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Thinking of buying a property in Mendoza? You're not alone!
Many people are drawn to Mendoza's wine country and fantasize about owning a vineyard estate or a modern apartment in this region.
Would it be a smart investment, though? Are property prices increasing in Mendoza? What is the current trend? Should I buy property in the city center or Chacras de Coria? What are the property taxes? What yields can I expect?
We know the answers.
At TheLatinvestor, we've done our homework and know this market well. As a matter of fact, we've put all our findings together in a pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How's the property market in Mendoza?
Are property values increasing or decreasing? Let's check the latest data and statistics.
Types of properties
In Mendoza, you can find various types of properties for sale, catering to different preferences and needs.
These include charming houses nestled within picturesque neighborhoods, modern apartments with convenient amenities, spacious condos offering a blend of comfort and community, serene rural properties surrounded by vineyards and nature, and commercial spaces for those seeking investment opportunities.
Whether you're looking for a cozy home, a stylish apartment, a tranquil countryside retreat, or a business venture, Mendoza offers a diverse range of properties to explore.
Buy or rent?
(If you're keeping it for yourself and not renting it)
If Mendoza is your city of choice, you may be pondering the buy vs. rent decision in this charming Argentine city known for its wine regions.
Generally, buying is a better choice than renting in Mendoza due to the city's low cost of living and the availability of affordable real estate.
Still, if flexibility is key, consider going for renting.
Property prices in Mendoza
On average, according to the updated data from Instituto Nacional de Estadística y Censos (INDEC), buying a property in Mendoza would cost you around $1,200 per square meter.
Obviously, there is a significant spread. A vineyard estate in Mendoza might have a different price per square meter than an apartment in the city center. We actually give you a more detailed breakdown in our pack for buying property in Mendoza and in Argentina.
To put things in perspective, it means that, instead of buying an apartment in New York, you can get 11 properties in Mendoza.
Also, housing prices in Mendoza are way cheaper (-52%) than in Buenos Aires.
The most expensive places in Mendoza are probably Godoy Cruz and Las Heras, while the cheapest are likely to be Maipú and San Rafael.
First and foremost, we have to acknowledge that Argentina is widely recognized, today, as a stable country. The last Fragile State Index that has been reported for this place is 47.9.
This is important to remember when wondering if it's a good investment to buy a property in Mendoza.
However, this low number is just for the short-term, as Argentina's economy is expected to soar by 7.4% in the coming 5 years, resulting in an average GDP growth rate of 1.5%.
If you want to invest in real estate in Mendoza it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.
Also, in Argentina, the average GDP per capita has changed by -1.3% over the last 5 years. It's not a good number.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Argentina right now.
Buying property in Mendoza
Buying real estate in Mendoza can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Mendoza and in Argentina.
In our pack, we've laid out all the steps involved in the buying process, including the required documents, taxes to be paid, and guidance on finding properties.
Now, we're giving you a more straightforward version to help you grasp the information more easily.
This is the step-by-step process to purchase a property in Mendoza:
- Research the Mendoza property market and set a budget in Argentine pesos.
- Engage a local Mendoza real estate agent familiar with local regulations.
- Review available properties in Mendoza and shortlist potential options.
- Conduct property inspections, considering the unique climate and terrain of the region.
- Verify the property's legal status and ownership through the "Dominio" and "Informe de Dominio."
- Negotiate the purchase price in pesos with the seller or through a "Martillero" (real estate auctioneer).
- Sign a written offer or "boleta de reserva" with specific Mendoza clauses and deposit conditions.
- Hire a Mendoza notary public ("Escribano") to conduct due diligence and create the "Borrador de Compraventa."
- Finalize the purchase agreement or "boleto de compraventa," outlining payment terms and contingencies.
- Pay the deposit (typically 30% of the property value) into an escrow account ("Cuenta Comitente").
- Complete all necessary paperwork, including the "Información Posesoria" and "Certificado de Inhibición."
- Register the property transfer at the Mendoza Public Registry ("Registro de la Propiedad") and obtain the "Escritura" (title deed).
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.
Make a profitable investment in Mendoza
Better information leads to better decisions. Save time and money. Download our guide.
Where to find a property
Discover these websites to find properties in Mendoza:
- Ricardo Sacco - Specializing in property sales and rentals in Trenque Lauquen.
- Vision - A platform for searching properties for sale or rent in the General Pico area, La Pampa, Argentina.
- Ginestet - A real estate agency located in General Pico, La Pampa, Argentina.
- Realigro - Specializing in property listings for sale in Argentina.
- Property Finder - A platform assisting users in finding properties for sale and rent throughout 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 Mendoza is $1,200. When considering costs, a one-bedroom property of 60 square meters would be roughly $72,000, and a two-bedroom with 85 square meters would come to about $102,000.
However, property prices can vary because of their qualities and where they're located.
Investing in real estate in prime Mendoza locations often costs more. A condo in Chacras de Coria could be around $140,000, while a property in Ciudad de Mendoza might cost about $130,000.
Of course, certain regions are more affordable. You may find a condominium in Las Heras for $40,000, or one in Godoy Cruz priced only at $30,000.
We give more details about property types and areas in our full pack for buying property in Argentina.
Here are the main pitfalls specific to buying property in Mendoza, Argentina:
- Land tenure issues with indigenous communities.
- Water rights and access restrictions in rural areas.
- Government regulations on foreign ownership of land.
- Potential seismic activity and earthquake-prone zones.
- Varying regional property market trends.
- Argentinian economic instability and inflation risks.
- Delays in property registration and bureaucratic processes.
- Challenges in verifying property boundaries due to informal land subdivisions.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Argentina Property Pack
Living in Mendoza
Mendoza is a beautiful, vibrant city with a great climate and plenty of outdoor activities to enjoy, making it an ideal place to buy property.
Cost of living
The cost of living in Mendoza is generally lower than in other major cities in Argentina. Prices for basic goods and services are generally lower than in other parts of the country, making it a great option for those looking for an affordable place to live.
Here are some examples to better understand the cost of living in Mendoza, Argentina:
- Rent for a one-bedroom apartment in the trendy neighborhood of "Belgrano": $500 per month.
- A meal at a local restaurant with "Asado," a traditional Argentine barbecue: $15.
- Monthly bus pass for city transportation in "Godoy Cruz": $25.
- Utilities (electricity, water) for a small apartment in "Chacras de Coria": $60 per month.
- A glass of "Fernet con Coca," a popular Argentine alcoholic drink: $4.
- Entrance fee to a "Bodega Tour" to explore Mendoza's wine culture: $20.
- Monthly membership at a gym in "Luján de Cuyo": $40.
- A bottle of local "Torrontés" white wine: $7.
Since we want to explain things clearly, we've made a table that shows the different parts of Mendoza. For yields, prices and rents, check our property pack.
The heart of Mendoza, bustling with commercial and cultural activities, making it attractive to tourists and renters alike.
High demand for rental properties, diverse property options, and potential for property value appreciation.
Property prices can be higher, limited space for new developments.
Chacras de Coria
A charming suburb with a bohemian vibe, offering a mix of vineyards, restaurants, and cultural attractions, appealing to expats and retirees.
Strong rental market for vacation homes, scenic surroundings attract tourists and buyers, potential for vineyard investments.
Limited availability of larger land plots, traffic congestion during peak tourist seasons.
An agricultural hub with wineries, olive groves, and fruit orchards, providing opportunities for vineyard or agribusiness investments.
Lower land prices, ideal for vineyard ventures, increasing popularity among wine enthusiasts.
Less developed infrastructure, limited access to urban amenities.
A suburban area with a mix of residential and commercial spaces, attracting families and young professionals.
Steady rental demand, diverse property types, and proximity to city amenities.
Property prices may fluctuate, limited opportunities for large-scale development.
Valle de Uco
A picturesque valley known for its vineyards, offering a tranquil and luxurious living experience.
Prestigious vineyard opportunities, rising interest from international buyers, high-end tourism potential.
Distance from city center, limited availability of prime properties.
A growing suburban area with residential and commercial developments, suitable for budget-conscious investors.
Affordable property prices, potential for rental income, increasing interest from young families.
Limited luxury property market, some areas may still be developing.
Lujan de Cuyo
An upscale wine region with vineyards and wineries, offering an exclusive living environment.
High-end vineyard opportunities, premium real estate market, attractive to wine connoisseurs.
Higher property prices, limited availability of large plots.
A city with a mix of urban and rural properties, providing diverse investment options.
Affordable properties, potential for agricultural and recreational investments, growing tourism sector.
Distance from Mendoza city center, some areas may have limited infrastructure.
Life in Mendoza
Mendoza is one of Argentina's most important economic hubs, with a large agricultural sector, and a strong presence in the wine, tourism, and manufacturing industries. The province has experienced economic growth in recent years, and is considered one of the most prosperous regions in the country.
What expats usually like the most about Mendoza is its laid-back lifestyle, with plenty of outdoor activities such as wine tasting, hiking, and camping, as well as its vibrant nightlife.
Access to healthcare in Mendoza is generally good, with a high number of hospitals and clinics providing quality care.
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Renting out in Mendoza
If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.
According to the data reported by Wikipedia, the home ownership rate in Argentina is 69%, which is average.
When people buy in Mendoza it's usually to live there, and not to rent out.
If you decide to rent out long-term, you might want to target people who are looking for a more affordable cost of living, such as students, retirees, or young professionals. Additionally, those who are interested in living in a culturally-rich and diverse city with a vibrant nightlife and outdoor activities would be attracted to Mendoza.
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 $
Apartment in Mendoza City
Students, young professionals
Proximity to universities, city center
$400 - $800
House in Maipú
Suburban living, vineyard views
$800 - $1500
Studio Apartment in Chacras de Coria
Bohemian atmosphere, cultural events
$500 - $1000
Condo in Godoy Cruz
Small families, professionals
Convenience, urban amenities
$600 - $1200
Now, you will probably ask us about the yields. Unlike other places, giving you an average rental yield for Mendoza is though. The region is quite varied. For example, rental yields in Mendoza City and Godoy Cruz are quite different from those in less popular areas.
Finally, know that, in Argentina, the taxes will be around 21% of the total rental income.
You could also decide to rent short-term to tourists visiting to explore Mendoza's wineries and vineyards, or to business travelers attending conferences and meetings in the area.
If you decide to go with that option, look for properties in the city center, particularly in the Abasto and Godoy Cruz neighborhoods, which are popular tourist destinations. Additionally, consider the Guaymallén and Las Heras neighborhoods, which are close to the city center and have a variety of amenities.
Currently, there are approximately 1,840 active Airbnb listings in Mendoza, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $35.
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 Mendoza can make around $500 per month. Also, the average occupancy rate is estimated at 62%.
Is it worth buying real estate in Mendoza then?
Buying a property in Mendoza can be a fantastic investment for certain individuals and situations, but it's not a one-size-fits-all decision.
If you're someone who's looking for affordable real estate, long-term residence, or rental income in a region with a lower cost of living, then Mendoza is worth considering. The diverse range of property types and the appeal of the laid-back lifestyle make it an enticing choice. Additionally, with Argentina's projected economic growth, investing in Mendoza's real estate market can potentially yield favorable returns.
However, if you're a short-term investor, risk-averse, or unfamiliar with local regulations, it might not be the right fit. Property speculation without a thorough understanding of the market or buying solely for quick gains could lead to disappointment.
Moreover, managing tourist-oriented short-term rentals requires commitment and expertise. So, while Mendoza offers attractive opportunities, it's essential to align your investment goals and risk tolerance with the unique characteristics of this market.
In summary, Mendoza can be a smart move for those seeking affordability, long-term living, or rental income in a region known for its wine culture and outdoor activities. But, if you're not planning to reside in Mendoza or aren't prepared for the potential challenges of the Argentine real estate market, it might be best to explore other investment avenues.
Ultimately, the decision should be based on your specific circumstances, risk appetite, and investment objectives, keeping in mind that thorough research and local knowledge are crucial before taking the leap into Mendoza's property market.
Make sure you understand the real estate market in Mendoza
Don't rush into buying the wrong property in Argentina. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
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