Investors Look for Bargain Properties in Argentina

Investors Look for Bargain Properties in Argentina

 If you’re looking to sell luxury villas in Argentina, you would no doubt be frustrated at how ineffective management of the national economy by the Argentine government, which has kept property prices down for such a long time.

Since then, Argentina hit rock-bottom and is now making a comeback. The interest is high among foreign investors looking for bargain investments in Argentina. Frederico Tomasevich, CEO of Puente, which is Argentina’s biggest asset management firm says, “There are several institutional investors analysing diverse types of investments in different industries. The sector of most interest is real estate.”

Real estate brokers in the country have reported inquiries from New York, London, China and Russia. As recently as in 2013, when Brazil was on a high, and when even Colombia and Chile witnessed a real estate boom, Argentina suffered a massive decline in property prices. Suddenly homes in the country had become ridiculously cheap.

This combined with the weakening of the Argentina’s national currency, Peso and the strengthening of the US dollar makes real estate in Argentina incredibly cheap for a rich investor from the United States, which is where most of the interest in Argentina is coming from.

Foreign investors are all over Argentina today, looking for bargain deals. While commercial real estate has remained more or less stable, residential real estate has declined by 2.5%. It is dropped even further outside the main city of Buenos Aires. For sophisticated high net worth investors, this means discount shopping at its best – because, let’s face it, despite its faults, Argentina is a very attractive country with excellent infrastructure and cosmopolitan population.

Chris Sutton, who works for a prominent property developer in Argentina said that the country’s real estate market was back on track: “Argentina’s future economic outlook is promising. Independent of the two undertakings we have in Puerto Madero, we are convinced this is an excellent time to invest in real estate in this country. Relative values of quality properties will see a significant appreciation in the next few years.

Puerto Madero represents the best real estate opportunities in Buenos Aires. Downtown Buenos Aires is witnessing significant changes with the old financial district getting completely transformed. A lot of old buildings in the old financial district are being gutted and restored.

Foreign investors are already very ambitious about Argentina’s prospects. Bryan Woo, who is the director of acquisitions at a major New York based firm which has been investing in Argentina says, “I enjoy Buenos Aires and think there are a lot of opportunities there. When Argentina figures itself out and there is more investor confidence…you will see real estate go through a prolonged series of appreciation.

“It’s still a difficult time to invest significant capital in construction in Argentina right now as a foreign firm. Importing commodities and building materials is challenging because of capital controls and you have to incorporate that into your time horizon and delivery.

The fact is that real estate prices in Buenos Aires are among the lowest in South America. An average house in a middle class neighbourhood in Buenos Aires sells for $181 per sq. foot. A house in Rio de Janeiro, in comparison, averages $335 per square foot. But the crisis is over and things are looking up. As Bryan Woo emphasizes, “We anticipate something to change for the better.

 If you want to sell luxury villas in Argentina, be sure to hire the top UK estate agents who will put you in touch with such sophisticated, high net worth overseas investors looking to buy properties in the country.

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