Is it a good time to buy a property in Mendoza?

Authored by the expert who managed and guided the team behind the Argentina Property Pack

Yes, the analysis of Mendoza's property market is included in our pack

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Mendoza. If you'd like to learn more about us, you can check our presentation page.

What's the current average property price in Mendoza?

The average residential property price in Mendoza stands at $1,200 USD per square meter as of September 2025.

Premium neighborhoods like Chacras de Coria command significantly higher prices, with condominiums reaching $140,000. These upscale areas attract both local affluent buyers and international investors seeking luxury properties with vineyard views and proximity to wine tourism attractions.

More affordable areas such as Las Heras and Godoy Cruz offer entry-level opportunities, with smaller units priced between $30,000 to $40,000. These neighborhoods provide good value for first-time buyers and investors targeting the local rental market, particularly university students and young professionals.

A typical one-bedroom apartment of 60 square meters costs approximately $72,000, making Mendoza accessible compared to Buenos Aires where similar properties cost significantly more. This pricing structure positions Mendoza as an attractive market for both domestic buyers and foreign investors seeking Argentine real estate exposure.

It's something we develop in our Argentina property pack.

How have property prices in Mendoza changed over the past few years?

Mendoza property prices increased by 4.3% over the past year, rising from $1,150 to $1,200 per square meter.

The five-year trend shows a total increase of 26%, with property values climbing from $950 to $1,200 per square meter. This represents an average annual appreciation rate of 5.2%, indicating steady but moderate growth that outpaces inflation while remaining sustainable.

Prime areas and tourism-focused neighborhoods have driven much of this growth, benefiting from increased domestic travel and growing international interest in wine country properties. Areas near major vineyards and tourist attractions have seen the strongest appreciation, with some premium locations experiencing double-digit growth.

Market forecasts suggest continued moderate increases of 3-7% annually through 2026, supported by ongoing infrastructure development and economic stabilization measures. This growth pattern appeals to investors seeking steady appreciation without the volatility seen in other emerging markets.

The price trajectory reflects broader Argentine economic recovery and Mendoza's strengthening position as a lifestyle and investment destination.

What is the current mortgage interest rate in Argentina?

The average mortgage interest rate in Argentina reaches 37.84% as of September 2025, up from 33.55% the previous month.

The central bank's benchmark rate was 29% as of January 2025, having decreased significantly following several cuts in response to moderating inflation. However, mortgage rates remain substantially higher than the benchmark due to risk premiums and banking sector considerations.

These high interest rates make cash purchases the preferred option for most property buyers in Mendoza. Foreign investors, particularly those with access to hard currency, find themselves at a significant advantage in the market as they can avoid the burden of expensive local financing.

Local buyers who require financing often seek alternative arrangements, including seller financing or partnerships with investors who can provide cash upfront. The high cost of borrowing has created opportunities for cash buyers to negotiate better purchase prices.

As inflation continues to moderate, mortgage rates are expected to decline gradually, but they will likely remain elevated compared to international standards for the foreseeable future.

Are there any government incentives or tax benefits for buying property in Mendoza right now?

The Argentine government offers tax incentives for real estate investments under frameworks like the Bases Law and the RIGI regime.

These programs include stable legal protections and potential reductions on certain property taxes for qualifying investments. The RIGI (Regime of Incentives for Large Investments) provides particularly attractive benefits for substantial projects, though individual residential purchases typically don't qualify for the most significant incentives.

Provincial and municipal governments in Mendoza have implemented their own incentive programs, particularly for developments that support tourism infrastructure or renewable energy projects. These local incentives often focus on commercial and mixed-use developments rather than residential purchases.

Foreign investors benefit from Argentina's open property ownership laws, allowing non-residents to purchase and own real estate without major restrictions. While specific tax incentives for individual buyers are limited, the legal framework provides strong protections for foreign ownership.

Property buyers should consult with local tax advisors to understand potential benefits and ensure compliance with all applicable regulations and reporting requirements.

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What is the current level of housing supply and demand in Mendoza?

Mendoza currently experiences strong demand with rising market activity, as evidenced by a 45% surge in property sales during 2025.

Mortgage approvals rose 40% year-over-year, indicating robust buyer interest despite high interest rates. This suggests that cash purchases and alternative financing arrangements are driving market activity, particularly among investors and affluent buyers.

Property listings move quickly, especially in sought-after areas near the city center and expat-friendly neighborhoods. The combination of limited quality inventory and strong demand has created a seller's market in many desirable locations.

The rental market shows equally strong fundamentals, with approximately 3,074 active Airbnb listings as of July 2025. This healthy rental supply meets robust demand from tourists, digital nomads, and business travelers drawn to Mendoza's wine country and business opportunities.

Long-term rental demand remains solid in central areas and neighborhoods popular with expatriates, supporting steady occupancy rates and rental growth for investors targeting the traditional rental market.

How is the local economy in Mendoza performing at the moment?

Mendoza's economy is experiencing significant growth driven by renewed tourism, major infrastructure projects, and increased foreign investment.

The tourism sector has rebounded strongly, benefiting from both domestic travel growth and increasing international visitors attracted to the region's wine industry and natural attractions. This recovery directly supports property values, particularly in areas catering to short-term rentals and hospitality.

Major infrastructure developments are creating thousands of new jobs in logistics, energy, and construction sectors. The Palmira Bypass project and renewable energy investments have attracted substantial capital and skilled workers to the region, boosting local purchasing power.

The province's strategic position as a logistics hub connecting Argentina with Chile and Pacific markets has attracted significant investment in transportation and distribution facilities. This economic diversification reduces dependence on agriculture and creates a more stable foundation for property market growth.

Improved economic stability, combined with the influx of skilled workers and foreign investment, has helped real estate values recover from earlier declines and positioned Mendoza for continued growth.

What is the inflation rate in Argentina and how could it affect property investments?

Argentina's annual inflation rate slowed to 117.8% in December 2024, down from peaks near 300% in previous years.

This declining inflation trend, while still high by international standards, represents significant progress toward economic stabilization. The moderation has contributed to lower borrowing costs and revived real estate market activity as investors seek inflation-hedged assets.

Real estate typically serves as an effective inflation hedge in Argentina, as property values and rents tend to rise with general price levels. Properties priced in USD or tied to hard currency provide additional protection against peso devaluation and inflationary pressures.

The improving inflation trajectory has restored confidence in medium-term planning and investment decisions. However, investors should remain cautious as high inflation persists and could erode returns unless property values and rental income continue to appreciate at or above inflation rates.

Foreign investors with hard currency exposure benefit significantly from the current environment, as they can purchase peso-priced assets at favorable exchange rates while maintaining value in stable currencies.

Are there any upcoming infrastructure or development projects in Mendoza that could impact property values?

Several major infrastructure projects are underway that will significantly impact Mendoza's property market and economic development.

It's something we develop in our Argentina property pack.

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.

What are rental yields like for properties in Mendoza?

Mendoza offers attractive rental yields through both short-term and long-term rental strategies as of September 2025.

Short-term rental properties generate average annual revenue of approximately ARS 6,000,000 (about $7,000 USD) with Airbnb properties commanding an average nightly rate of $51. The occupancy rate of 38.5% demonstrates strong tourism demand and effective property management opportunities.

Long-term rental yields on one-bedroom units typically range from $400-600 per month, with premium areas commanding higher rents and occupancy rates. Properties in central locations and expat-friendly neighborhoods maintain the strongest rental performance due to consistent demand from professionals and international residents.

The combination of growing tourism, increasing digital nomad activity, and expanding local business presence supports robust rental yields across different property types. Wine tourism and business travel create year-round demand that helps maintain stable occupancy rates.

Investors focusing on properties near universities, business districts, or tourist attractions benefit from the strongest rental performance and lowest vacancy rates in the current market environment.

Are there any legal or regulatory issues that could affect buying property in Mendoza?

Argentina's legal system provides strong protections for property buyers, including foreigners, through comprehensive oversight and registration requirements.

The purchase process requires notary oversight, strict title checks, and public registry confirmation to ensure clean ownership transfer. These requirements, while sometimes time-consuming, protect buyers from common issues like title fraud and undisclosed liens.

Key risks include potential title fraud, undisclosed liens, and squatter situations, particularly for properties that haven't been properly maintained or vetted. Due diligence and independent legal advice are strongly recommended for all transactions, especially for foreign buyers unfamiliar with local practices.

Foreigners can generally buy and own property without major restrictions, though certain rural purchases require additional certifications and approvals. Urban residential properties face minimal restrictions, making Mendoza accessible to international investors.

Working with experienced local legal counsel and real estate professionals helps navigate the regulatory environment and ensures compliance with all applicable laws and procedures.

What do local real estate experts say about the property market outlook in Mendoza?

Local real estate experts maintain optimistic outlooks for Mendoza's property market through 2025 and beyond.

Professional forecasts predict continued moderate price growth of 3-7% annually, supported by increased foreign investment and healthy demand from both domestic and international buyers. Tourism-oriented and premium neighborhoods are expected to outperform the broader market due to their appeal to international buyers.

Market fundamentals are recovering in line with national stabilization policies, improved infrastructure development, and revived mortgage access for qualified buyers. The combination of economic stability measures and local growth drivers creates a supportive environment for sustained property market growth.

Experts emphasize growing appeal among expatriate communities drawn to Mendoza's lifestyle, climate, and wine culture. This demographic shift supports long-term demand for quality housing and creates opportunities for investors targeting the international resident market.

Rental and purchase activity is expected to remain elevated as Mendoza's reputation as a wine and lifestyle destination continues to grow, attracting both tourists and permanent residents seeking quality of life improvements.

How does buying property in Mendoza compare to other similar regions in Argentina?

Mendoza offers significant advantages compared to other major Argentine property markets, particularly in terms of affordability and yield potential.

Mendoza's property prices are approximately half those of Buenos Aires while offering competitive returns through tourism and rental demand. This price differential creates significant value opportunities for investors with hard currency, particularly those seeking exposure to Argentina's wine and tourism sectors.

The combination of lower entry costs, ample lifestyle and tourism appeal, and strong yield opportunities makes Mendoza a standout market for buyers seeking both investment returns and personal enjoyment. The city's international profile continues to grow, supporting long-term appreciation potential.

Compared to coastal cities like Mar del Plata, Mendoza offers more consistent year-round demand rather than seasonal fluctuations. Unlike industrial centers such as Córdoba, Mendoza's economy benefits from tourism diversification and international appeal.

It's something we develop in our Argentina property pack.

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.

Sources

1. The Latinvestor - Mendoza Price Forecasts
2. The Latinvestor - Mendoza Property
3. The Global Economy - Argentina Mortgage Interest Rate
4. Trading Economics - Argentina Interest Rate
5. The Latinvestor - Argentina Property Investment
6. IBA - Incentive Regime for Large Investments in Argentina
7. Airbtics - Annual Airbnb Revenue in Mendoza Argentina
8. Latam News - Mendoza as Strategic Logistics Hub
9. Inspenet - Genneia Solar Park in Mendoza
10. PV Tech - Genneia Solar PV Plant Argentina