Investing in Argentina Property

Country:  Argentina

Bordered by Chile, Bolivia, Paraguay, Brazil and Uruguay, Argentina covers an area of 2.6 million kilometres (almost a third that of the USA) and runs down to the southernmost tip of South America, a mere 1,000 miles from Antarctica.

The south, understandably, can get a little chilly, but, the climate in the east central region (the Pampas) is generally warm and pleasant, with the summer sun shining down on the capital Buenos Aires for an average nine hours a day.

And Buenos Aires is far and away the most important location for investors, expats and holiday homers, with its mix of European colonial and modern skyscraper architecture, its lively (not to say Raucous) festival calendar, and locals for whom football, tango and klatches (protracted chin-wagging over a coffee) are far more important than mere life and death.

There’ll be no harping on in this feature about the ‘hand of god’ incident, nor the Falklands – potential property buyers will doubtless feel more concerned about Argentina’s historic tendency towards a yo-yoing economy.

The fact is, though, Argentina’s economy has seen solid growth since the horrendous devaluation of its currency back in 2002. Now the future looks very bright and this is reflected in rising property prices, especially in the popular neighbourhoods within Buenos Aires, such as Recoleta, Barrio Norte and Puerto Madero.

Prices for property (almost entirely apartments) in areas such as these run to around £800 per square metre, which, compared with today’s London prices of £8,000 or more per square metre, could be called cheap at twice the price, and annual rental returns of up to eight per cent in the city and, perhaps six in the suburbs, are also good.

Edward Balme of Tierra Estates, selling land and property in Buenos Aires, says: “In the last five years, Buenos Aires has started to be recognised not only as highly affordable but also as one of the top fashionable cities for Europeans and Americans to come to live.”

One problem for property buyers looking to pick up a Buenos Aires bargain, however, is the difficulty in finding a mortgage, as well as the high interest rates being charged. Currently, in fact, over 90 per cent of the Argentina property is being bought outright.

Balme, though, sees this as another positive sign for the future, stating: “There is little danger of being affected by a credit crunch as its [the property market’s] exposure to the credit market is minimal”.

For those keen to take advantage of what Buenos Aires has to offer, but also looking for a little more space than a city centre apartment can offer, the Move Channel is currently marketing land plots at Estancia Villa Maria, an exclusive country club resort some 45 minutes’ drive from the city.

Incorporating a golf course, polo club, equestrian centre, tennis facilities and a 30,000-square-metre spa, Estancia Villa Maria offers the high life, but can also keep the kids entertained with pool, basketball, a kids’ club and, of course, plenty of football. Prices for plots start from $88,000 (£44,000).

If, however, you really want to be in the heart of the upmarket action in Buenos Aires, the super-chic Palermo Tower offers one- and two-bedroom apartments, as well as a swimming pool, gym, Jacuzzi and expansive terraces for taking in the city views.

Someplace Else is marketing the development, which will be completed early in 2010, and a pre-construction discount is offered, with prices from around £54,000. 


First published in October 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.