Country Article / Postcards
Where Most of the World's Investors Haven't Thought to Look…Yet
Date: 07/22/2004Dear International Living Reader,
With real estate prices 30% lower than they were two years ago, people are flocking to Argentina to pick up bargains. Hunters may be looking at the wrong areas, though. Bigger, after all, may be better.
The January 2002 devaluation brought our peso from being worth US$1 to only 30 cents. Immediately real estate prices, always quoted in U.S. dollars, took a nosedive to bottom out six months later at 50 cents on the dollar. Since then, prices have been slowly increasing but are still 30% below December 2001 values.
Although many Argentine and foreign buyers have helped bring pricing up by taking advantage of lower values, they all seem to be focusing in the $50,000 to $250,000 range. This has not only firmed up pricing, but taken most of the attractive properties off the market …in that segment.
And therein lies the key. Scouting the upper range of the residential market recently, I came up with some amazing conclusions. This segment--anywhere over $400,000--is untouched and packed with jewels. I'm referring specifically to majestic entrances, 80-year-old cedar doors and windows, antique brass fittings, tall ceilings with elaborate mouldings, oak floors, and that great feeling of walking through a piece of art. These units are more than 3,000 square feet. Examples include a 3,180-square-foot, fully refurbished, second-floor apartment on calle Juncal, two blocks from the Sheraton Hotel and the gorgeous San Martin park. Asking price: $530,000. Another example was a similar unit in the heart of Recoleta (Buenos Aire's most upscale district), 3,840 square feet for $420,000 (though it needs refurbishment). Owners are open to negotiation.
These prices won't remain for long--there were only a few of these larger gems built in the first place. Don't wait to put your hands on the few that are left.
Paul A.Reynolds
For International Living in Argentina
E-mail: argentina@internationalliving.com
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