2024-11-01 19:04:00
Real estate prices rise in Buenos Aires city Growth in October compared with the same month in 2023 was 7.2%the largest annual increase since December 2018.
After an increase of 0.3% compared with September, The average price per square meter is US$2,321a cumulative increase of 6.6% this year.
In October, a studio apartment reached Average price is $102,267while a two-bedroom apartment is priced at $122,963 and a three-bedroom apartment is priced at $169,082.
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Inflation will top 3% in October, according to private estimates
Puerto Madero is the most expensive neighborhood to quote per square meterwith an average price of $5,985, followed by Palermo and Belgrano, with average prices of $3,212 and $3,030 respectively.
on the contrary, Lugano is the most economical community to acquire, The average price per square meter is US$983, followed by Nueva Pompeya (US$1,388) and Villa Riachuelo (US$1,505).
October, 75% of communities have monthly price increases, Annual growth accounted for 94%, and annual decrease accounted for only 6%.
construction cost
On the other hand, construction costs in U.S. dollar terms increased by 34.6% in 2024, a factor that drove up prices for existing units ($2,741) and new units ($2,745).
construction costs today 2.9 times more than October 2020the smallest value in the series, is 30.2% higher than the 2012-2023 average.
The Zonaprop report also examined the rental market and found that prices are falling below inflation.
rental price
Average monthly rental price in the city It rose 3.4% in October and will rise 57% cumulatively in 2024.almost half (108%) of inflation during that period.
- Studio: $440,643
- Two bedrooms: $524,907
- Three bedrooms: $707,201
Puerto Madero ranked first Ranking among the most expensive neighborhoods to rent, the average price is $982,766 per month.
nunez and palermo They topped the podium with average monthly earnings of $592,943 and $588,461 respectively.
on the other hand, Lugano ($391,050), Liniers ($435,474) and Avilaneda Park ($447,759) They provide the cheapest monthly quotes.
Against this backdrop, profitability continues to rise as the rent/price ratio rises, reaching 4.86% annually. It now takes 20.6 years of rent to repay the initial investmentan increase of 9.5% from a year ago.
Lugano, Parque Avellaneda and La Boca continue to top the podium for neighborhoods with the best optionsFor income-seeking investors, returns were 8.5%, 6.3% and 6.2%.
Puerto Madero and Palermo are the neighborhoods with the lowest profitability, at 3.5% and 3.9% respectively.
LM
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**Interview with Real Estate Analyst, Laura Fernández**
**Host:** Welcome, Laura! Thank you for joining us today to discuss the recent rise in real estate prices in Buenos Aires.
**Laura Fernández:** Thank you for having me!
**Host:** So, we’ve seen a 7.2% increase in real estate prices this October compared to last year, making it the highest annual growth since December 2018. What do you think is driving this sudden surge?
**Laura Fernández:** Several factors contribute to this increase. Firstly, inflation remains high, with private estimates suggesting it topped 3% in October. This devaluation of currency tends to push people towards real estate as a more stable investment. Additionally, increased demand for properties, especially in sought-after neighborhoods like Puerto Madero, has also fueled price hikes.
**Host:** Speaking of neighborhoods, Puerto Madero has the highest average price per square meter at $5,985. Why do you think buyers are willing to invest so much in that area?
**Laura Fernández:** Puerto Madero is essentially the jewel of Buenos Aires, known for its modern architecture, waterfront views, and upscale amenities. Many buyers are attracted to the lifestyle it offers, which comes with a premium cost. People are also looking for places that provide both a home and an investment opportunity.
**Host:** On the flip side, you mentioned that neighborhoods like Lugano are much more affordable with prices around $983 per square meter. Who is primarily buying in these less expensive areas?
**Laura Fernández:** Generally, the buyers in these areas are first-time homeowners or investors looking for value. These neighborhoods often cater to younger families or individuals who might be priced out of more affluent areas. With the ongoing financial crunch, they seek properties that are budget-friendly.
**Host:** It’s interesting to note that 75% of communities in Buenos Aires saw monthly price increases. Do you believe this trend will continue, or is it likely to plateau?
**Laura Fernández:** While it’s difficult to predict, I believe that as long as inflation remains high and construction costs continue to rise—having increased by 34.6% in 2024—prices will likely keep climbing. However, we could see a slowdown if economic conditions change or if interest rates rise significantly, impacting buyers’ purchasing power.
**Host:** So, concerns about the economy may impact future sales then. What advice would you give to potential buyers in this climate?
**Laura Fernández:** Buyers should conduct thorough research and consider not just the immediate price, but also the long-term value of the neighborhood. It’s crucial to look at growth trends and amenities available in the area. If possible, consulting with a real estate professional can also guide them through this volatile market.
**Host:** Thank you so much for sharing these insights, Laura. It’s certainly a dynamic time in the Buenos Aires real estate market!
**Laura Fernández:** Thank you for the opportunity!
