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The least thought of neighborhood in which the value of the square meter increases after three years - La Nacion Propiedades
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El barrio menos pensado en el que sube el valor del metro cuadrado luego de tres años
Un barrio bien porteño que se presenta como una oportunidad para comprar propiedades, es vecino de Palermo y de Caballito con precios más bajos pero accede a sus beneficios
www.lanacion.com.ar
February 15, 2024
A good Buenos Aires neighborhood that is presented as an opportunity to buy properties, it is a neighbor of Palermo and Caballito with lower prices but accesses its benefits
By Candela Contreras
A street in Almagro in the city of Buenos Aires, the neighborhood where the sales value of the square meter increases after three years of decline
After a three-year period of decline in the price of the square meter, a Real Estate Report report revealed that the 60-block area of the Almagro neighborhood , included between Rivadavia Avenue to the south, Córdoba Avenue as the northern limit and Medrano Avenue and Gallo Street as west and east borders respectively, experience an increase in the sales value of their properties.
“ Almagro is an area highly sought after by buyers , because on the one hand it is a traditional neighborhood with tango history, a good transportation option due to its central location and educational, commercial and cultural infrastructure. It is highly sought after due to its proximity to the benefits that Caballito offers and with more attractive prices ,” says Maria Inés Kries, commercial manager of Newland.
The Zatti House, an emblem of the Almagro neighborhood
Although in the last year the number of real estate developments, with different degrees of work, in this area of CABA was reduced from 39 to 35 , of the total number of registered ventures, none are completed. However , three constructions have progress that exceeds 90% , so they would be completed this year. In turn, 11 of the 35 developments have just begun with progress percentages of less than 4%. For its part, the year with the highest number of developments was 2010 when there were a total of 50 buildings under construction, according to the Real Estate Report.
“The transformation of properties into modern developments has revitalized the area showing its true potential. The opportunity to invest near Palermo, but at substantially lower prices (sale values in Palermo are US$3,324/m²), together with a wide range of new and used properties, makes Almagro an outstanding option for investors. “adds Hernán Nucifora, CEO of Global Investments.
In this way, the current average value of the square meter in the Buenos Aires neighborhood of development projects is located on average at US$2,953/m² . This value presents an increase of 4.23% compared to the previous year . Currently the quotes are located in a range that starts at US$2,636 per square meter and goes up to US$3,542/m² , while a year ago the floor was US$2,433/m² and went up to US$3,432 m².
Although the value increased compared to the previous year , after 3 consecutive years of decline, it still remains 12.2% below the nominal maximum recorded in 2019, in which the average sales price was US$3,363/ m².
Sales values per square meter in Almagro
One fact worth highlighting is the predominance of one- and two-bedroom units in the projects in this neighborhood , while three-bedroom apartments are less common.
For example, in buildings under construction in Almagro , a 33-square-meter studio apartment on Corrientes Avenue at 3800, in the quiet part of the building, is sold for US$116,899, that is, US$3,542 per square meter.
In examples of two environments, the following are presented:
- An apartment, in a building under construction with 3% completed, is sold for US$128,481 on the corner of Billinghurst and Córdoba Avenue.
- A 49 m² unit in a project that is 40% complete, in Guardia Vieja at 3700, has a ticket of US$153,000.
- A 42 square meter duplex at 500 Gallo is sold for US$119,000.
Buildings in the Almagro neighborhood
“The most sought after area of Almagro is the one that goes from the State of Israel to Córdoba and from Billinghurst to Corrientes,” explains Diego Migliorisi, managing partner of Migliorisi Properties, which markets real estate in the area, with values starting at US$2,200/ m² for two-room and 60m² units.
When making the comparison with the previous year, a brand new studio apartment in the Global Urbana Almagro building , located at Bartolomé Miter at 3400, which has already been completely sold, sold its units starting at US$1,800 per square meter.
Another example is that of a building located in Quito at 4300, which offers two-room units and a total area of 52 m² from US$121,000, 3-room units and 75 m² for US$170,000 and 4-room units of 84 m² with sales values ranging from US$190,000 to US$210,000.
Real estate development in Quito at 4300
The used apartments
The Real Estate Report analyzes the same area to calculate the average sales value for used properties . In this case, they are marketed at average values of US$2,143 per square meter for studio apartments. While in the case of two- and three-room units, the sales value starts at US$1,948/m² and US$1,830/m² , respectively.Therefore, it can be concluded that the average listing value from the well is 49.6% above the average value requested for used units of between one and three rooms; while the difference a year ago was 37%.
Profitability in the area: how much does an apartment rent for?
When buying a property, if one does not plan to make the investment to live, one must ask oneself about the profitability that can be obtained by renting it.Currently, it takes 18.4 years of rental to recover the investment, 24% less than what was required a year ago, according to the latest Zonaprop report . Almagro is located in the middle zone of the most profitable neighborhoods in the city of Buenos Aires, with an average annual rental return of 5.3% - in January 2023 it had been 4.3% -.
In this way, the average rental price of a two-bedroom in the Buenos Aires neighborhood is $502,045 for brand new units and $378,093 for used apartments.
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