Buenos Aires Real Estate

Developers and investors are still going ahead with their real estate construction projects, despite the worrying economy. However, they now have to reevaluate every step and keep recalculating the figures as rising construction costs complicate matters.

Developers are analyzing every minute detail and cost of developments. In the current climate land costs more than ever; the profit margins have been seriously reduced (now standing at around 15% when not too long along they were at 20%); the limited amount of developable spaces and on top of all this the global economy is faltering and the US dollar is struggling.  With of these negative factors looming over, it’s no wonder that both buyers and investors alike are asking themselves some serious questions before investing. Crushing doubts must hang over them like: Is it the right time to invest in Buenos Aires real estate? Best time to start the project? What will happen with inflation? Will the market be flooded?

Things weren’t always this stressful for investors. Just eight years ago it was guaranteed that anyone building a real estate development would make a good profit. The steadily the problems and complications began to creep in and developers were obligated to pay careful attention to location, the project as a whole and then price. Nowadays, investors have to check and monitor every detail before and during the construction process.

The best advice for investors and developers on the Buenos Aires real estate market would be to ensure that they are aware of the risks. Going into a project without knowing all of the risks and possible market changes would be disastrous for all parties involved. Some investors can be too optimistic or be in denial of the risks.

This affects everyone in the Buenos Aires real estate market from large development projects to home owners looking to construct their dream home on a plot of land. Any buyers purchasing a completed, brand-new property also have to be aware of the level of ‘finish’ required. For example, two properties valued at the same price per meter squared can have completed different facilities thrown in. For instance, one property will basically be just walls and ceiling whereas the other will come fitted with fitted wardrobes, kitchen worktops and fittings. So buyers must ensure they know what to expect from their finished property because otherwise they will end up having to pay more for decorations and fittings.