Bs As real estate in the future

Denver

Registered
pericles:

When Recoleta, Palermo, Barrio Norte, etc. are all maxed out, -meaning they are out of reach for the vast majority of Argentines and all but the top foreign speculators; which neighborhood will we be looking to next?

Neil
 

thebookcellar

Registered
Take any short walk in Belgrano and you will see huge numbers of buildings going up - especially in the few blocks from the railway line to the diagonal heading towards the River stadium - and the prices are still creeping upwards:
Urbanica are a constructor i have bought from and they have a very impressive building going up on Libertador...
 

Davidglen77

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I think some other (less known) neighborhoods will also continue to flourish as Recoleta, Palermo, Barrio Norte, continue to get more and more expensive by the day. Almagro and Belgrano are growing in leaps and bounds and I see that these other neighborhoods are growing fast (lots and lots of construction) buildings with fancy amenities:

Colegiales
Villa Urquiza
Nuñez
 

gouchobob

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Denver said:
pericles:

When Recoleta, Palermo, Barrio Norte, etc. are all maxed out, -meaning they are out of reach for the vast majority of Argentines and all but the top foreign speculators; which neighborhood will we be looking to next?

Neil
The assumption here seems to be that foreign speculators will continue to arrive by the boat load driving prices higher until properties in the toniest areas are out of reach by all but the few and that then new areas will be where the money is to be made. If this is an accurate assessment of the assumptions being made I think there is a major flaw in the thinking. Local property values and local incomes are closely tied. If locals are priced out then it's going to take a tremendous number of new foreign arrivals to keep the market propped up. If this doesn't happen (not likely in my opinion) then wouldn't prices tend to revert over time to levels where local buyers with local incomes can enter the market?
 

citygirl

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I would look at Belgrano - seems to be a fair amount of buildings going up, easy public transportation options (subway, bus, etc), clean, green, etc.
 

perry

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gouchobob said:
The assumption here seems to be that foreign speculators will continue to arrive by the boat load driving prices higher until properties in the toniest areas are out of reach by all but the few and that then new areas will be where the money is to be made. If this is an accurate assessment of the assumptions being made I think there is a major flaw in the thinking. Local property values and local incomes are closely tied. If locals are priced out then it's going to take a tremendous number of new foreign arrivals to keep the market propped up. If this doesn't happen (not likely in my opinion) then wouldn't prices tend to revert over time to levels where local buyers with local incomes can enter the market?[/quote Gouchobob

When I read posts like these I roll my eyes backwards as you are implying that foreigners and them alone are the reason for prices of property going up . The reality is completely different to what is the truth as foreign investment in these areas of Almagro, Belgrano, Caballito, Colegiales, Nunez etc etc is less than 1 percent .

In Argentina there is a very wealthy upper class that comprise 10 to 15 percent of the population over 5 million potential clients . Now where do they invest and what do they do with their monies Gouchobob?

Most real estate markets are completely out of the reach of the working class. This is unfortunate but the reality . Tell me why in Moscow Russia or Tehran Iran property prices per square metre in areas similar to Recoleta and Palermo sell for over US$ 15000 US dollars a metre?

In Iran and Russia the average working class wage ranges from US $ 200 to US $ 500 a month and they make up over 60 percent of the population there. If we go by your argument Gouchobob prices in most societies are incredibly overpriced and especially so in the West where a nice apartment in a World class city is easily half a million dollars.
 

tangobob

Registered
Actually a dump in central London will cost you half a million quid. Nobody working class can buy in London that is why even very high income earners travel up to four hours a day to get into work.
Pericles that is about three quarters of a million dollars, would have been a cool million when I bought my place. (I know I am violently agreeing with you):D
 

gouchobob

Registered
pericles said:
gouchobob said:
The assumption here seems to be that foreign speculators will continue to arrive by the boat load driving prices higher until properties in the toniest areas are out of reach by all but the few and that then new areas will be where the money is to be made. If this is an accurate assessment of the assumptions being made I think there is a major flaw in the thinking. Local property values and local incomes are closely tied. If locals are priced out then it's going to take a tremendous number of new foreign arrivals to keep the market propped up. If this doesn't happen (not likely in my opinion) then wouldn't prices tend to revert over time to levels where local buyers with local incomes can enter the market?[/quote Gouchobob

When I read posts like these I roll my eyes backwards as you are implying that foreigners and them alone are the reason for prices of property going up . The reality is completely different to what is the truth as foreign investment in these areas of Almagro, Belgrano, Caballito, Colegiales, Nunez etc etc is less than 1 percent .

In Argentina there is a very wealthy upper class that comprise 10 to 15 percent of the population over 5 million potential clients . Now where do they invest and what do they do with their monies Gouchobob?

Most real estate markets are completely out of the reach of the working class. This is unfortunate but the reality . Tell me why in Moscow Russia or Tehran Iran property prices per square metre in areas similar to Recoleta and Palermo sell for over US$ 15000 US dollars a metre?

In Iran and Russia the average working class wage ranges from US $ 200 to US $ 500 a month and they make up over 60 percent of the population there. If we go by your argument Gouchobob prices in most societies are incredibly overpriced and especially so in the West where a nice apartment in a World class city is easily half a million dollars.
I am afraid I will have to disagree with most of your points and believe you are misrepresenting what I am saying. All I am saying is that local real estate prices are tied to local incomes. If local prices get beyond local incomes then prices over time will look for an equilibrium point with incomes. This is just common sense. If prices get to high then the pool of potential buyers gets very small.

The last numbers I saw for Argentina were that people with monthly incomes above roughly $3,000 make up about 5% of the population, certainly not enough to support some of the prices there and I would certainly disagree that up 15% of the population is rich. There has been a big influx of foreign buyers since 2001 and while they make up a small percentage of total buyers they probably have also tended to pay top dollar, thereby driving up prices for the whole market.

Your statements on Iran and Moscow only support my points. What you have in those two places are a tiny number of people paying really high prices. Obviously the vast majority are paying a lot less for property. If this handful of very wealthy people left or their fortunes were suddenly reversed who would buy these properties. The answer is obvious, the same holds true of Argentina.

I think what you have now in B.A. are a significant number of properties that are rentals as sale prices are too high for the local incomes. The rent the owners of these properties are receiving represent little if any return today on their investments. Probably a lot of these people would like to sell and are waiting for the market to come back to where it was a couple of years ago.

I remember a until a couple of years ago people were touting purchasing apartments as investments, i.e. furnished apartments to rent to tourists. We don't hear much about this anymore. I'd like to hear from some of these people that bought the vacation rentals and how they think their investments are doing.
 

perry

Registered
I cannot believe the doom and gloomers on this site . This year Buenos Aires has had a drop in tourism mostly due to the Swine Flu and world wide economic factors.Lets look at Buenos Aires tourism compared to 10 years ago where it was practically non existent and not see that this has been a tremendous change.

The tourists will return and in three years time there will be more tourists than ever. Buying a property is not a one year prospect or a tourist season prospect its a long term investment between 7 and 10 years so if you are buying just for one season of rental do not .

In regards to Gouchobobs comments about wages and the like most earnings in Argentina are not from wages as you state . There is a wealthy class that can afford to buy properties up to a million dollars and even more in cash. Now tell me how they earnt their monies? I do not know anyone in Argentina who earns a monthly wage that can justify even a US $ 300000 dollar property . The reality like most of your comments are that in Argentina people inherit a tremendous amount of wealth due to the laws here . In the USA the state inherits a lot of this property . With this inherited wealth they can buy property or sell property to buy property .
 
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