels.

Several factors contribute to this crisis, including a severe shortage of available rental properties, significant price increases of over 230% in the past year, and escalating monthly rents.

For instance, the average monthly rent for a two-bedroom apartment is approximately 230,000 Argentine pesos, equivalent to roughly $2,200 USD. Studio apartments typically cost around 180,000 Argentine pesos per month, approximately $1,720 USD, while three-bedroom apartments can reach up to 300,000 Argentine pesos per month, about $2,860 USD.

To provide a clearer picture, here are examples of monthly rents for two-bedroom apartments in different Buenos Aires neighborhoods.

In Belgrano, the rent is approximately $280,000 Argentine pesos per month, roughly $2,670 USD.

In Flores, you can expect to pay about $220,000 Argentine pesos per month, which is approximately $2,100 USD.

In Almagro, apartments are available for around $190,000 Argentine pesos per month, or about $1,810 USD.

In Balvanera, the rent is around $170,000 Argentine pesos per month, equivalent to approximately $1,620 USD.

The staggering 230% increase in rental prices can be attributed to several key factors.

First, there is a significant shortage of two-bedroom apartments available for rent in Buenos Aires (CABA). This shortage has created a situation where demand far exceeds supply, leading to increased prices.

Also, recent reforms to the Ley de Alquileres (Rental Law) have introduced changes, including semi-annual adjustments based on the Casa Propia coefficient. These legal changes have added uncertainty to the rental market and may have contributed to the price hikes.

Rapid inflation in Argentina has had a broad impact, including on the housing market. The high inflation rate makes it challenging to set stable rental prices for an entire year, leading to higher initial rental costs.

Obviously, the presence of short-term rental platforms like Airbnb has further limited the supply of long-term rental properties, pushing up prices in the traditional rental market.

Two-bedroom apartments are in high demand, leading to more significant price increases. This category represents the majority of rental inquiries, and the scarcity of such units is exacerbated by some properties being converted into short-term rentals.

Finally, the overall economic situation in Argentina, including currency devaluations and inflation, has contributed to the instability in rental prices.

While the recent rental law reform introduces some potential improvements, such as semi-annual adjustments and fiscal incentives for landlords, addressing the underlying issue of inflation is crucial to stabilizing rental prices in Buenos Aires. Currently, there is no clear solution to tackle the inflation problem and its impact on rental prices in both CABA and the rest of the country.

Prices per square meter are around $1,500 in Buenos Aires

In terms of apartment prices per square meter, here are the averages reported by Reporte Inmobiliario:

- Studio apartments: $1,631 per square meter.

- One-bedroom apartments: $1,521 per square meter.

- Apartments with three rooms: $1,294 per square meter.

- Apartments with four rooms: $1,250 per square meter.

It's worth noting that only three areas in the northern part of Greater Buenos Aires (GBA), namely Vicente López, Tigre, and San Isidro, recorded average prices exceeding $2,000 per square meter for apartments with one to three rooms.

More and more mortgages for property purchases in Buenos Aires

Securing a mortgage in Argentina can be quite challenging due to the country's history of steep price hikes, frequent currency devaluation, and stringent regulations concerning currency exchange.

To put this into perspective, in Argentina, only 1% of the country's economic activity comes from mortgages. In contrast, Colombia sees 6%, Brazil 9%, Chile 24%, and the United States a substantial 77%.

However, in September 2023, there were 169 mortgage-related deeds formalized, marking a significant 43.2% increase compared to the same month the previous year.

Over the course of the past nine months, there has been a 9.5% growth in deeds involving mortgages, totaling 1,130 transactions. 

The average property transaction is just above $100,000

The average property transaction in Buenos Aires reached a substantial amount of $36,838,761 Argentine pesos. This figure, when converted using the average official exchange rate, equates to approximately $100,391 in U.S. dollars.

This significant transaction value underwent remarkable growth over the course of just one year.

In terms of the local currency, the average property transaction surged by an impressive 205.5%. This indicates a substantial increase in the value of real estate within the Argentinian market, highlighting the dynamic nature of the country's property sector.

However, when assessing the growth in U.S. currency terms, the increase remains substantial but is somewhat more subdued.

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Buenavista has emerged as a thriving real estate hotspot in Buenos Aires

Buenavista, a neighborhood in the northern zone of Buenos Aires, Argentina, is gaining significant traction as a prime hub for real estate development and swift apartment sales.

The neighborhood has witnessed an unprecedented surge in apartment sales, with numerous projects setting records for unit sales.

Situated at kilometer 19 of the Panamericana highway and accessible from Uruguay Street, Buenavista is renowned for its open urbanization concept. It borders the Bancalari corridor and is often likened to central European cities in terms of its design and layout.

One standout project in Buenavista is Furó, which has impressively sold 90 units in just two months, resulting in $7 million in revenue. This $80 million project comprises two 12-story buildings scheduled for completion by December 2026. The apartments vary, with options ranging from two-room units with 61 square meters, priced at $120,000, to three-room units with 100 square meters, priced at $300,000, and larger units available as well.

Notably, buyers have the option of financing, with a 30% down payment in dollars and 40 installment payments in pesos. The price per square meter is $2,000 without financing and $2,250 with financing.

Furó's design encompasses lush vegetation, a wooded forest, and a sprawling 15,000-square-meter lagoon, creating a unique microsystem. The project offers a plethora of amenities, including pools, a gym, event rooms, coworking spaces, and more.

The popularity of Buenavista extends beyond Furó, with other projects in the area also achieving remarkable sales figures. Open Buenavista, for instance, reserved 210 units within a mere four weeks and is expected to be delivered 36 months after construction commences.

Pueblo Buenavista, developed by Intercons, impressively sold 110 of its 125 units in the first week of going on sale. This project combines residential buildings with a commercial and gastronomic sector and is expected to be completed in 26 months.

The magnetism of Buenavista can be attributed to four key pillars: accessibility, education, security, and price.

The neighborhood boasts proximity to schools, sports clubs, restaurants, and offices, making it highly appealing to both families and business professionals. The ease of getting around without a car is also highlighted as a key factor contributing to Buenavista's success.

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Savendraa is now shining as a prominent player in Buenos Aires' real estate sector

Savendraa is a new hotspot in Buenos Aires for several reasons.

First, Savendraa is experiencing a surge in real estate developments with around 60 projects currently under construction. These projects offer units with modern design and spacious balconies.

The starting price for properties in this area is relatively high, with well properties starting at USD 1,900 per square meter and brand-new properties ranging from USD 2,400 per square meter. This indicates a growing interest from investors and buyers in the neighborhood.

Also, Savendraa boasts a large park of over 14 hectares at its core, providing a peaceful and green environment. During the COVID-19 pandemic, the value of such green spaces became even more apparent, making Savendraa an attractive option for those seeking spacious and nature-connected living environments.

Savendraa is strategically located, just 10 blocks from General Paz Avenue, close to the Metrobus on Cabildo Avenue, and 14 blocks from Libertador. It is also well-connected to educational institutions, clubs, and public services, making it a convenient place to live.

According to our local experts on the fields, the neighborhood has become a magnet for gastronomic establishments, attracting both young people and families. The revitalization of the area with a variety of dining options adds to its appeal.

That is to be noticed, Savendraa offers a mix of low-rise buildings, houses, PHs (shared housing), and taller apartment buildings. This diversity in housing options caters to a wide range of preferences.

There are favorable financing options and buyers have the option of financing their purchases, making it more accessible to a broader audience.

Finally, the modification of the Planning Code in the area has allowed for the construction of taller buildings, which has attracted developers to explore new opportunities in the neighborhood.

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