Buenos Aires, Argentina Real Estate Remains a Secure Investment
As the current global economic crisis makes financial investing less attractive, investing in Buenos Aires real estate continues to be a secure option.
Many people firmly believe that in the midst of economic instability, real estate is always one of the most secure investments. For many Argentines, the current world financial situation brings back memories of the national economic crisis they suffered in December 2001, when their bank accounts were confiscated, those that had US dollars were told their dollars were converted to pesos, and the pesos’ worth was cut by a third. In the midst of that crisis, however, property titles were untouched. The lesson learned was that real estate stands the test of a shaky economy, even in a crisis. Additionally, real estate investment can provide rental income.
In recent months, the sales volume in Buenos Aires dropped slightly, due more to the usual decline in summer sales than to the current economic situation; however, prices did not fall in the better locations. Sales in December 2008 had increased 11.85% from the previous month.
At present, the real estate market in Buenos Aires finds both sellers and buyers taking their time when making a decision on closing a real estate transaction. Sellers are trying to hold firm to the appraised price of their property, which maintains 2008 property values. On the other hand, buyers are looking for a good deal. In some situations this creates an impasse making it difficult for buyer and seller to find a middle ground. In transactions involving a resale property, the seller is usually planning on buying another property with the sale of his present property. In those situations, sellers are more prone to lower their asking price, if in turn they are able to purchase their new property at a lower value.
Properly appraised properties will continue to sell; whereas, those that are over-priced will need to come down to market values. In the current Buenos Aires real estate market, prices are somewhat negotiable. Counter offers are being accepted in some cases, as long as they don’t fall below 7 to 10% of the asking price.
Currently, the highest demand is for properties measuring between 90 to 150 m2, in buildings with good quality but without extra amenities. The most sought after neighorhoods are Palermo, Barrio Norte and Caballito, where resale prices average 1,700 USD per m2. The neighborhood of Belgrano is an equally attractive neighborhood with slightly more accessible prices which average between 1,500 USD to 1,600 USD per m2. Premium properties are averaging 3,500 USD per m2 but can offer an annual return of 6%.
The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires lawyer in Argentina.
