Buenos Aires Real Estate

From December 2009 to 2010 the average price valuation of used of apartments in Buenos Aires has risen. In general, used apartment prices have increased by a substantial 7.74%. However, the rise of value in a property varies depending very much on its location and the size of the unit and this average figure was taken from all of the city’s neighbourhoods and does not reflect the huge differences of property values between some neighbourhoods.

Out of the most popular neighbourhoods, Palermo is the area that has experienced the biggest appreciation in the prices of used apartment. The neighbourhood is so popular due to the high quality of environment here. It is one of the most fashionable areas and in this part of the city you are surrounded by trendy bars, restaurant and shops, which all add to the zone’s exclusivity. The boom in Palermo is also down to the fact that Palermo’s smaller zones located on the edge of this neighbourhood have seen a surge in development over the last couple of years. New neighbourhoods, within the Palermo perimeter, have popped up, namely Palermo Soho and Palermo Hollywood. Across the whole of the Palermo neighbourhoods, property has increased in value by a massive 20%, whereas, in comparison, in Parque Avellaneda, one of the poorest neighbourhoods in Buenos Aires, property actually decreased in value by 4.58 %. Parque Avellaneda is an example one of the areas of the city affected by poor quality if units, environment and deterioration of formal employment. This neighbourhood also bore the brunt of waves of illegal immigration that the city has experienced in the last few years, which has downturned valuations of land and property.

Even within Buenos Aires’ neighbourhoods there are discrepancies. In zones like San Nicolás, Retiro-Recoleta, Palermo, Caballito and Almagro the price of the highest valued properties can double those that are valued at the lowest price. From 2009 to 2010, the highest valued lots were 53.2% more expensive than the lowest valued properties. The gap has increased from the year before when the difference between the highest and lowest Buenos Aires real estate prices as a percentage stood at 42.9.

This all just goes to show how important it is to analyse these figures, as applying a whole blanket figure of 7.74% increase in property value across the whole city clearly obscures some important information about individual areas. This large divide in prices proves how crucial location, building quality and condition are in the Argentine capital.