Buenos Aires Real Estate

An older home can sometimes become a nightmare for its owner, whether he lives in it, has it rented out, or leaves it vacant.  Ongoing expenses and repairs never seem to end; fix one leak and another developes elsewhere.  Hinges rust, wood frames crack, electrical circuits short out; the list of headaches never ends.  Many property owners end up feeling worn out after awhile.  It is at that point that owners become prime candidates for a construction developer’s attractive offer to buy their “house”.  The house itself doesn’t hold much value, but the land it sits on certainly can be worth quite a lot depending on its location, the construction zoning regulations it falls under, and what can be constructed on it.

In a major metropolis such as Buenos Aires, vacant lots are not easy to come by.  They are essential for new construction projects and therefore, are very much in demand.  The hardest to find, are corner lots and double and triple wide lots.  Those that do exist are worth prices that are difficult to pay.  The areas in greatest demand are Puerto Madero, Recoleta, Barrio Norte, Palermo Nuevo and certain parts of Belgrano. 

The northern part of the city of Buenos Aires is the most popular, but the highest availability of lots is in the intermediate corridor between Barrio Norte and Caballito.  An area such as Almagro and Villa Crespo, where the cost of land is lower, attracts developers who find they can make a profit on their project.  Property owners, in turn, find that they can finally sell their older home at a good price, now that their neighborhood is increasing in demand.

Developers have gone westward to Flores and Caballito, where certain areas are now also in high demand.  The southern part of the city is in less demand and consequently lot prices are lower.  Within the southern area, Barracas and San Telmo are in greatest demand. 

Regardless of the area, developers seek lots located on major avenues and thoroughfares, and those in the proximity of a subway station. 

Lot prices in Buenos Aires vary depending on the location and the nature of the project to be developed.  The cost of a lot in Buenos Aires averages 30% to 50% of the final sales price of a new unit.  This percentage follows a worldwide trend, wherein the value of land in urban areas has been increasing over the last couple of decades.   In downtown Madrid, where the cost of an apartment is over 6,000 euros per square meter, the cost of land for project developers increased from 15% in 1986 to 60% in 2006.   Locally, a lot in Barrio Norte, for example, was averaging U$S 200 per m2 for over a decade and then rose as high as U$S 800 per m2.  Lately, however, developers’ reluctance to pay such high prices, an increase in costs, and a decrease in demand, have caused prices to stabalize and, in some cases, drop slightly. 

View current lot prices in different Buenos Aires neighborhoods

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