Residential Lot prices in Buenos Aires
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.
Current lot prices in US dollars in different neighborhoods:
Villa Urquiza: $200 – $400
Flores: $400
Almagro: $400 – $500
Núñez: $400 – $500
Barracas & San Telmo: $500
Caballito: $600 – $700
Belgrano: $700 – $1,000
Palermo Nuevo: $750 – $950
Barrio Norte: $800 – $1,000
Recoleta: $1,200 – $1,400
Puerto Madero: $1,200 – $1,800
Barrio Parque & Palermo Chico: $1,500
The increase in the price of land has spawned changes in the rules of the game. Though some developers pay property owners in cash, it is increasingly more common to pay owners a combination of cash and constructed square meters. In addition to a cash amount, the owner receives a designated number of completed units in the development, usually no more than 25% of the finished construction.
Keep up with the latest trends in Buenos Aires Real Estate: