Spotlight on...Buenos Aires
Date: 11/01/2007Buenos Aires, Argentina, is a noisy city and the public transportation system is chaotic. But the tango dancing, stylish cafés and restaurants, beautiful parks, top-quality concerts, and art exhibits make us forget the hectic pace and appreciate the city’s rich culture. The cost of living is low compared with other cities throughout the world, making B.A. the ideal place to live or visit.
For North Americans, real estate in B.A. is incredibly cheap (but you should note that you can’t get a mortgage here). Most real estate transactions are conducted in U.S. dollars. Recoleta, Puerto Madero, Palermo, San Telmo, and Barracas are the preferred neighborhoods.
Before choosing a location, find out what rental returns are for that location. Recoleta is considered one of the best areas with its traditional French-style classic architecture. One property with a large reception and separate formal dining room costs $170,000—with a predicted annual rental return of 7%.
Again, in the heart of Recoleta, a brand-new apartment with a master bedroom and bathroom, a modern kitchen, a reception and powder room, 24-hour security, a solarium, and swimming pool is on the market for $189,000. The price includes all the furniture and decorations so it’s ready for immediate rental. The predicted annual rental return of this building is 6%.
Palermo is a new and lively spot ideally suited to the rental market as it’s full of restaurants, bars, nightlife, and entertainment. Properties go for between $140 and $300 per square foot. The area is divided into four sections: Palermo Soho, Palermo Hollywood, Palermo Nuevo, and Palermo Viejo.
Palermo Viejo promises to be the next booming area of B.A. In addition to the large number of towers already under construction, there are plans to open boutique shops and restaurants, bars, and theaters. One brand-new 398-square-foot, one-bedroom apartment with air conditioning, a solarium, and swimming pool is selling for only $74,000 with an annual rental return of approximately 6%.
A prime investment opportunity is a commercial property in downtown B.A.—there is a large demand for offices in downtown areas, with 98% occupancy rate and very good rental returns. A good example is this 1,596-square-foot office for $200,000. It rents at $2,200 monthly--yielding a rental return of 9% annually.
Many new developments are springing up in old neighborhoods such as Barracas and San Telmo/Balvanera. In La Morenita, you can purchase a 454-square-foot loft in a converted coffee bean warehouse for only $50,000. The building is suitable for housing and/or offices. This is in a student neighborhood close to universities, art shops, trendy bars, tango shows, and good restaurants, so the rental potential is excellent.
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