Real Estate Sales For sale: Property prices in the City had the largest increase in the last 6 years - La Nacion Propiedades

[BuySellBA]

For sale: Property prices in the City had the largest increase in the last 6 years - La Nacion Propiedades​

Source:

Para la venta: los precios de las propiedades en la Ciudad tuvieron el mayor aumento de los últimos 6 años

El mercado inmobiliario poco a poco muestra signos de mejora; el precio promedio por metro cuadrado de publicación en la Ciudad registró el mayor incremento mensual en los últimos 6 años

www.lanacion.com.ar

May 3, 2024

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The real estate market is slowly showing signs of improvement; The average price per square meter of publication in the City registered the largest monthly increase in the last 6 years.

Properties in the City had the highest monthly increase in the last 6 years

In the midst of a scenario where the real estate market is gradually reactivating , the average price per square meter (publication) in the City of Buenos Aires registered the largest monthly increase since April 2018 , according to the latest Zonaprop report.

The publication value increases 0.8% in April and stands at US$2,219 . If we look at the first four months of the year, prices accumulate an increase of 1.9% , while in the year-on-year comparison prices rise by 2.5%. This rise could be explained by the increase in the cost of construction which , measured in dollars, registers an increase of 40.4% in 2024. Currently, building costs almost triple what it cost in October 2020 , the minimum in the series , and 34.9% above the 2012-2023 average.

These numbers are reflected in increases in units to be sold. In April, 79% of the neighborhoods registered a monthly (publication) price increase, with well apartments being the ones with the greatest increase. For its part, the average publication price of the apartments rose by 1.9%.

Puerto Madero leads the ranking of the most expensive neighborhoods to rent in the City of Buenos Aires

The Zonaprop report exemplifies the prices by pointing out that a 40 m² studio apartment has a price of US$98,109 for sale, while a two-room apartment of 50 m² is worth US$117,474 and a three-room apartment of 70 m² is worth US$161,697 (all with publication prices).

In the neighborhood price ranking, Puerto Madero continues to be first on the podium, defending the highest values on the market , with a price of US$5,858/m². Palermo (US$3,108/m²) and Belgrano (US$2,827/m²) are still on the list . On the other hand, Lugano remains the most affordable neighborhood with an average value of US$981/m². It is followed by Nueva Pompeya (US$1,350/m²) and La Boca (US$1,443/m²).

The average price per square meter in the City of Buenos Aires is US$2,219

A market that is slowly reactivating​

Slowly, the real estate market shows signs of improvement, not only due to the increase in property values, but also due to inquiries. The numbers from the Zonaprop report show that demand for apartments grew 7% month-on-month and 70% compared to the same month of the previous year.

The report also refers to the volume of writings which, in March 2024, was 18% higher than the same month in 2023. This year, the volume of writings registers an increase of 16% compared to the volume of 2023 , although still 8.5% below 2019 and 48% below 2018.

The construction cost measured in dollars registers an increase of 40.4% in 2024

Another positive symptom is reflected in the fact that the volume of apartments for sale priced downwards stops falling in the last six months and remains stable at 18% in the first quarter of 2024. According to the report, the drop in the volume of advertisements delayed is one of the factors that explain the increase in the price registered since July 2023.

Investments in CABA​

For those interested in investing, the rent/price ratio in profitability stands at 4.84% annually, which is why it registers a slight recovery. Today it takes 20.6 years of rental to recover the investment, 2.1% less than what was required a year ago.

Lugano, the neighborhood that defends the lowest prices for sale, is presented as the best place for investors looking for income, with an average return of 7.3%, followed by Balvanera, with a return of 6.1%, and by La Boca, with a return of 6%. For their part, two of the neighborhoods with the highest prices, Palermo (4%) and Belgrano (4.2%), are the ones that generate the least profitability .

The rent/price ratio in CABA stands at 4.84% annually



www.buysellba.com

 

[FuturoBA]

Just saw this graph. Looks like prices bottomed around Oct 2023 and so far rising ~13%.

 

[BuySellBA]

Just saw this graph. Looks like prices bottomed around Oct 2023 and so far rising ~13%.
View attachment 5659

That is correct. The cost to build has drastically gone up over the past few months. So that increase will be priced into asking prices soon. Now add into the mix that banks are offering mortgages to locals and you should see demand and prices go up drastically over the next few years.

More than 64,500 inquiries to request new mortgage loans

May 16, 2024

buysellba.com

 

[earlyretirement]

Just saw this graph. Looks like prices bottomed around Oct 2023 and so far rising ~13%.

Congratulations! You bought your apartment at a great time. I told anyone that would listen last Fall to load up on real estate in Buenos Aires. I posted how it was a no brainer and we were at the absolute bottom. I was waiting several years on the sidelines and forecasted that it was at rock bottom. I haven't been wrong yet in 22+ years buying and selling real estate in Buenos Aires but always nice to see the numbers back it up.

 

[Sunny]

We were lucky to reserve our place at October's prices. Feel bad for locals, though. I wouldn't want real estate in this country to be like in the US, Canada, and Europe. But it sure looks like that's where it is heading...

 

[Betsy Ross]

Congratulations! You bought your apartment at a great time. I told anyone that would listen last Fall to load up on real estate in Buenos Aires. I posted how it was a no brainer and we were at the absolute bottom. I was waiting several years on the sidelines and forecasted that it was at rock bottom. I haven't been wrong yet in 22+ years buying and selling real estate in Buenos Aires but always nice to see the numbers back it up.

Congratulations. I saw several of your posts about buying. I am glad to have already purchased a condo many years ago. It was a hassle to constantly renew rentals or rush to find a new place. The mortgages should push up prices like it did when they had them before in 2016-2018.

 

[Vince]

We were lucky to reserve our place at October's prices. Feel bad for locals, though. I wouldn't want real estate in this country to be like in the US, Canada, and Europe. But it sure looks like that's where it is heading...

That's great you bought last year! I doubt it will ever be like it is in the States. Most people here make very low salaries and interest rates aren't fixed like the USA. These mortgages here can be quite toxic depending on what inflation is like. Prices in the US and Canada are insane. But I do see prices going up here. The last peak many friends sold small apartments for high prices. I guess with Milei we will most likely see prices peak over those prices.

 

[earlyretirement]

We were lucky to reserve our place at October's prices. Feel bad for locals, though. I wouldn't want real estate in this country to be like in the US, Canada, and Europe. But it sure looks like that's where it is heading...

Congrats to you as well @Sunny for buying last year. That was really the best time to buy.

That's great you bought last year! I doubt it will ever be like it is in the States. Most people here make very low salaries and interest rates aren't fixed like the USA. These mortgages here can be quite toxic depending on what inflation is like. Prices in the US and Canada are insane. But I do see prices going up here. The last peak many friends sold small apartments for high prices. I guess with Milei we will most likely see prices peak over those prices.

Correct. These mortgages aren't for everyone but most likely you will see anyone that can qualify will probably jump at the chance because they have no alternative. Demand and inquiries for them are very high so it is inevitable that you will see prices going up. You are correct on the last time there were mortgages. I sold about 95% of my client's portfolio at the top of the market in 2018 and some in 2019.

 

[Wally]

Construction costs have skyrocketed. Same as land prices. My neighbor works for a developer and says costs have jumped up. He said the same thing that prices have no place to go but up.

 

[Sunny]

Congrats to you as well @Sunny for buying last year. That was really the best time to buy.

Thanks! We reserved in January at October prices and signed in March. Everything about the purchase of this place was extremely weird not just compared with how easy it had always been buying/selling in the US (the previous owners are difficult people, to put it kindly). But the long wait paid off, so no complaints.

 

[Betsy Ross]

Thanks! We reserved in January at October prices and signed in March. Everything about the purchase of this place was extremely weird not just compared with how easy it had always been buying/selling in the US (the previous owners are difficult people, to put it kindly). But the long wait paid off, so no complaints.

Oh wow you got lucky if you bought in January 2024 and you got October prices. There are a lot of strange sellers here so you're not isolated to that @Sunny. When I bought my place many years ago the owner wanted to declare 50% of the true value. I refused to do that. We kept going back and forth with them eventually agreeing to declare most of the property. But they did not declare 100%. They first said I could pay abroad but then did not allow it as they did not have their account in the USA declared with AFIP. It was a major hassle.

I have friends that purchased here and almost none of them found the process easy or without big hassles. It is not like the US where things are easy and no cash.

 

[earlyretirement]

Thanks! We reserved in January at October prices and signed in March. Everything about the purchase of this place was extremely weird not just compared with how easy it had always been buying/selling in the US (the previous owners are difficult people, to put it kindly). But the long wait paid off, so no complaints.

Oh wow you got lucky if you bought in January 2024 and you got October prices. There are a lot of strange sellers here so you're not isolated to that @Sunny. When I bought my place many years ago the owner wanted to declare 50% of the true value. I refused to do that. We kept going back and forth with them eventually agreeing to declare most of the property. But they did not declare 100%. They first said I could pay abroad but then did not allow it as they did not have their account in the USA declared with AFIP. It was a major hassle.

I have friends that purchased here and almost none of them found the process easy or without big hassles. It is not like the US where things are easy and no cash.

SO true! Trust me, I've purchased over 600+ properties here over the past 22 years on behalf of myself and investors and it's almost never easy. Weird is putting it mildly on many properties but the key is having a great Escribano. But even today it is chaotic buying. I could tell you some horror stories.

 

[LongIslander]

Thanks! We reserved in January at October prices and signed in March. Everything about the purchase of this place was extremely weird not just compared with how easy it had always been buying/selling in the US (the previous owners are difficult people, to put it kindly). But the long wait paid off, so no complaints.

Just about anyone I heard that purchased in BA said they dealt with difficult sellers. The only time I heard of things going smoothly is when the seller is a foreigner. I love Argentina but I wouldn't say people there are that easy. Many Argentines would agree they are a pain in the ass. I have relatives from there and they themselves complain how difficult their family is there.

 

[Sunny]

Just about anyone I heard that purchased in BA said they dealt with difficult sellers. The only time I heard of things going smoothly is when the seller is a foreigner. I love Argentina but I wouldn't say people there are that easy. Many Argentines would agree they are a pain in the ass. I have relatives from there and they themselves complain how difficult their family is there.

Well, this was an elderly couple, both in very good shape, but they drove their agent, our agent, the real estate office, the escribano, and us crazy.

 

[Sunny]

SO true! Trust me, I've purchased over 600+ properties here over the past 22 years on behalf of myself and investors and it's almost never easy. Weird is putting it mildly on many properties but the key is having a great Escribano. But even today it is chaotic buying. I could tell you some horror stories.

Yes, our escribano is a true gem and so was the real estate firm we worked with. Amazing people.

 

[Vince]

Well, this was an elderly couple, both in very good shape, but they drove their agent, our agent, the real estate office, the escribano, and us crazy.

Same as when I bought. Very old couple that were impossible. I thought the deal would fall apart many times. I guess this is normal here.

 

[Uncle Wong]

Just saw this graph. Looks like prices bottomed around Oct 2023 and so far rising ~13%.
View attachment 5659

Great for all of you that already bought last year. Bad for those of us still looking. Prices are going up faster than I thought they would. Milei is fixing things too quickly! I thought I would have more time to look.

 

[Johnny]

Just saw this graph. Looks like prices bottomed around Oct 2023 and so far rising ~13%.
View attachment 5659

I was very very very very lucky to have bought at the absolute bottom of the market in August 2023. I hired @BuySellBA and they told me it wouldn't get any lower than that and they were right. Plus the market was softer than so developers were more motivated. They negotiated a monthly USD rent for me that I get until the building was done. They aren't doing anything like that now!

Prices have rebounded more than this in some properties. My penthouse neighbor has offered to buy my apartment. Every few months offering more and more. I'm not selling!

 

[earlyretirement]

Yes, our escribano is a true gem and so was the real estate firm we worked with. Amazing people.

The Escribano is the MOST important part of the process. I can't emphasize that enough. You can have the best property in the world but if you have a bad escribano it could be worthless as there can be issues. I always say that and you'd be surprised how many times people try to save money or go with someone that the realtor recommends. Sometimes you don't even know there is an issue until you go to sell the property.

I was very very very very lucky to have bought at the absolute bottom of the market in August 2023. I hired @BuySellBA and they told me it wouldn't get any lower than that and they were right. Plus the market was softer than so developers were more motivated. They negotiated a monthly USD rent for me that I get until the building was done. They aren't doing anything like that now!

Prices have rebounded more than this in some properties. My penthouse neighbor has offered to buy my apartment. Every few months offering more and more. I'm not selling!

I'm so happy for you @Johnny. You bought at a great time. I can't wait to break bread in your new Penthouse apartment.