Economy

Property values in Palermo Sur, a sub-neighborhood within Buenos Aires’ larger Palermo district, are experiencing sustained growth, rising 4.36% in 2025 compared to the previous year, according to a report by Reporte Inmobiliario. The average price per square meter for new construction reached US$3684.

The surge in Palermo Sur’s real estate market is fueled by its proximity to several universities, most notably the University of Palermo, attracting students from both within Buenos Aires and other provinces. “The universities are a magnet for these locations, and the University of Palermo draws people from the interior,” said Gabriel Brodsky, CEO of Predial, a development firm with projects in the area.

This demand extends beyond residential properties. Garage spaces in the area saw a significant increase, rising 16.67% year-over-year to an average price of US$35,000. The growth in Palermo Sur is similarly linked to a burgeoning culinary and nightlife scene, further attracting residents and investors.

While prices in Palermo Sur remain slightly lower than those in Palermo Hollywood (US$3773/m²) and Cañitas (US$4350/m²), they are comparable to Palermo Soho (US$3674/m²) and Palermo Freud (US$3571/m²). Prices are notably higher than those in the adjacent Almagro neighborhood, which averages US$2979 per square meter.

The types of properties being constructed in Palermo Sur reflect the area’s primary demographic. Mono- and two-bedroom apartments are the most common, with three-bedroom units appearing less frequently, according to Germán Gomez Picasso, director of Reporte Inmobiliario. This is attributed to the high proportion of students and young professionals seeking housing in the area.

Investment opportunities are also driving construction. Agustín Walger, director of Lepore Propiedades, estimates that rental yields in the area range from 5% to 7% annually in US dollar terms. “Many people buy as an investment, because you’re in Palermo but you don’t pay the price per square meter as high, and you can rent it out better than in Villa Crespo or Almagro,” Brodsky added.

Demand for rentals in Palermo Sur is diverse, encompassing university students, patients and visitors to nearby hospitals like Sanatorio Güemes, Sanatorio Finochietto, and Hospital Gutiérrez de Niños, and tourists drawn to Palermo’s cultural and gastronomic offerings, according to Walger.

Construction activity in Palermo Sur has remained relatively stable in recent years, with approximately 100,091 square meters under construction as of late 2025. While there was a decline in construction projects in 2021, levels have since rebounded. Seventeen new projects have been initiated recently, with less than 5% of construction completed.

Brodsky predicts continued price increases in the area, stating, “Today we are selling at values from 10 years ago in a world that has inflated, at least 40% in dollars in the last 10 years.”

The U.S. Bureau of Labor Statistics reported today that the Consumer Price Index (CPI) rose unexpectedly in January, prompting renewed debate over the trajectory of inflation and potential Federal Reserve policy shifts. The CPI increased 0.3% in January, exceeding economists’ expectations and the core CPI, which excludes volatile food and energy prices, rose 0.4% – its largest increase in several months.

President Donald Trump, speaking at a campaign rally in Michigan, asserted that his administration had “defeated” inflation and that the recent data represented a temporary fluctuation. “We have low inflation and tremendous growth. You haven’t had these numbers like this,” he stated, echoing comments made earlier this month. Still, economists are largely disputing this claim, pointing to the continued rise in prices despite a slowdown from peak levels in 2023.

The White House, in a statement released this afternoon, countered that real wages continue to climb, with an increase of $1,400 for all private-sector workers in Trump’s first year back in office. Deputy Press Secretary Kush Desai emphasized that housing inflation is cooling and prescription drug prices fell in 2025, attributing these gains to the President’s policies, including the Most Favored Nation drug pricing deals and the Great Healthcare Plan. The statement specifically highlighted gains for workers in mining, construction, and manufacturing.

The unexpected rise in core inflation has introduced a split within the Federal Reserve regarding future interest rate cuts. According to minutes from the Federal Open Market Committee’s recent meeting, a lower CPI reading is required before further consideration of rate reductions. This contrasts with earlier expectations of potential cuts in the spring. The January CPI data casts doubt on those projections.

FactCheck.org reported earlier this month that economic growth in the second and third quarters of 2025, even as significant, did not reach record levels as claimed by President Trump. The organization also noted that claims of “stagflation” during the Biden administration were not supported by federal data, with economic growth remaining positive despite high inflation. The report suggests that Trump’s tariff policies may have hindered economic growth, contrary to the President’s assertions.

CNN’s ongoing tracking of Trump’s tariff policies reveals a complex impact on the U.S. Economy. While the administration maintains that tariffs protect American jobs and industries, analysis suggests they have also led to increased costs for consumers, and businesses. The full extent of these effects remains a subject of ongoing debate.

PolitiFact’s analysis of inflation one year into Trump’s second term indicates a nuanced picture, with prices continuing to rise although some key items have become cheaper. The report underscores the complexity of assessing the administration’s impact on the economy.

The Federal Reserve is scheduled to meet again in March to assess economic data and determine its next course of action. The outcome of that meeting will likely hinge on further inflation reports and evolving economic conditions.