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The new Urban Planning Code warns that land prices will rise by up to 40% and construction will be halted - Ambito Financiero
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www.ambito.com
August 28, 2025
By Jose Luis Cieri
The new Urban Planning Code seeks to reorient construction towards the south of the city with building incentives and stricter limits in the north.
The real estate market in the City of Buenos Aires is experiencing a period of uncertainty following the reform of the Urban Planning Code (CUR) , approved by the Buenos Aires Legislature at the end of 2024. Various specialists warned that the new regulations, far from regulating urban growth, will reduce construction capacity in large areas, increase the price of land, and discourage new projects. According to estimates, land values could rise by up to 40%, with a direct impact on the final price of homes.
One of the key points highlighted is the transfer of income to landowners. The modification of the CUR limits the possibility of building in residential neighborhoods where higher density was previously permitted. As a result, urban income is concentrated among landowners, without this translating into more built square meters. For specialists, the additional income for families will ultimately be capitalized into higher housing prices, not greater access to housing.
The full impact has yet to be felt because construction costs remain at historically high levels. The dollar value of construction fell 2.3% in August, but remains 107% above the October 2023 level and triples the 2020 figure. According to industry analysts, when this variable stabilizes, the pressure on land will be more clearly reflected in the final price of properties.
At the end of the year, the Buenos Aires City Legislature also defined Priority Development Areas in Constitución, Avellaneda, and Pompeya. According to the Buenos Aires City Government, the challenge is to provide infrastructure and financing so that the plan is not limited to the regulatory level.
Along the same lines, Gonzalo Bustos , director of FOT Libre, stated that the increase has not yet been fully reflected because construction costs remain very high . "Today, the increase in land prices is driven by the cost of building, but as soon as that variable stabilizes, it will be reflected in prices. The effect will be felt strongly in a short time," he explained.
For his part, Alan Schachter , an architect and consultant specializing in urban planning codes and the land market, warned that the new framework not only increases land prices but also introduces delays and discretion in project approval. “Three out of four initiatives in the City must go through the General Directorate of Urban Interpretation. Each project is subject to the interpretation of an official. There are no clear parameters, and that opens the door to distortions,” he noted.
Bustos was blunt in pointing out who benefited from the reform: "The only beneficiaries were those who own land along avenues, because the rest of the city lost construction capacity. It's a setback in terms of urban mix and quality."
Levrio agreed, pointing out that the public discussion was reduced to specific complaints from residents without a long-term city model. “We are never going to widen streets for more cars or narrow sidewalks. The evidence is clear: a compact city is more efficient and equitable. But there are still those who believe that the neighborhood belongs to them and that densification should be avoided,” he said.
The southern part of the city was once again left behind. “Self-construction, which was the main means of accessing housing in these neighborhoods, was practically prohibited. This condemns thousands of families to informality, without the possibility of obtaining deeds or accessing credit,” Levrio stated.
Barracas is one of the neighborhoods in the south of Buenos Aires where the new Urban Planning Code seeks to attract investment and add multi-family housing.
Bustos added that the incentives designed to promote development in the south had no real impact. “The additional construction capacity was tailor-made for a couple of developers. It doesn't solve the underlying problem. What's needed is public investment and access to credit.”
He also recalled the European experience, where excessive regulations led to a housing crisis, and the case of Santiago, Chile, where peripheral expansion led to mobility problems. "Buenos Aires' advantage is that it can still increase density in established areas, but to do so, it needs clear and predictable rules," he emphasized.
All three recalled that in 2021, the first revision of the CUR corrected serious technical errors and raised positive expectations, but the latest reform introduced such strong restrictions that, according to Levrio, "they will end up collapsing on their own due to being unworkable."
He stated: "Horizontal property regulations require unanimous agreement among co-owners to change uses, and that's not feasible in many buildings. National adjustments are needed to allow for this transformation."
The final diagnosis was shared: the reform of the CUR increases the price of land, slows down projects, and concentrates benefits in the hands of a few stakeholders. Bustos summarized: “Cities aren't designed in a day or during an election campaign. We must define which areas to preserve, which to reconvert, and which to renovate. Without a vision for the city's future, any code is doomed to failure.”
Levrio agreed on the need to design evidence-based policies. “We are increasingly relying less on individual talent and more on data. Next time, we must take advantage of this to avoid improvised debates and think about a more compact and accessible city,” he concluded.
www.buysellba.com
Source:
Por el nuevo Código Urbanístico alertan que la tierra subirá hasta 40% y se frenará la construcción
Especialistas advirtieron que la reforma del CUR reducirá la capacidad constructiva, encarecerá el suelo y generará trabas para nuevos proyectos.
www.ambito.com
August 28, 2025
By Jose Luis Cieri
The new Urban Planning Code seeks to reorient construction towards the south of the city with building incentives and stricter limits in the north.
The real estate market in the City of Buenos Aires is experiencing a period of uncertainty following the reform of the Urban Planning Code (CUR) , approved by the Buenos Aires Legislature at the end of 2024. Various specialists warned that the new regulations, far from regulating urban growth, will reduce construction capacity in large areas, increase the price of land, and discourage new projects. According to estimates, land values could rise by up to 40%, with a direct impact on the final price of homes.
One of the key points highlighted is the transfer of income to landowners. The modification of the CUR limits the possibility of building in residential neighborhoods where higher density was previously permitted. As a result, urban income is concentrated among landowners, without this translating into more built square meters. For specialists, the additional income for families will ultimately be capitalized into higher housing prices, not greater access to housing.
The full impact has yet to be felt because construction costs remain at historically high levels. The dollar value of construction fell 2.3% in August, but remains 107% above the October 2023 level and triples the 2020 figure. According to industry analysts, when this variable stabilizes, the pressure on land will be more clearly reflected in the final price of properties.
CUR Objectives
The new CUR seeks to reverse the historical imbalance between the north and south of the city. The central tool is the Additional Construction Capacity (CCA) , which allows for the generation of square meters in southern neighborhoods such as Lugano, Pompeya, Constitución, Barracas, La Boca, and Villa Olímpica and transfers them to high-value areas such as Palermo, Belgrano, and Núñez. The system also rewards the enhancement of heritage buildings and the transfer of green spaces. The goal is to create a "Polycentric City" and encourage a mix of uses. However, no applications have yet been initiated: the model is currently in the analysis and consultation phase.At the end of the year, the Buenos Aires City Legislature also defined Priority Development Areas in Constitución, Avellaneda, and Pompeya. According to the Buenos Aires City Government, the challenge is to provide infrastructure and financing so that the plan is not limited to the regulatory level.
Opinions
However, there are questions about the effectiveness of the CUR. “The impact can be up to 40% on the final price of properties. All of this increase is transferred to the landowner, who is the only beneficiary. Family income will not translate into more square meters, but rather into higher prices. That is the opposite of what urban planning should be seeking,” said Santiago Levrio , institutional director of Alianza Urbana.Along the same lines, Gonzalo Bustos , director of FOT Libre, stated that the increase has not yet been fully reflected because construction costs remain very high . "Today, the increase in land prices is driven by the cost of building, but as soon as that variable stabilizes, it will be reflected in prices. The effect will be felt strongly in a short time," he explained.
For his part, Alan Schachter , an architect and consultant specializing in urban planning codes and the land market, warned that the new framework not only increases land prices but also introduces delays and discretion in project approval. “Three out of four initiatives in the City must go through the General Directorate of Urban Interpretation. Each project is subject to the interpretation of an official. There are no clear parameters, and that opens the door to distortions,” he noted.
Restrictions and discretion
The effect of these revisions is a parallel market for land with already approved plans, which is more sought after by developers to avoid uncertainty. "Instead of transparency, what we see is an opaque system, with obstacles that discourage investment," Schachter added.Bustos was blunt in pointing out who benefited from the reform: "The only beneficiaries were those who own land along avenues, because the rest of the city lost construction capacity. It's a setback in terms of urban mix and quality."
Levrio agreed, pointing out that the public discussion was reduced to specific complaints from residents without a long-term city model. “We are never going to widen streets for more cars or narrow sidewalks. The evidence is clear: a compact city is more efficient and equitable. But there are still those who believe that the neighborhood belongs to them and that densification should be avoided,” he said.
Neighborhoods with unequal impact
Specialists warned that the implementation of the CUR has a very different impact depending on the area. In neighborhoods like Villa Ortúzar, Villa del Parque, and Núñez, construction capacity has been reduced in height and depth, which has devalued many plots of land. "In many cases, a house that was once valuable as land is now sold only as a used home because it no longer allows for the development of large-scale projects," Levrio explained.The southern part of the city was once again left behind. “Self-construction, which was the main means of accessing housing in these neighborhoods, was practically prohibited. This condemns thousands of families to informality, without the possibility of obtaining deeds or accessing credit,” Levrio stated.
Barracas is one of the neighborhoods in the south of Buenos Aires where the new Urban Planning Code seeks to attract investment and add multi-family housing.
Bustos added that the incentives designed to promote development in the south had no real impact. “The additional construction capacity was tailor-made for a couple of developers. It doesn't solve the underlying problem. What's needed is public investment and access to credit.”
International comparisons
The experts also drew parallels with other markets. Levrio believed that Buenos Aires still has opportunities that other capitals don't: "Three out of four buildings in the city have ground floors and one story. Buenos Aires is practically a town, but we all live in dense neighborhoods, and that creates a perception of saturation."He also recalled the European experience, where excessive regulations led to a housing crisis, and the case of Santiago, Chile, where peripheral expansion led to mobility problems. "Buenos Aires' advantage is that it can still increase density in established areas, but to do so, it needs clear and predictable rules," he emphasized.
A code under constant review
Another problem highlighted is the lack of predictability. "Every three or four years, we find ourselves in a vicious circle where construction stalls while we wait for changes. This makes it impossible to plan for the long term," Bustos said.All three recalled that in 2021, the first revision of the CUR corrected serious technical errors and raised positive expectations, but the latest reform introduced such strong restrictions that, according to Levrio, "they will end up collapsing on their own due to being unworkable."
The challenge of the Microcentro
The Buenos Aires downtown area also came up in the discussion. For Schachter, the area has enormous potential due to its infrastructure and architecture, but faces regulatory obstacles to converting offices into residential areas.He stated: "Horizontal property regulations require unanimous agreement among co-owners to change uses, and that's not feasible in many buildings. National adjustments are needed to allow for this transformation."
The final diagnosis was shared: the reform of the CUR increases the price of land, slows down projects, and concentrates benefits in the hands of a few stakeholders. Bustos summarized: “Cities aren't designed in a day or during an election campaign. We must define which areas to preserve, which to reconvert, and which to renovate. Without a vision for the city's future, any code is doomed to failure.”
Levrio agreed on the need to design evidence-based policies. “We are increasingly relying less on individual talent and more on data. Next time, we must take advantage of this to avoid improvised debates and think about a more compact and accessible city,” he concluded.
www.buysellba.com
