BuySellBA
Administrator
Construction costs are stabilizing: is it better to buy a brand new property or one under construction in Buenos Aires? - Ambito Financiero
Source:
www.ambito.com
November 20, 2025
By José Luis Cieri
Construction costs are stabilizing: is it better to buy a brand new property or one under construction in Buenos Aires?
There are neighborhoods where it's currently worth buying a brand new property, but construction projects are progressing well, like this building in Chacarita.
The Buenos Aires real estate market is experiencing a period of unprecedented change. The situation persists that in several neighborhoods, newly built units are more affordable for buyers and investors than apartments offered off-plan. This scenario is forcing a reevaluation of real estate investment strategies , a shift that developers and brokers are already clearly aware of.
According to data from Zonaprop, the average price per square meter for newly built properties is US$2,897 , while the price per square meter for units under construction is US$3,032 . This 4.6% difference marks a turning point, as historically, off-plan properties represented the most affordable entry-level option. The direct explanation for this shift lies in the rise in construction costs.
The cost of construction in Buenos Aires City (CABA) has exceeded US$1,300 per square meter, a figure that has tripled compared to 2020 prices and increased by 94% compared to October of the previous year. New projects incorporate this high cost, which drives up the final price of units under construction. In contrast, newly built properties set their prices based on significantly lower construction costs.
This was due to a large stock of newly completed units built at previous costs , which in turn was exhausted thanks to an intense buying and selling period, driven in part by the supply of mortgage loans.
Tabakman highlighted a recent trend: "The dollar has been rising in recent weeks in line with the overall economic situation, and this hasn't been accompanied by an increase in construction costs. Construction costs have adjusted downwards, easing some of the stress that developers have been experiencing."
According to the CEDU representative, the current situation reverses the scenario. He explained: "Today, buying off-plan in a project that's just getting started is attractive. Prices for brand-new, finished products have adjusted upwards because owners have raised the prices. Buying off-plan retains the advantage of being payable in installments while construction is underway, allowing you to take advantage of the price increases that naturally occur with properties under construction as work progresses."
Today's investor, post-election, seeks to protect financial gains in real estate , and for Tabakman, "buying off-plan is undoubtedly much more convenient, with a predictable political scenario that suggests property prices will continue to rise and mortgage lending will recover."
The well, however, retains its value as an option for accessing property for those who need a long-term payment plan.
New construction is cheaper than off-plan, but the gap has narrowed now because building values are stabilizing and are no longer rising with the momentum seen until August.
Molina also mentioned that demand is concentrated on completed units. "Completed units are receiving the highest volume of demand. This is because inquiries on the portal are not only from investors, but also from end consumers looking for move-in ready properties."
Matías Stul, from PKS Desarrollos, emphasizes that the suitability "depends directly on the buyer's profile, their situation, and their future plans." However, he defends the well option as a generator of capital.
"Today, the well continues to offer the best relationship between price and expected profitability, provided that the developer and the timing of entry are chosen well," Stul stated.
He estimated that the pre-construction purchase price is between 20% and 30% lower than the final price of the completed unit, and that financing during construction "generates an implicit return that often exceeds the yield of a traditional financial investment in dollars." Investors seeking to maximize returns in the medium term choose the pre-construction phase; those needing immediate use or a store of value opt for the completed product.
Comparison:
According to market data, today it is cheaper to buy new than under construction in the following areas (average values of US$/m2):
Stul explained the gap: "In many cases, this difference is explained by the fact that there is still a supply of brand-new units that were built with previous construction costs, lower than current ones. These projects can maintain more competitive prices. In contrast, new developments incorporate updated replacement costs and a projected inflation rate in dollars, which raises the price per square meter off-plan."
A building ready to move into in Floresta
Looking ahead, Stul doesn't foresee "a significant drop in pre-construction values." The key, he indicates, "will depend more on location selection, product quality, and flexible payment terms than on lower prices."
Mabel Korn , from Korn Propiedades, offers guidance on pricing and investment analysis. "Buying off-plan allows you to start with less initial capital, pay in installments, and take advantage of the appreciation during construction. Risks are reduced by choosing developers with a proven track record and reputable real estate agencies," she advised.
A construction project is underway on Avenida Cabildo, in the Belgrano neighborhood.
In contrast, new units typically require full payment at the time of purchase. For those interested in pre-construction projects, Korn recommended carefully reviewing the purchase agreement, negotiating reasonable down payments, and monitoring construction progress. For new units, he advised checking finishes, legal documentation, and associated costs. "In both cases, evaluate the neighborhood's development potential and seek advice from a qualified professional," he concluded.
The market's annual return is 4.8% per year, which means that an investor needs 20.5 years of rent to recover the investment.
With such a unique entry value, the brand-new unit is positioned as a high-impact option, especially for those seeking a quick return with a lower initial capital, but the financing and appreciation potential of the new construction ensure the viability of the well for a profile with long-term plans.
www.buysellba.com
Source:
Se estabilizan los costos de construcción: ¿conviene comprar una propiedad a estrenar o en pozo en CABA?
La inédita diferencia de precios y la estabilización de costos de obra reconfiguran la inversión en departamentos. La brecha de valores se redujo.
www.ambito.com
November 20, 2025
By José Luis Cieri
Construction costs are stabilizing: is it better to buy a brand new property or one under construction in Buenos Aires?
There are neighborhoods where it's currently worth buying a brand new property, but construction projects are progressing well, like this building in Chacarita.
The Buenos Aires real estate market is experiencing a period of unprecedented change. The situation persists that in several neighborhoods, newly built units are more affordable for buyers and investors than apartments offered off-plan. This scenario is forcing a reevaluation of real estate investment strategies , a shift that developers and brokers are already clearly aware of.
According to data from Zonaprop, the average price per square meter for newly built properties is US$2,897 , while the price per square meter for units under construction is US$3,032 . This 4.6% difference marks a turning point, as historically, off-plan properties represented the most affordable entry-level option. The direct explanation for this shift lies in the rise in construction costs.
The cost of construction in Buenos Aires City (CABA) has exceeded US$1,300 per square meter, a figure that has tripled compared to 2020 prices and increased by 94% compared to October of the previous year. New projects incorporate this high cost, which drives up the final price of units under construction. In contrast, newly built properties set their prices based on significantly lower construction costs.
Cost stabilization and the new paradigm
Damián Tabakman , president of the Chamber of Urban Development Entrepreneurs (CEDU), confirmed that the traditional landscape has changed in recent months. "We had a period in which brand-new properties were cheaper than buying off-plan because construction costs increased significantly," he noted.This was due to a large stock of newly completed units built at previous costs , which in turn was exhausted thanks to an intense buying and selling period, driven in part by the supply of mortgage loans.
Tabakman highlighted a recent trend: "The dollar has been rising in recent weeks in line with the overall economic situation, and this hasn't been accompanied by an increase in construction costs. Construction costs have adjusted downwards, easing some of the stress that developers have been experiencing."
According to the CEDU representative, the current situation reverses the scenario. He explained: "Today, buying off-plan in a project that's just getting started is attractive. Prices for brand-new, finished products have adjusted upwards because owners have raised the prices. Buying off-plan retains the advantage of being payable in installments while construction is underway, allowing you to take advantage of the price increases that naturally occur with properties under construction as work progresses."
Today's investor, post-election, seeks to protect financial gains in real estate , and for Tabakman, "buying off-plan is undoubtedly much more convenient, with a predictable political scenario that suggests property prices will continue to rise and mortgage lending will recover."
Pre-construction versus brand new: buyer profiles and profitability
Leandro Molina , country manager of Zonaprop, confirmed the current situation. "Today, the price of brand-new apartments is 4.6% lower than that of units under construction, an unusual scenario. Brand-new units are a strong option for those who can afford to buy, with the historical advantage of being more affordable at the moment and offering immediate rental income."The well, however, retains its value as an option for accessing property for those who need a long-term payment plan.
New construction is cheaper than off-plan, but the gap has narrowed now because building values are stabilizing and are no longer rising with the momentum seen until August.
Molina also mentioned that demand is concentrated on completed units. "Completed units are receiving the highest volume of demand. This is because inquiries on the portal are not only from investors, but also from end consumers looking for move-in ready properties."
Matías Stul, from PKS Desarrollos, emphasizes that the suitability "depends directly on the buyer's profile, their situation, and their future plans." However, he defends the well option as a generator of capital.
"Today, the well continues to offer the best relationship between price and expected profitability, provided that the developer and the timing of entry are chosen well," Stul stated.
He estimated that the pre-construction purchase price is between 20% and 30% lower than the final price of the completed unit, and that financing during construction "generates an implicit return that often exceeds the yield of a traditional financial investment in dollars." Investors seeking to maximize returns in the medium term choose the pre-construction phase; those needing immediate use or a store of value opt for the completed product.
The impact on neighborhoods and market figures
The price difference is noticeable in most neighborhoods, although there are variations. For example, in Núñez, a square meter of newly built property costs US$3,462 , compared to US$4,042 for pre-construction units. In Recoleta, the difference is also significant: US$3,435 for a newly built property versus US$3,888 for pre-construction units.Comparison:
According to market data, today it is cheaper to buy new than under construction in the following areas (average values of US$/m2):
- Puerto Madero : brand new US$6,662 / under construction US$6,607.
- Palermo : brand new US$3,901 / under construction US$3,909.
- Núñez : brand new US$3,462 / under construction US$4,042.
- Belgrano : brand new US$3,703 / under construction US$3,772.
- Colegiales : brand new US$3,416 / under construction US$3,539.
- Recoleta : brand new US$3,435 / under construction US$3,888.
- San Telmo : brand new US$2,692 / under construction US$3,047.
- Monserrat : brand new US$3,186 / well worth US$3,202.
- San Nicolás : brand new US$2,443 / under construction US$2,647.
- Parque Patricios : brand new US$2,235 / under construction US$2,617.
- Mataderos : brand new US$2,210 / under construction US$2,384.
- Monte Castro : brand new US$2,233 / under construction US$2,432.
- San Cristóbal : brand new US$2,146 / under construction US$2,359.
Stul explained the gap: "In many cases, this difference is explained by the fact that there is still a supply of brand-new units that were built with previous construction costs, lower than current ones. These projects can maintain more competitive prices. In contrast, new developments incorporate updated replacement costs and a projected inflation rate in dollars, which raises the price per square meter off-plan."
A building ready to move into in Floresta
Looking ahead, Stul doesn't foresee "a significant drop in pre-construction values." The key, he indicates, "will depend more on location selection, product quality, and flexible payment terms than on lower prices."
Key buying tips
In neighborhoods along the northern corridor (Palermo, Belgrano, Recoleta), brand-new apartments range from US$3,000 to US$4,300 per square meter, depending on the category and amenities . Units under construction range from US$2,700 to US$2,900 per square meter.Mabel Korn , from Korn Propiedades, offers guidance on pricing and investment analysis. "Buying off-plan allows you to start with less initial capital, pay in installments, and take advantage of the appreciation during construction. Risks are reduced by choosing developers with a proven track record and reputable real estate agencies," she advised.
A construction project is underway on Avenida Cabildo, in the Belgrano neighborhood.
In contrast, new units typically require full payment at the time of purchase. For those interested in pre-construction projects, Korn recommended carefully reviewing the purchase agreement, negotiating reasonable down payments, and monitoring construction progress. For new units, he advised checking finishes, legal documentation, and associated costs. "In both cases, evaluate the neighborhood's development potential and seek advice from a qualified professional," he concluded.
The market's annual return is 4.8% per year, which means that an investor needs 20.5 years of rent to recover the investment.
With such a unique entry value, the brand-new unit is positioned as a high-impact option, especially for those seeking a quick return with a lower initial capital, but the financing and appreciation potential of the new construction ensure the viability of the well for a profile with long-term plans.
www.buysellba.com
