Rise In Real Estate Prices Over Past 5 Years

very accurate post by lacoquetta.

And I also want to highlight that immobilarias ( real estate agents) worldwide are a bunch of greedy conniving crooks. If you are the buyer, they will tel you everything is damn expensive. If you are the seller, they will tell you the prices are super down. Their first goal is to bring yr morale down and then play with you mentally, so that they can manipulate you.
Yes....and all Congoleese are savages.

No Ceviche, you cannot generalize that all of any people or profession are anything. Nancy and I were Realtors for over 30 years and if my clients wouldn't mind I could send you a list of many hundreds of satisfied customers . I am not alone in being an honest, moral and service oriented realtor. There are bad apple in every basket but it's wrong to generalize about all apples.

Sincerely, T/
 
"speculator"?
seriously?

no- I own ONE apartment in buenos aires, and I live in it.

and the examples I talk about are not from speculators.
in any real estate market, there are always good deals and bad deals.
there are always places that are overpriced, or are in bad locations, or are not very nice, that will not appreciate much.

but in the "money crescent", ranging from San Telmo to Belgrano, I can come up with example after example of apartments that have doubled in value in the last 5 to 8 years.

I look at real estate all the time, even though I am not buying, as a kind of hobby.
I know that 5 or 6 years ago, you could buy apartments in villa crespo for well under $100k USD, and that those same apartments now are going for much more- maybe not yet double, but 50% to 75% more.

The palermo examples I gave have nothing to do with "speculation"- they are casas chorizo, and people who own them live in them, in most cases, although some of them are now small boutiques or restaurants, which has helped them to be worth more.
But even on the "wrong" side of Scalabrini, near Honduras and, say, Arraoz, an average pre second world war freestanding house is easily worth double today what it was a few years ago.

I have no experience with barrios outside of Gnl Paz- and it would not surprise me at all if prices there have gone up less.
But in the center of town, I know of many many examples of prices going up far more than a few percent.
Entire neighborhoods have changed dramatically in the last few years. Prices have followed.
I know people who used to live in Palermo or Barrio Norte, who are now in Barracas, or Villa Crespo, as the prices of real estate march up farther and farther south.
The area south of Corrientes was very very cheap five years ago- now, near Cementario Chacarita, its booming, with tons of new art galleries, trendy restaurants, and stores, and home prices are going up.

I have bought and sold a lot of houses, buildings, and land, in the USA over my lifetime always using it myself, not speculation- and I know that ALWAYS you have to consider the neighorhood, the trends, the character and condition of the building- if you dont, you dont see any rise in value.
I made money on a studio building I owned in South Central LA- because it was the "right" building, the neighborhood had a terrible rep.
And if you bought the right building in La Boca, or Boedo, or other not so trendy barrios here, you could still do well. If not, not.
 
Hey Ries. I think you are right about prices pretty much doubling over 8 years. Just look at inflation in Buenos Aires over the last 8 years. My real question is what a "casis chorizo" ?

T/
 
a casa chorizo is the Porteno version of a shotgun shack- long and skinny.
Most lots here are just about 30' wide (actually 8.66 meters)
but very deep.
A casa chorizo, a sausage house, is narrow but deep. Inside, they have tall ceilings, hidden patios, and are usually pretty nice places to live, cool and remote from the street.
There were tens of thousands of them built in Buenos Aires between 1880 and the early fifties. Many are being torn down now, and replaced by the cheapest possible 7 story 7 unit concrete apartment buildings.

http://www.posadapalermo.com/casachorizo.php
 
Hey, citygirl. Closest thing to price comparison and analysis here is Reporte Inmobiliario.

They have some free analysis on the website but you can get some good in-depth stuff if you subscribe for a month including barrio prices guides that are broken right down to a block-by-block, street-by-street level; legal tools; and rental/investment forecasts.

It's not as good as tools other available in other countries (valuations are just estimations — real pricing data isn't made public here as most properties are intentionally under- or over-valued to cheat the tax-man or the next buyer), but its the best Argentina has.
 
Thanks all - I did take a look at the reports mentioned above but yeah, as always, real data is pretty hard to come by. I talked to a few escribanos I know as well and the consensus was that real estate prices have actually not increased (dollars wise) in the last 4 years. 2012, prices went down a bit and while they're recovering, there isn't huge difference btw prices now and 2012 (according to them). At least in the mature barrios - palermo, recoleta, belgrano, et al

Over 10 years (I think someone mentioned 2007) yes, big increase if you compare now/then but not so much if you compare 2016 to 2013. At least that's the info I got.
 
Sounds about right. And all the meanwhile us renters are getting royally shafted by soaring rental prices outstripping inflation.
Peso prices have tripled in four years. In Palermo, tourist rentals now cost the same as 2-year contracts when you add in expensas, servicios, ajustes, and commissions.
 
I doubt real estate prices, in dollars, have increased. Why? There are several conditions necessary for that to happen, and all these have been absent in BA. What are these conditions? The first, and most important, is that demand has to outstrip supply. What causes excess demand? Job growth, or the creation of new jobs and the resulting growth of employment. This has la lacked for many years in BA.
Affordability is another key variable and we all know that with no simple mortgages in BA, affordability is super low. Finally, in BA, housing is mostly paid in dollars, And for many years there has been capital flight, which means there are fewer dollars to make deals in the city

Conclusion? It's nearly impossible for real estate prices to have increased for many years in BA. However, I believe these will appreciate significantly over the next 5 years or so, so now is a great time to buy.
 
"speculator"?
seriously?

no- I own ONE apartment in buenos aires, and I live in it.

and the examples I talk about are not from speculators.
in any real estate market, there are always good deals and bad deals.
there are always places that are overpriced, or are in bad locations, or are not very nice, that will not appreciate much.

but in the "money crescent", ranging from San Telmo to Belgrano, I can come up with example after example of apartments that have doubled in value in the last 5 to 8 years.

I look at real estate all the time, even though I am not buying, as a kind of hobby.
I know that 5 or 6 years ago, you could buy apartments in villa crespo for well under $100k USD, and that those same apartments now are going for much more- maybe not yet double, but 50% to 75% more.

The palermo examples I gave have nothing to do with "speculation"- they are casas chorizo, and people who own them live in them, in most cases, although some of them are now small boutiques or restaurants, which has helped them to be worth more.
But even on the "wrong" side of Scalabrini, near Honduras and, say, Arraoz, an average pre second world war freestanding house is easily worth double today what it was a few years ago.

I have no experience with barrios outside of Gnl Paz- and it would not surprise me at all if prices there have gone up less.
But in the center of town, I know of many many examples of prices going up far more than a few percent.
Entire neighborhoods have changed dramatically in the last few years. Prices have followed.
I know people who used to live in Palermo or Barrio Norte, who are now in Barracas, or Villa Crespo, as the prices of real estate march up farther and farther south.
The area south of Corrientes was very very cheap five years ago- now, near Cementario Chacarita, its booming, with tons of new art galleries, trendy restaurants, and stores, and home prices are going up.

I have bought and sold a lot of houses, buildings, and land, in the USA over my lifetime always using it myself, not speculation- and I know that ALWAYS you have to consider the neighorhood, the trends, the character and condition of the building- if you dont, you dont see any rise in value.
I made money on a studio building I owned in South Central LA- because it was the "right" building, the neighborhood had a terrible rep.
And if you bought the right building in La Boca, or Boedo, or other not so trendy barrios here, you could still do well. If not, not.


I agree that prime areas in central BA have soared. Recoleta, Palermo, Barrio Norte etc. A lot of the city, however, is relatively poor so I doubt that those areas have had nearly as much increase. Definitely neighborhood is the MAJOR factor in real estate. Even if the building is not the best, if located in a prime area it will sell for a good price.

Regarding real estate agents here: I have dealt with a couple who were dishonest (also beware escribanos. I had a bad experience with one and a friend got seriously cheated by another) however I also dealt with two who were honest and helpful. In one case the agent represented a woman who had an unrealistic idea of the value of her property. The agent tried to get her to lower it. She refused. I had left a deposit contingent on the owner's selling at the price I asked for. There was a deadline. She failed to meet the deadline and the agent promptly returned my money. Then a day later she changed her mind. By that time I had spoken to Argentine friends who discouraged me from the purchase (they did not approve of the address of the property) and I decided to back off. The agent did not try to dissuade me. He said that the seller got what she deserved for being greedy. Another pathetic story: I saw a property that I liked. Spoke to the agent. Offered five thousand less than the asking price. The agent was outraged and said "Any American can get another $5,000". "Well, not this one" I answered. He would not ever take my offer to the seller. A few weeks later a friend passed the agency, on a major street in Recoleta, and saw the property marked "vendido". Seems the seller took less money than I had offered! Pure arrogance on the part of the agent.
 
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