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Yes, the analysis of Buenos Aires' property market is included in our pack
Buenos Aires real estate presents significant risks for foreign investors due to Argentina's volatile economic environment, peso devaluation, and high inflation rates.
While property ownership is unrestricted for foreigners and rental yields range from 3.8% to 5.8% in prime neighborhoods, investors face challenges including currency controls, limited financing options, and property values that have dropped up to 70% in real terms over the past five years. The market requires cash transactions in USD and careful navigation of repatriation regulations.
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Buenos Aires apartments in central areas currently sell for $2,300-$2,500 USD per square meter citywide, with prime neighborhoods reaching $3,200-$4,300 per square meter.
Foreign investors face significant currency risk as the Argentine peso has devalued substantially, though USD-denominated transactions provide some protection.
| Risk Factor | Impact Level | Details |
|---|---|---|
| Currency Devaluation | High | Peso lost substantial value vs USD, inflation >100% annually |
| Property Value Decline | High | Real values dropped up to 70% in 5 years due to inflation |
| Financing Access | High | 95% cash deals, no mortgages for foreigners |
| Repatriation Complexity | Medium | Currency controls complicate profit transfers |
| Market Liquidity | Medium | 8-12 months average resale time |
| Rental Income Stability | Medium | Yields 3.8-5.8%, improved after rent control removal |
| Foreign Ownership | Low | No restrictions, freehold ownership available |
How much do apartments in central Buenos Aires cost per square meter now versus five years ago?
As of September 2025, central Buenos Aires apartments sell for $2,300-$2,500 USD per square meter citywide, with premium neighborhoods commanding significantly higher prices.
Prime areas like Palermo and Recoleta average $3,500-$4,300 per square meter, while Belgrano ranges from $3,200-$3,800 per square meter. These represent the most expensive residential areas in the city.
Comparing to five years ago, the situation is complex. In 2020, city-center apartments averaged $2,028-$2,600 per square meter, meaning nominal USD prices have increased modestly. However, when adjusted for inflation and peso devaluation, real property values have dropped by up to 70%.
This dramatic decline in real terms reflects Argentina's economic instability, with persistent high inflation and currency devaluation eroding actual property worth despite stable or slightly higher USD pricing.
The disconnect between nominal and real prices creates a challenging environment for both buyers and sellers in the Buenos Aires property market.
What rental yields can you expect in different Buenos Aires neighborhoods?
| Neighborhood | Gross Rental Yield | Average Monthly Rent |
|---|---|---|
| Palermo | 4.5% - 5.8% | $655 USD |
| Recoleta | 4.0% - 5.5% | $620 USD |
| Belgrano | 3.8% - 5.0% | $580 USD |
| Puerto Madero | 3.5% - 4.0% | $750 USD |
| Studios (citywide) | 8.0% - 9.0% | $450 USD |
| San Telmo | 5.0% - 6.5% | $520 USD |
| Villa Crespo | 5.5% - 7.0% | $480 USD |
How has peso devaluation affected foreign investor returns over five years?
The Argentine peso has lost substantial value against the US dollar over the past five years, creating significant currency risk for foreign investors.
Annual inflation has sometimes exceeded 100%, with the peso depreciating at similar rates against major foreign currencies. This devaluation has eroded real estate values and rental income when measured in peso terms.
However, foreign investors who structure deals in USD are better protected from this currency volatility. Most quality properties in central Buenos Aires are priced, sold, and rented in USD, which shields investors from peso fluctuations.
The key strategy for foreign investors is ensuring all transactions—both purchase and rental agreements—are denominated in USD rather than pesos to maintain value stability.
Despite USD protection, the overall economic instability affects property demand and market liquidity, impacting even USD-denominated investments through reduced buyer interest and longer sale times.
What are the total transaction costs for foreign buyers in Buenos Aires?
Foreign buyers should expect total transaction costs of 6-9% of the property purchase price when buying in Buenos Aires.
The property transfer tax represents 3.6% of the sale price, typically shared between buyer and seller but often paid entirely by the buyer in practice. This is the largest single cost component.
Notary fees add 2-2.5% of the sale price and are mandatory for completing the legal transfer of ownership. These fees cover the notarial services required for property registration.
Stamp duty usually amounts to 3.6% of the transaction value, though first-time homebuyers may qualify for reduced rates. Registration and deed fees, plus agency commissions, contribute an additional 1-2%.
All these costs must be paid upfront in cash, typically in USD, as financing options are extremely limited for foreign buyers in the Buenos Aires market.
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Are there restrictions on foreign property ownership and profit repatriation?
There are no restrictions on foreigners buying or owning property in Buenos Aires, making it one of the more accessible markets for international investors.
Foreign ownership follows a freehold structure through "escritura" title, providing full ownership rights equivalent to local buyers. This includes the right to sell, rent, and transfer property freely.
Profit repatriation is legally possible but can be complicated by Argentina's currency controls and exchange regulations. Most overseas investors work around these challenges by receiving and sending funds in USD through local wire transfers or offshore accounts.
The currency control system, while not prohibiting repatriation, can create bureaucratic delays and require specific documentation for large transfers. Professional guidance is essential for navigating these processes.
It's something we develop in our Argentina property pack.
How stable are rental contracts and what legal protections exist for landlords?
Rental contract stability has improved significantly for landlords following recent regulatory changes in Argentina's rental market.
The elimination of strict rent controls in 2023 has restored landlord flexibility, allowing more frequent rent adjustments and shorter minimum contract terms. This deregulation has made rental property ownership more attractive.
Current regulations allow landlords to negotiate rental increases more freely and establish contract terms that better reflect market conditions, rather than being constrained by government-imposed limits.
However, landlord risks remain, including potentially slow eviction processes and various tenant protection laws that can complicate dispute resolution. These legal protections for tenants can create challenges for property owners.
Overall, conditions have become notably more favorable for property owners since 2024, with the regulatory environment shifting to support landlord interests while maintaining basic tenant protections.
What are the vacancy rates across different Buenos Aires neighborhoods?
Vacancy rates in Buenos Aires vary significantly by neighborhood, with prime areas generally maintaining lower vacancy levels than secondary locations.
Citywide, vacancy rates historically range from 8-15% overall, but this broad average masks significant neighborhood variations. The overall rate reflects both premium and budget areas.
Prime neighborhoods like Palermo, Recoleta, and Belgrano typically experience much lower vacancies of 4-8%, especially for well-priced, furnished apartments that appeal to both local and international tenants.
Higher-end areas maintain better occupancy rates due to stronger demand from affluent locals, expats, and business travelers who prefer established, safe neighborhoods with good amenities and infrastructure.
Vacancy rates tend to be seasonal, with lower rates during peak rental seasons and higher rates during slower periods, particularly affecting short-term rental properties more than long-term leases.
How has inflation impacted real estate values and rental income over the past decade?
Persistent high inflation has severely impacted Buenos Aires real estate, with rates often exceeding 100% annually in recent years.
This extreme inflation has eroded peso-denominated returns and local purchasing power, causing real estate values in USD terms to drop significantly in real terms over the past decade.
Property values have been particularly affected, with real estate losing substantial value when adjusted for inflation, despite nominal USD prices appearing relatively stable or even increasing slightly.
Rental income has faced similar pressure, with peso-denominated rents losing purchasing power rapidly unless indexed to USD or inflation rates. This has driven many landlords to demand USD-denominated rental agreements.
The inflationary environment affects both capital appreciation potential and rental yield calculations, making USD-pegged investments essential for maintaining real returns in the Buenos Aires market.
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 long does it take to resell property in Buenos Aires and how liquid is the market?
The average time to resell property in central Buenos Aires ranges from 8-12 months, making it a relatively illiquid market compared to more stable economies.
High-demand neighborhoods may sell faster than the average, particularly properties priced competitively in USD and located in areas like Palermo or Recoleta with strong international buyer interest.
Market liquidity for foreign sellers can be particularly challenging, as the pool of potential buyers who can pay in USD is limited compared to peso-denominated transactions.
The extended sale timeline reflects broader economic uncertainty, limited financing options, and the need to find buyers with substantial cash reserves willing to transact in foreign currency.
Properties that are well-maintained, realistically priced, and located in established neighborhoods tend to sell faster, while those in secondary locations or requiring significant investment may take considerably longer to find buyers.
What role do cash transactions play and can foreigners access mortgages?
Cash transactions dominate the Buenos Aires real estate market, with approximately 95% of all deals paid in full cash due to limited financing availability.
Local mortgage access is extremely restricted for both Argentine citizens and foreigners, making bank financing virtually unavailable for property purchases. The few existing mortgage products have prohibitive terms.
Foreigners generally cannot access local mortgages and must bring USD cash to complete transactions. This cash requirement represents a significant barrier to entry for many international buyers.
The cash-only environment stems from Argentina's banking system instability, high interest rates, and currency volatility that makes long-term peso-denominated loans impractical for both lenders and borrowers.
This financing structure means buyers need substantial liquid capital upfront, limiting the market to cash-rich investors and eliminating the leverage opportunities common in more developed real estate markets.
What recent political and regulatory changes have affected foreign property owners?
The removal of national rent controls in 2023 represents the most significant regulatory change benefiting property owners in recent years.
This deregulation has revived landlord flexibility in setting rental terms, allowed more frequent rent adjustments, and improved overall rental yields by removing government-imposed pricing constraints.
No new formal restrictions have been implemented specifically targeting foreign property owners, maintaining the open ownership policy that has historically characterized Buenos Aires real estate.
However, existing exchange controls persist and continue to potentially limit profit repatriation, though these are economic policy tools rather than targeted foreign ownership restrictions.
It's something we develop in our Argentina property pack.
How do property maintenance costs compare to expected rental income?
Ongoing property maintenance and management costs typically consume 25-35% of gross rental income in Buenos Aires, significantly impacting net returns.
These costs include property taxes, building maintenance fees (expensas), insurance, property management fees, and routine repairs, all of which must be factored into investment calculations.
Net rental yields are generally 1.5-2 percentage points below gross yields once these expenses are accounted for, meaning a 5% gross yield becomes approximately 3-3.5% net yield.
Building maintenance fees can be particularly high in premium developments, especially in neighborhoods like Puerto Madero or modern Palermo developments with extensive amenities and services.
Property management becomes essential for foreign owners, adding 8-12% of rental income in management fees but providing local expertise for tenant relations, maintenance coordination, and rent collection.
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 real estate presents significant challenges for foreign investors, with currency volatility and economic instability creating substantial risks despite unrestricted ownership rights.
While rental yields appear attractive at 3.8-5.8% and property ownership is straightforward for foreigners, the requirement for cash transactions, complex repatriation processes, and dramatic real value declines make this a high-risk investment environment requiring careful consideration and professional guidance.
It's something we develop in our Argentina property pack.