Argentina offers strong growth for investors
Every investor is looking for the right market to move capital. It’s simply a matter of getting into the right places at the correct time. Buenos Aires is one such market that can offer good returns at lower levels. With commercial property holding its prices, and residential property seeing decreased values of 2.5 percent it offers an interesting choice. You can expect stable but low returns from commercial, or alternatively look to hit the market at the right moment with a residential investment.
With Buenos Aires boasting the tallest building in Latin America (Alvear Tower), now is the time to invest in the Argentine capital. Unsold property has risen pretty much with inflation, around 30% higher than their asking price back in 2011. High-end property is likely to see a significant appreciation in the next few years.
Development in the city is proving to be a slow burner for some overseas developers. Importing commodities and building materials is challenging because of capital controls. This means deadlines have to be established with a decent tolerance for delays, as well as overruns in cost.
Property prices in Buenos Aires are among some of the lowest available in South America, with average house prices offered around $181 per square foot. Comparing this to Rio de Janeiro you’d expect something in the region of $335 per square foot.
As the market in Buenos Aires reaches its lowest price point, it’s likely to begin a strong recovery. If this process goes according to plan, higher rental and lease rates are coming, which is good for investors that bought in the crisis years.