Buenos Aires Real Estate

The “PH”, also known as “departamento tipo casa” (house-like apartment), has existed in Buenos Aires for decades, but in recent years buyers are turning to this type of housing because of the advantages it offers. 

The acronym PH stands for “propiedad horizontal”, the term used in Argentina to denote condominium property.  However, in common usage, the initials PH, refer to a specific type of condominium.  A PH has a minimum of two units on the same lot; but depending on the size of the lot, it can have more units spread over one or two floors.  Aside from its smaller number of units, a PH is characterized by having small community areas (entry hall, stairs, etc.) and does not have a manager living on the premises, both of which greatly reduce the shared monthly maintenance fees. 

Aside from reducing or eliminating monthly homeowner’s association fees, the PH also offers owners the possibility of having their own patio, terrace, or in some cases, even a private garden.  Having fewer neighbors in the building makes it easier for neighbors to get to know each other and create social ties.  Most PHs are located in areas zoned R2B, which stipulates that the constructed area can not exceed 1.6 times the lot surface, thus creating a low population density.  The lack of tall buildings in the area offers residents more open spaces and sunlight. 

The PH provides those that can not afford a home on their own lot, a less expensive alternative with a house-like atmosphere.  These advantages are attracting young professionals who utilize the larger PHs to set up their own office or artistic studio.  Families with young children find that a PH offers their children more room in which to play than a conventional apartment. 

Looking at the PH market from a developer’s stand point, construction costs for a PH range from approximately U$S 600 to U$S 800 per m2.  Construction of 4 units, measuring 100 m2 each, would cost approximately U$S 280,000.  The limited shared space of a PH reduces construction costs by 30%. 

The PH real estate market in Buenos Aires offers older PH units, as well as units in newly constructed buildings.  Older PH apartments tend to have spacious rooms.  They are either recently renovated, or a buyer can purchase a unit that needs work for a lower price and renovate the unit to his own liking.  Renovation costs run approximately 470 m2.  Costs will obviously vary according to the sophistication of the improvements made and the quality of the materials used.  Newly constructed PHs for sale are available in two, three or four bedroom units, usually all with large windows.  A new 80 m2 PH apartment with a 40 m2 private terrace in Palermo sells for about U$S 160,000. 

The highest demand in the PH market is for one bedroom units measuring between 50 and 60 m2, with a patio or terrace, in the price range of U$S 65,000 to U$S 75,000.  In general, however, the price for a PH runs between U$S 100,000 and U$S 200,000. 

As with any property in the real estate market, location is one of the prime cost factors.  Proximity to Avenida Libertador, a main North – South corridor running close and parrallel to the river, Río de la Plata, increases the price.  Lots in the highly coveted neighborhood of Palermo, make construction of a PH too expensive; therefore, developers and buyers are turning to other neighborhoods such as Saavedra, Coghlan, Colegiales, Villa Urquiza, Villa Pueyrredón, Villa del Parque, Villa Devoto, La Paternal, and Agronomía, where the cost of the land permits the construction of more affordable units.

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