Smaller Apartments in Highest Demand
The real estate market in Buenos Aires is currently experiencing its highest demand in smaller apartments, mainly one and two bedroom units. These are sought after by first-time home buyers as well as those wishing to down-size. Most are traditional units geared toward middle class buyers, but they also provide an ideal investment opportunity.
The three most important characteristics that buyers consider when purchasing property in Buenos Aires are location, amenities, and views. The number and type of amenities offered in apartment buildings with small units are a decisive factor at the time of purchase. Good amenities such as a gymnasium, club house, swimming pool, and/or solarium, not only increase the value of a property, they lead to a faster sale. Small units in apartment buildings offering attractive amenities are sought after by young buyers, couples and couples with children. They are also purchased as rental property.
The onset of the financial crisis has not caused prices to vary in this segment. There are numerous interested buyers; however, property owners are reluctant to sell due to the uncertainty of the times and because of the lack of secure investment opportunities.
A look at different Buenos Aires’ neighborhoods reveals the following tendencies and prices:
In Villa Urquiza property owners have maintained their asking prices and there is no indication of a drop or rise in prices. Most of the real estate activity is occuring in the purchase of one-room studios to two bedroom apartments in the USD 60,000 to USD 100,000 price range. Most of the counter offers which are accepted by property owners are only five to eight percent below the asking price.
In Caballito, real estate brokers predict that the small apartment sector, sought after by investors, first-time home buyers and those down-sizing, will not see a decline in prices. Sale prices are more negotiable in locations which are not in such high demand. A standard, resale, one bedroom apartment is averaging between USD 1,000 to USD 1,200 per square meter. A new apartment of the same size is averaging USD 1,300 to USD 1,500 per square meter. Prices per square meter for two bedroom apartments are similar.
Real estate brokers agree that purchasing property is still an excellent investment opportunity. They predict that apartment units in the 60 m2 to 100 m2 range will not vary in price. They continue to get numerous calls for properties located in traditionally good locations.
Prices in the neighborhoods of Barrio Norte and Palermo are averaging USD 1,700 to USD 1,800 per square meter for resale property, while values for new properties are in the USD 2,200 to USD 2,500 range.
In the neighborhood of Belgrano, a building under construction located at Balbin and Blanco Escalada is selling two bedroom units measuring 88 to 100 m2 (with all the amenities) at USD 1,500 per square meter. It is expected that the selling price per square meter will be USD 2,000 once construction of the building is completed. From Avenida Libertador to Juramento and Dorrego, prices are ranging USD 1,800 to USD 2,000 per square meter; however, the negotiating margin is greater.
In the more exclusive neighborhoods of Barrio Norte and Recoleta, properties measuring over 150 m2 are the ones in greatest demand. Whereas, in other areas most of the apartments sold are one to two bedroom units measuring 40 to 80 m2. The laws of supply and demand will determine if prices will vary.
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