Argentina premium real estate
According to an article published by La Nacion on November 15th 2008, (Lo premium, una opción) upscale real estate projects seem to be safe from the worldwide economic recession which has stunned the international market. Residential buildings constructed for the ABC 1 sector are still in great demand and maintain their original prices despite today's harsh economic reality.
Project developers state that this is the strongest market in this crisis because it handles its own funds. This fact is compounded by a large demand for residential real estate. In these types of projects, the square meter is valued between $3000 USD and $5000 USD, depending on the amenities and height of the building. The investment necessary is no less than $50 MM dollars.
Historically in Argentina, the premium residential market has never been affected by an economic crisis except for the occasion of Malvinas' war when all markets were completely paralized. During the first twenty days of the US crisis a decrease was noticeable due to the general uncertainty but afterwards the situation stabilized. Within the country, the real estate market is one of the best in terms of profitability. In contrast with other countries, the financial market is less directly linked to the real estate market, therefore there is no risk of a sudden price decrease within the
premium housing sector. As a result, this type of real estate is often regarded as relatively safe.
For developers, Buenos Aires is a great fund destination for foreigners since the prices of premium properties are cheap in comparison with similar projects in other countries. At present, 30% of the buyers are of foreign origin, mainly Spanish. Project developers concur that the premium market is maintaining its price levels, evolving, and becoming more versatile. On the other hand, they also concede that projects directed to intermediate and lower sectors will feel the crisis.
MORE NEWS: Click here to read more news about Argentina real estate market's conditions.
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