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Is it worth buying a property to renovate, and how much can the price be negotiated? - La nacion Propiedades
Source:
www.lanacion.com.ar
October 06, 2025
With historically high remodeling/construction costs and relatively low sales prices, the decision to acquire a property to renovate presents a complex scenario for buyers in Argentina.
By Candela Contreras
The answer to whether or not it is worth buying a property to renovate depends on several factors. Shutterstock
Should you buy to renovate? The dilemma is a classic one in the real estate market : buy a property in need of renovations, often at a lower price, or pay more for a move-in ready property. The answer is not unique and depends on key factors such as the purchase price, remodeling costs , location, and the type of project being sought.
For context, construction costs in dollars rose sharply in late 2023 and early 2024, reaching a cumulative increase of 112% from October 2023 to July 2025. On the other hand, the average salable square meter in the City only increased 12.65% during that same period. Meanwhile, the cost of constructing a typical building in the city of Buenos Aires increased 1.5% in August compared to July, according to the Camarco Indicator, and the cumulative increase in 2025 reached 11.9% compared to the cumulative increase of 3.29% for existing apartments .
Thus, the decision to acquire a property for renovation in Argentina is currently at a turning point , with opinions divided among market experts. While some warn about the high costs of remodeling, others see an opportunity if approached with strategy and planning.
The specialist points out that for the deal to close, you'd have to pay significantly less than the market value . Otherwise, it's better to buy a property in good condition. "The buyer believes they'll spend less money on repairs than they actually end up spending," he adds.
Dan Obetko, general manager of Interwin, clarifies the situation. While he agrees that renovation costs are "among the highest in history ," he emphasizes that the advantage lies in the product-price ratio . "What makes the deal valuable is the ability to tailor the property exactly to the buyer's tastes and needs," he explains.
"For the deal to close, we would have to pay considerably less than the market value," says Gómez Picasso. Shutterstock
The appeal is heightened by older properties with spacious rooms, high ceilings, fine materials, and flexible layouts that allow for modernizations such as adding suites or integrating the kitchen into the living room. "In these cases, investing in bathrooms and kitchens often significantly enhances the property's value," Obetko explains.
However, he highlights a common mistake: purchasing without a defined budget . "It's essential to visit with an architect, review the condition of the building, verify what additional work could increase costs, and accurately estimate materials, time, and expenses."
On the other hand, Alan Flexer, manager of the San Isidro de Narváez branch, comments that buyers generally want to remodel the kitchen and bathrooms before moving in because they are "the dirtiest, most annoying work that impedes the normal functioning of a home."
The amounts vary greatly depending on the type of property. Gómez Picasso gives an example: renovating the kitchen of a two-bedroom apartment can cost around US$6,000, while in a house in a gated community, that figure can climb to US$15,000 or US$20,000.
Added to this are the unforeseen events inherent to construction projects : facilities that need updating, longer construction times due to building restrictions, and potential cost increases.
However, there are factors that allow for a more aggressive counteroffer :
Flexer agrees that negotiation largely depends on the seller. "We're seeing deals closing at list price, others at 2% or 3% less, and some at 5%. But many sales are tied to chain transactions: the seller also goes out to buy, and that limits the negotiation margin," he explains.
Specialists make it clear that improvisation is the most common mistake when buying a property to remodel. Daniel Basualdo
In short, experts agree that today is a more favorable timeframe for those looking to move into a ready-to-move-in property , without the cost and time of a remodel. Buying to renovate can be a good option in premium locations or "with properties with great potential," but it requires careful analysis, professional advice, and a firm budget to avoid surprises.
www.buysellba.com
Source:
¿Conviene comprar una propiedad para reformar y cuánto se puede negociar el precio?
Con costos de remodelación/construcción históricamente altos y precios de venta relativamente bajos, la decisión de adquirir una propiedad para reformar presenta un complejo escenario para los compradores en la Argentina
www.lanacion.com.ar
October 06, 2025
With historically high remodeling/construction costs and relatively low sales prices, the decision to acquire a property to renovate presents a complex scenario for buyers in Argentina.
By Candela Contreras
The answer to whether or not it is worth buying a property to renovate depends on several factors. Shutterstock
Should you buy to renovate? The dilemma is a classic one in the real estate market : buy a property in need of renovations, often at a lower price, or pay more for a move-in ready property. The answer is not unique and depends on key factors such as the purchase price, remodeling costs , location, and the type of project being sought.
For context, construction costs in dollars rose sharply in late 2023 and early 2024, reaching a cumulative increase of 112% from October 2023 to July 2025. On the other hand, the average salable square meter in the City only increased 12.65% during that same period. Meanwhile, the cost of constructing a typical building in the city of Buenos Aires increased 1.5% in August compared to July, according to the Camarco Indicator, and the cumulative increase in 2025 reached 11.9% compared to the cumulative increase of 3.29% for existing apartments .
Thus, the decision to acquire a property for renovation in Argentina is currently at a turning point , with opinions divided among market experts. While some warn about the high costs of remodeling, others see an opportunity if approached with strategy and planning.
Is it a good time to buy a property to renovate?
For Germán Gómez Picasso, founder of Reporte Inmobiliario, the current situation is working against them . "Today, it's the worst possible scenario because sales prices per square meter are at historic lows, while remodeling and construction costs in dollars are the highest in history," he warns.The specialist points out that for the deal to close, you'd have to pay significantly less than the market value . Otherwise, it's better to buy a property in good condition. "The buyer believes they'll spend less money on repairs than they actually end up spending," he adds.
Dan Obetko, general manager of Interwin, clarifies the situation. While he agrees that renovation costs are "among the highest in history ," he emphasizes that the advantage lies in the product-price ratio . "What makes the deal valuable is the ability to tailor the property exactly to the buyer's tastes and needs," he explains.
"For the deal to close, we would have to pay considerably less than the market value," says Gómez Picasso. Shutterstock
The appeal is heightened by older properties with spacious rooms, high ceilings, fine materials, and flexible layouts that allow for modernizations such as adding suites or integrating the kitchen into the living room. "In these cases, investing in bathrooms and kitchens often significantly enhances the property's value," Obetko explains.
However, he highlights a common mistake: purchasing without a defined budget . "It's essential to visit with an architect, review the condition of the building, verify what additional work could increase costs, and accurately estimate materials, time, and expenses."
What kind of expenses does a repair involve?
There are areas of the house that, when renovated, significantly increase market value. Experts agree that bathrooms and kitchens are the most essential renovations and those that add the most value to a property.On the other hand, Alan Flexer, manager of the San Isidro de Narváez branch, comments that buyers generally want to remodel the kitchen and bathrooms before moving in because they are "the dirtiest, most annoying work that impedes the normal functioning of a home."
The amounts vary greatly depending on the type of property. Gómez Picasso gives an example: renovating the kitchen of a two-bedroom apartment can cost around US$6,000, while in a house in a gated community, that figure can climb to US$15,000 or US$20,000.
Added to this are the unforeseen events inherent to construction projects : facilities that need updating, longer construction times due to building restrictions, and potential cost increases.
How much can the price be negotiated?
The margin for counteroffers today is narrower than in previous years . According to Obetko, deals typically close with discounts of around 5%, and even less if the property has already been appraised, taking into account the cost of renovations. Only in cases of successions, vacant properties, or properties that have been on the market for a long time is it possible to negotiate more aggressively.However, there are factors that allow for a more aggressive counteroffer :
- Time on the market: whether the property has been for sale for a long time.
- Expense generation: if it is empty or is a succession, since “the only thing it is generating is expenses.”
- Complete renovation: If the property requires extensive or complete renovations that will prevent habitation during the construction (generally if bathrooms and kitchens need to be completed at the same time), the buyer can request a larger discount.
Flexer agrees that negotiation largely depends on the seller. "We're seeing deals closing at list price, others at 2% or 3% less, and some at 5%. But many sales are tied to chain transactions: the seller also goes out to buy, and that limits the negotiation margin," he explains.
Three key tips
To avoid surprises, experts make it clear that improvisation is the most common mistake.- A firm and professional estimate: Visiting the property with a professional (architect/master builder) is essential to obtain a firm and final estimate of the renovation and its estimated timeframe. This step prevents significant increases in the final cost.
- Check the building: Find out if the consortium or management has scheduled any maintenance or renovations in common areas, as this could increase other costs, such as utilities.
- Evaluate construction time: Consider that building renovations often have time restrictions (noise is allowed at certain times, and sometimes work is not allowed on Saturdays), which can lengthen the total construction time.
Specialists make it clear that improvisation is the most common mistake when buying a property to remodel. Daniel Basualdo
So, is it worth it or not to buy to refurbish?
The answer lies in the final equation. Obetko summarizes it with an example: “If I buy an apartment for US$200,000 and need to invest another US$70,000 in renovations, I have to verify that in that same area a unit in excellent condition costs at least US$270,000 or more. Only then does the transaction make sense.”In short, experts agree that today is a more favorable timeframe for those looking to move into a ready-to-move-in property , without the cost and time of a remodel. Buying to renovate can be a good option in premium locations or "with properties with great potential," but it requires careful analysis, professional advice, and a firm budget to avoid surprises.
www.buysellba.com
