Driven by the recent Basic Law and growing demand in the city of Buenos Aires, the Argentine real estate market is going through a stage of marked transformation. The search for properties is oriented towards smaller and strategically located units, especially in brand new and well-developed projects. This trend responds to a change in the profile of the buyer, who is more attentive to economic and social factors when choosing their real estate investment.
New buyer profile. While traditionally buyers were middle-aged or older, today there is an increase in the participation of young people, even millennials, who are looking for their first home or a long-term investment.
The diversity of buyers in today’s real estate market reflects the breadth of the sector. From investors looking for profitability, to families who want to improve their quality of life; The public is as varied as its priorities. Factors such as price per square meter, location, amenities and the possibility of financing the purchase in the long term stand out as the most important elements in the purchase decision.
At the segmentation level, the market is outlined as follows:
–Brand new units or in Well: Studio apartments and two-bedroom apartments in neighborhoods like Palermo represent approximately 50% of the demand. This interest is aimed at units with a footage of up to 35m² for studio apartments and 45m² for two rooms, with a focus on its use for temporary rental, making it an attractive investment for the profile of buyers interested in this category.
–Used family units: Three- and four-bedroom apartments in consolidated areas such as Palermo, Belgrano, Barrio Norte and Recoleta, especially those that have a garage, cover 30% of current demand. These units usually have surfaces greater than 90m² and 120m² respectively, and differential value such as garages and storage rooms. These properties attract families who prioritize comfort and space in neighborhoods with good connectivity and services.
Added to these elements is the importance of the marketer and the support of a recognized architecture studio, increasingly determining factors for buyers in a competitive market.
Emerging trends in the real estate sector. In the midst of an inflationary context and rising construction costs, the well-developed property sector has seen an increase in prices. At the same time, the used property market becomes a very attractive option for those seeking to access mortgage loans or take advantage of money laundering facilities.
New neighborhoods such as Chacarita, Villa Crespo and Coghlan, less explored until a few years ago, are gaining popularity among buyers. These emerging areas offer a value proposition that combines proximity to the city center and relatively affordable sales prices.
Within this panorama, the demand for studio apartments and two rooms continues to grow, with average values of up to 150,000 USD, emerging as an option for investors and first-time buyers.
Today’s clients are not only looking for a property, but they value conditions such as the possibility of financing in dollars, the construction quality and the completion of the project. In this sense, the developer’s track record and reputation have an increasing weight in the final decision, given that they prefer to opt for companies with renown and experience in the sector, even when this implies a higher cost.
Tips for investing in the current market. For those considering an investment in the Argentine real estate market, it is essential to have the advice of a real estate agency with experience and knowledge in the area of interest, who can provide a correct photo of the current market in order to take advantage of the available opportunities to maximize the investment. or make the best business, such as current credit and money laundering tools
You also have to evaluate every aspect of the purchase: from the location to the developer, through the project and commercial conditions. Analyzing all these variables will allow a well-founded investment decision, in a market that increasingly offers more and better growth opportunities.
*Martin Beorlegui is Director of Entrepreneurship at Baigun Realty
by Martin Beorlegu
