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Mortgages boost Buenos Aires real estate - Ambito
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El regreso del crédito hipotecario impulsó el mercado inmobiliario en CABA: qué propiedades se venden más
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September 02, 2025
The return of mortgage loans boosted the real estate market in Buenos Aires: which properties are selling the most?
By Jose Luis Cieri
The Buenos Aires real estate market is showing dynamism with the progress of operations, the prices, still at an opportunity, and the boost in mortgage credit favored the brick environment. Pexels
In July, 6,651 deeds were signed in the City of Buenos Aires , and of that total, 1,393 were completed with a mortgage. In other words, almost 20% of the transactions were completed with financing, a level not seen in years. The figure reflects a profound change: banks are lending again, and renters are now willing to buy.
The return of financing changed the pace of operations and the demand mix. Reservations with credit conditions returned, and with solid portfolios, the time between deposit, appraisal, and deed were shortened. Banks reactivated campaigns and offered pre-approvals that regulate expectations, although recent increases in interest rates may impact future demand (only Banco Ciudad and Nación barely adjusted their rates, while private banks are now averaging 9%). Renters began evaluating installments and comparing rate and update scenarios before bidding .
Pablo Valencia Neira (who conducted the sector analysis), CEO of Valencia Neira Real Estate, highlighted the magnitude of the jump. “The number of mortgages was 500% higher than in the same month in 2024. The impact is positive not only because of the direct volume, but also because of the multiplier effect. One loan transaction usually triggers two or three additional transactions, because the seller is looking to move to a larger property and becomes a buyer,” he explained.This chain reaction impacted closing prices. According to Valencia Neira, in neighborhoods like Recoleta, average prices rose from US$1,800 per square meter in 2023 to US$2,300 today, an increase of nearly 30%. A similar increase is observed in Palermo and Belgrano, where units in good condition account for the majority of transactions.
The first-time home buyer returns
The loan revived a buyer profile that had disappeared: the first-time homeowner. The main buyers are young professionals looking for their first apartment and families who already had a small unit and now need an additional room. With financing, they can upgrade from a studio or one-bedroom apartment to a larger unit.The average mortgage transaction ranges between $90,000 and $150,000. Banks finance around 70% of the value, while the remaining 30% plus closing costs must come from the buyer's savings. In practice, someone looking for a property for $120,000 should have about $35,000 of their own to cover the down payment and costs.
Most requested
Valencia Neira emphasized that the heart of the market is two- and three-bedroom apartments. "They're the most popular. When demand drops, they hold up better; when it picks up, they're the first to increase in price," he explained. With the return of credit, three-bedroom apartments have gained prominence: many buyers who were previously limited can now upgrade to a larger unit.
2-bedroom apartment located in Recoleta. One of the most sought-after property types in Buenos Aires.
Valencia Neira Real Estate
In contrast, the 3-bedroom apartments concentrate less volume due to their higher price, although some manage to access them thanks to partial financing and higher prior savings.
According to Zonaprop, applying the "Credit Suitable" filter, the average values in the neighborhoods with the most transactions are:
- Studio apartments: from US$90,000–95,000 in 30–40 m2, up to US$120,000–131,000 in 40–55 m2.
- One bedroom: US$95,000–100,000 in 30–40 m2; US$135,000–145,000 for 40–55 m2; US$158,000–189,000 in 56–90 m2.
- Two-bedroom apartments: from $138,000–$140,000 for 40–55 m2; $179,000–$195,000 for 56–90 m2; and more than $245,000–$284,000 for apartments larger than 90 m2.
Eighty percent of this type of apartment offering is concentrated in Palermo, Recoleta, Belgrano, Caballito, Villa Urquiza, Almagro, Balvanera, and Villa Crespo. One-bedroom apartments predominate there, followed by two-bedroom apartments and studios.
Neighborhoods where credit is most effective
Middle-class neighborhoods are leading the recovery. Caballito, Almagro, Villa Urquiza, Villa Crespo, and Balvanera account for a large proportion of financing transactions because they combine more affordable prices, good transportation connections, and an abundance of small and medium-sized apartments.In Palermo, Belgrano, and Recoleta, loans are also used, although mainly for smaller units. In these areas, high prices limit the availability of loans, so buyers tend to be young professionals looking for their first studio or one-bedroom apartment. In contrast, in mid-range neighborhoods, families who already had a two-bedroom apartment and can now upgrade to a three-bedroom apartment are increasingly popular.
Challenges to access
Valencia Neira emphasized that buyers face obstacles. "Banks have tightened their filters, and many portfolios are not being approved. This makes real estate agents and sellers wary of credit-related transactions, because the probability of a fall is higher than before," he explained.
A One-bedroom apartment with a balcony was also among the most sold with credit leverage.
Employability is another critical factor. "If the buyer is at risk of losing their job, they may be forced to sell at the risk of losing their job. Added to this is the context of market ups and downs, which can complicate repayment," he added.
Tips for those seeking financing
Valencia Neira listed a series of practical recommendations:- Seek bank pre-approval before making an offer to understand the amounts and conditions.
- Book with an ad referendum clause , which conditions the purchase on credit approval and bank appraisal, with defined deadlines.
- Choose properties with impeccable documentation : ready to be signed, with no pending inheritance, with detailed expenses and clear Co-ownership Regulations.
- Have a plan B , with additional savings in case the appraisal turns out to be lower than the agreed price.
- Simulate quota scenarios , projecting increases and allowing for room in family income.
Other areas that concentrate demand
The reactivation of mortgage lending in Argentina is finding its main driver in areas with more affordable property values. Demand is concentrated in towns in the Buenos Aires metropolitan area, with a strong surge in the west and south, and in suburban areas in the interior of the country, such as Córdoba, Rosario, and Mendoza, where the price per square meter remains below US$1,000. In this regard, Sabrina Salgado Costa , a real estate market expert, noted: "Demand is moving intelligently toward areas where the relationship between property value and loan amount is most favorable."Despite initial enthusiasm, the mortgage system faces structural barriers that limit its true reach. The main challenge is the UVA adjustment without solid future income support, which creates uncertainty for borrowers. Macroeconomic instability, with the volatility of the dollar and inflation, also discourages many families. Salgado Costa, in his analysis, warned that "the lack of financial literacy and clear information about the real risks of the UVA system is an obstacle that affects a large number of users."
To achieve real coverage, Salgado Costa concluded that the sector needs complementary measures. He proposed greater legal protection, extended payment terms, and improved financial education.
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