Market Outlook

The Buenos Aires real estate market has shown great resilience during the years after Argentina’s economic default in 2002; demand and market values have recovered relatively rapidly for all major real estate sectors.

Particularly the residential and hotel markets gained momentum during the recovery period; due to a lack of confidence in the local banking system, residential investment increased which fueled the development of a variety of residential condominium buildings, most of them targeted at the high end market. The tourism industry benefited from the significantly reduced local prices, making Argentina a more affordable vacation destination for an increased number of visitors. Rural land values have also experienced growth, primarily due to the increase of commodity prices at an international level.

Accordingly, the industrial, logistics and transport industries have also shown growth. The retail market did not grow significantly in terms of new supply, however, retail rents have well recovered to the extent that in some cases they exceeded rental rates achieved before the economic crisis.

Office Market

Lease rates and condominium sales prices have experienced an incredible recovery during the last years; before the default prime lease rates averaged at $32 per square meter per month (at a time when the Argentine Peso was pegged to the US dollar 1:1). After the crash, they dropped to under $12 (US dollars).

While other goods and services in Argentina continued to maintain a relatively low peso value, prime lease rates in the waterfront submarkets (Catalinas, Plaza Roma, Puerto Madero), fuelled by strong demand and diminishing availability, increased to current levels of $25 to $35 in US dollars. Class A space in other central locations and along the northern corridor, now range from $18 to over $25.