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
What will happen in Buenos Aires’ real estate market? Will prices go up or down? Is Buenos Aires still a hotspot for foreign investors? How is Argentina’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Buenos Aires, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Argentina’s home prices will rise gradually because of inflation pressures
In 2023 and 2024, Argentina faced inflation rates soaring to 166% year-over-year by November 2024.
When inflation spikes like this, people often look for safe investments, and in Argentina, real estate has historically been a go-to option. As inflation rises, so do the costs of building materials. By October 2024, the Argentina Construction Cost Index for materials hit a record high, making new builds pricier. These costs usually get passed on, nudging property prices upward.
There's also been a noticeable uptick in demand for real estate as a hedge against inflation. Young professionals and students are particularly driving the demand for rentals, which has led to a boom in new residential construction. This demand, combined with inflation, is putting pressure on property prices to climb.
Experts are predicting that real estate prices in Argentina could see a 10% to 20% increase in 2025. This aligns with historical trends in dynamic markets. Government policies are also playing a role, as they aim to promote homeownership and stabilize the economy, giving the real estate market an extra boost.
For those considering buying property in Argentina, it's worth noting that these inflationary pressures and demand dynamics are likely to continue influencing the market. The combination of rising construction costs and strong demand suggests that property values will keep trending upward.
Sources: Statista, BBVA Research, CEIC Data
2) Residential property prices will rise nationwide due to increasing construction costs
Rising construction costs are driving up residential property prices across Argentina.
In 2024, builders in Argentina faced a tough challenge as construction costs soared by 30%. This isn't just a blip; it's part of a trend that's been stretching budgets and delaying projects. The surge is largely due to the record high Argentina Construction Cost Index for materials in October 2024, which has made building new homes more expensive.
While we don't have exact numbers for labor costs, it's clear that labor expenses are climbing alongside material costs. The overall construction cost index, which includes labor, has been on the rise, making it pricier to build residential properties.
In Buenos Aires, property prices are climbing again after a dip, mirroring the increasing costs of construction. This is good news for developers but makes it harder to provide affordable housing. The link between construction costs and property prices is evident, as higher building expenses push property prices up.
Sources: Trading Economics, CEIC Data, Argentina Real Estate Market
We have made this infographic to give you a quick and clear snapshot of the property market in Argentina. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Foreign buyers will hesitate to invest because of political and economic uncertainties impacting their decisions
Foreign buyers are treading carefully in Buenos Aires due to political and economic uncertainties.
From 2018 to 2023, the city's real estate market took a hit, plummeting nearly 50% in real terms. This drop is tied to economic instability and inflation, making investors think twice before diving in.
By late 2023, Argentina was in the throes of a severe economic crisis, with 41.7% of the population living in poverty. The government's declaration of a public emergency sparked protests, adding to the chaos and making foreign buyers wary.
The Argentine peso's wild fluctuations are another headache for investors. Currency instability means unpredictable returns, which is a big red flag for those considering property in Buenos Aires.
Real estate agents and developers have noticed a dip in interest from foreign buyers. This cautious approach reflects the challenging market conditions that potential investors face, despite some positive trends.
Sources: The Wandering Investor, ReliefWeb, Gordon Institute
4) Demand for energy-efficient homes will rise as sustainable living becomes more popular
There's a growing trend towards sustainable living, which is boosting the demand for energy-efficient homes.
In recent years, nearly half of homebuyers have shown a strong preference for eco-friendly homes, reflecting a shift towards more environmentally conscious lifestyles. This isn't just a passing fad; it's a significant change in how people want to live.
Governments are stepping up too. Take Buenos Aires, for example, where the local government is pushing for energy efficiency and green building practices. They're updating building codes to make sure new constructions meet sustainable standards, aligning with global sustainability goals.
The real estate market is catching on. The National Association of REALTORS reported in 2024 that the industry is increasingly focused on promoting eco-friendly homes. This is not just about being green; it's also about cutting down on utility costs, which is a big win for homeowners.
Projects like the EDGE Certification in Buenos Aires are leading the way, predicting substantial energy and water savings. This kind of initiative shows how the market is adapting to meet the demand for sustainable living.
Sources: IGES, National Association of REALTORS, World Bank Group
5) Rental yields will be higher in suburbs as families look for affordable living options
In recent years, suburban areas have started offering higher rental yields compared to city centers.
Take Rosario, for example, where rental yields ranged from 3.5% to 6.81%, slightly outpacing Buenos Aires city center's 3.4% to 6.38%. This shift is largely due to the rising property prices in city centers, making them less affordable for many families.
In Buenos Aires, the average price per square meter was between USD 2,500 to USD 3,500, while suburban areas offered more attractive prices, ranging from USD 1,500 to USD 2,000 per square meter. This price difference is a key factor driving families to consider suburban living.
Living costs also play a big role. Renting a one-bedroom apartment in the city center could set you back USD 400 to USD 600 per month. In the suburbs, it's much more affordable, with rents between USD 250 to USD 400. This affordability, along with the rise of remote work, is encouraging more families to move to the suburbs for larger spaces and a better quality of life.
Suburban areas are becoming increasingly attractive as more families seek affordable living options. The combination of lower property prices and rental costs makes these areas a smart choice for those looking to invest in property.
Source: Global Property Guide
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6) Rental prices in Buenos Aires will drop as new developments increase property availability
The rental market in Buenos Aires is seeing a shift as new developments flood the market.
In 2023 and 2024, there was a noticeable uptick in building permits for new projects, signaling a construction boom. This surge means more rental properties are entering the market, which is expected to drive rental prices down.
By mid-2024, the number of rental apartments in Buenos Aires had more than doubled, with prices dropping by 26.6%. The real estate scene is buzzing with a 211.9% increase in available rentals, changing the housing game entirely.
Government incentives are playing a big role, pushing for more construction and adding to the rental supply. This trend is likely to keep rental prices on a downward slope. Reports suggest the market is becoming saturated, making it easier for tenants to find affordable rental options.
With more properties available, renters have the upper hand, leading to a more competitive market. This shift is making Buenos Aires an attractive option for those looking to rent, as they can now find better deals.
Sources: Nearshore Americas, Instituto de Libertad Económica
7) Property prices will rise nationwide as new policies make foreign investment more appealing
In 2023 and 2024, Argentina saw a significant boost in Foreign Direct Investment, with a notable rise of 69 million USD in September 2024.
Buenos Aires' real estate market is buzzing, with a 31% jump in property sales by the end of 2024 compared to the previous year. This surge shows how much more active and in-demand the market has become, especially with the turnover rate improving from 60% to 82%.
Government policies have been a game-changer. By repealing the rent control law and scrapping the 1.5% ITI tax on property sales, the market has become more inviting for foreign investors. This has led to a whopping 170% increase in rental listings, making Argentine real estate even more appealing.
Argentina's inflation rate has eased to 2.4%, and interest rates have dropped, adding to the economic stability. This makes mortgages more accessible, and when you throw in favorable exchange rates, it's no wonder foreign buyers are eyeing Argentine properties.
These shifts in government policies are making Argentina a hot spot for international investors, driving up property prices nationwide. The changes are not just about numbers; they reflect a broader trend of making the market more attractive and accessible.
With these favorable conditions, Argentina is becoming a prime destination for those looking to invest in real estate, offering a mix of economic stability and enticing market opportunities.
Sources: Trading Economics, Bowtied Mara, eSales International
8) Rents in Palermo will rise as it stays popular with locals and expats
Rents in Palermo are on the rise for several compelling reasons.
Palermo is known as the priciest neighborhood for rentals in Buenos Aires, with average rents soaring above 525,000 Argentine pesos. This high cost reflects a strong demand for living spaces in the area. The influx of expatriates choosing Buenos Aires as their new home is also pushing the rental market upwards in Palermo. This trend is fueled by a growing interest in luxury housing and the appeal to international buyers, especially after the pandemic.
Palermo stands out with higher occupancy rates compared to other districts, underscoring the strong demand for rentals. This naturally leads to increasing rents. The neighborhood's vibrant nightlife and cultural attractions make it a magnet for tourists, creating more short-term rental opportunities and driving rents even higher. Media often highlights Palermo's eclectic indie clubs and bustling electro parties, adding to its allure.
For those considering a move, Palermo offers a unique blend of lifestyle and convenience. Its popularity among both locals and expatriates is undeniable, making it a highly desirable area. The combination of cultural richness and modern amenities ensures that Palermo remains a top choice for many. As a result, the rental market here is expected to continue its upward trend.
Investors and potential renters should keep an eye on Palermo's evolving landscape. The neighborhood's appeal is not just in its attractions but also in its community vibe. With a mix of traditional charm and contemporary living, Palermo is a place where many want to be. This ongoing demand is a key factor in the rising rents.
Whether you're looking for a vibrant place to live or a sound investment, Palermo offers both. Its status as a sought-after location is backed by its cultural offerings and the lifestyle it promises. As the area continues to attract attention, the rental prices are likely to reflect its growing popularity.
Sources: Statista, Buenos Aires Tourism
We made this infographic to show you how property prices in Argentina compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Rental yields in Buenos Aires will dip slightly as the market becomes more competitive
The rental market in Buenos Aires is getting more competitive, which might slightly lower yields for landlords.
One big factor is the rising vacancy rates, especially in office spaces, which exceeded 37% in mid-2023. This means a lot of empty offices, hinting that residential rentals could also see more competition as landlords try to fill their properties.
There's also been a boom in new rental units. According to Zonaprop, the number of rental options is now 3.1 times higher than in February 2023. With so many choices, tenants can shop around, pushing landlords to lower prices to attract them.
Argentina's economic instability, marked by high inflation and currency swings, adds another layer of complexity. This can scare off both local and international buyers, shrinking the pool of potential renters. Landlords might have to cut rents or offer perks to get tenants in.
In Buenos Aires, the rental market is shifting, and landlords are feeling the pressure. With more properties available and economic challenges, landlords are competing harder to keep their places occupied.
As the market evolves, landlords may need to rethink their strategies. Offering competitive prices or unique incentives could be key to staying ahead in this increasingly crowded market.
Sources: Buenos Aires Times, Statista, Global Property Guide
10) Rental yields in Buenos Aires will drop as property prices outpace rental rates
Buenos Aires is seeing a significant shift in its real estate market.
Property prices are climbing, with the average price per square meter expected to hover around $2,200 by 2025. This rise is happening even though the economy is facing some challenges. It's a bit like a puzzle where property values keep going up, but the pieces don't quite fit together smoothly.
On the flip side, rental rates aren't keeping up with these rising property prices. Real estate agencies report that when you factor in inflation, rental prices in Argentina have dropped by 40%. Even the nominal rental prices are creeping up at their slowest rate since 2021, hinting that the rental market is finding its balance.
Adding to the mix, the repeal of rent control laws in December 2023 has shaken things up. This change has led to a surge in rental property availability, flooding the market with options. Now, property owners and tenants have more freedom to negotiate terms, which might be affecting property prices more than the rental rates themselves.
For those considering buying property, it's crucial to understand that while property prices are on the rise, rental yields might not be as promising. The market dynamics are shifting, and it's essential to keep an eye on how these changes play out.
In this evolving landscape, potential buyers should be aware that rental yields in Buenos Aires could decline as property prices outpace rental rates. It's a market where the rules are changing, and staying informed is key.
Sources: Nearshore Americas, Global Property Guide
11) Virtual reality tours will change property viewings as they become a common tool for buyers
Virtual reality tours are revolutionizing how we buy property, especially in the countryside.
Since 2023, the real estate market has seen a remarkable shift towards VR technology. This change is fueled by the industry's growth and the leaps in VR and AR tech, making virtual tours more immersive. Imagine exploring a cozy cottage or a sprawling farmhouse from your living room, feeling like you're actually there.
Homes with virtual tours are getting 87% more views than those without. Buyers are spending 5-10 times longer on these listings, soaking in every detail. It's not just about the views; these homes are selling 31% faster and for 9% more on average. Clearly, VR tours are not just a trend; they're a powerful tool for engaging buyers.
Buyers are increasingly demanding virtual tours. A survey showed that 67% of home buyers want a virtual tour when checking out a listing. Half of them even prefer it over traditional photos. It's no wonder that 90% of potential buyers say they're more likely to purchase a property if it includes a virtual tour.
Real estate agencies are catching on, rapidly adopting VR to meet this demand. It's becoming a standard part of the buying process, especially for those looking to invest in rural properties. Imagine the convenience of exploring a potential new home without the travel hassle.
As VR technology continues to evolve, expect it to become an even more integral part of the property buying experience. It's not just about convenience; it's about making informed decisions with a real sense of the space.
Sources: PhotoUp, Realtyna, GlobeNewswire
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12) Airbnb-style investments will become less profitable due to stricter short-term rental regulations
Stricter regulations on short-term rentals are shaking up the Airbnb market.
In Buenos Aires, even though the number of Airbnb listings hasn't changed much, revenue has dropped by nearly 14% from 2023 to 2024. This dip in earnings is likely due to the new rules that hosts have to follow. They now need to register their properties, meet health and safety standards, and pay fees, which cuts into their profits. Plus, there's the added worry of fines if they don't comply.
New York City paints a similar picture. After strict regulations came into play, Airbnb listings took a nosedive. This means fewer short-term rental options and a shift towards longer stays, which might not be as lucrative for those used to the quick turnover and higher rates of short-term rentals.
These changes are making investors rethink their strategies. The compliance costs and potential penalties are making short-term rentals less appealing. In Buenos Aires, for instance, the need to get a registration number and pay fees is a hassle that eats into the bottom line.
Investors who once thrived on the Airbnb model are now facing a new reality. The market is shifting, and those who can't adapt might find themselves struggling. The focus is moving towards longer-term rentals, which don't offer the same financial returns as the short-term model.
In cities like New York, the impact is clear. The reduction in listings is not just a number; it's a sign of a changing market. Investors need to be aware of these shifts and adjust their strategies accordingly. The days of easy profits from short-term rentals might be numbered.
Sources: Airbtics, Airbtics, Business Insider
13) Demand for rentals in central Buenos Aires will grow as the expat community expands
The growing expatriate community in Buenos Aires is boosting demand for rental properties in the city.
With companies like e2f setting up shop, international professionals are flocking to Buenos Aires. This influx is not just about work; many are bringing their families, which is evident from the rising demand for international schools. Families settling in the city are driving the need for quality rental housing.
Multinational giants like ExxonMobil are also expanding their operations here, attracting a workforce that often includes expatriates. These professionals usually prefer renting over buying, given the temporary nature of their assignments. This preference further fuels the rental market.
Buenos Aires is becoming a hub for global talent, and the city’s vibrant culture and lifestyle are major draws. The expatriate community is not just growing; it’s thriving, and this is reshaping the local real estate landscape. The demand for rental properties is not just a trend; it’s a reflection of the city’s evolving international appeal.
Sources: e2f News, Statista, ExxonMobil Careers
14) Blockchain will make property transactions faster and more efficient
Blockchain technology is revolutionizing real estate transactions, making them faster and more efficient.
Take Buenos Aires, for instance, where the city has introduced a blockchain-based digital ID system called QuarkID. This innovative system allows over 3.6 million residents to securely manage their personal identification documents on a decentralized platform, paving the way for smoother property transactions.
By automating processes and eliminating intermediaries, blockchain can significantly cut transaction costs. Deloitte suggests potential savings of up to 30% in real estate deals, which is a game-changer for buyers and sellers alike.
Moreover, blockchain enhances transparency and reduces fraud, which is a major concern in property transactions. Implementing this technology could slash real estate fraud by up to 50%, potentially saving billions annually.
These advancements mean that buyers and sellers can enjoy a more streamlined and secure process. Blockchain's ability to reduce errors and fraud is a huge win for everyone involved in the property market.
Sources: Crypto TV Plus, Savvycom Software
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Argentina. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Demand for properties with fitness amenities will grow as health and wellness become more important
There's a growing trend towards health and wellness that's reshaping the real estate market.
People are more health-conscious than ever, and it's not just talk. In the U.S., gym memberships hit 64.19 million in 2023, showing a real commitment to fitness. This isn't just a local phenomenon; it's part of a larger global movement.
The global wellness economy is on fire, with an expected annual growth of 7.3% from 2023 to 2028. This boom is visible in places like Buenos Aires, where new wellness centers are popping up to cater to the demand for health-focused services.
Social media is a big player here, with fitness and wellness hashtags trending and catching the public's eye. This buzz is influencing how real estate is marketed, with a spotlight on properties that offer fitness amenities.
In the real estate world, having a gym or wellness center on-site is becoming a major selling point. Buyers are looking for homes that support their healthy lifestyles, and developers are taking note.
As more people prioritize their well-being, the demand for properties with fitness facilities is only going to grow. It's a trend that's here to stay, driven by a collective shift towards healthier living.
Sources: Gym Membership Statistics, Global Wellness Economy
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.