Newsletter – May 2012
CRISIS AND OPPORTUNITIES by Andrea Rodriguez for Anuario Inmobiliario 2012
Latin America – LATAM by its common acronym- is becoming a land of opportunities and challenges for real estate industry, in face of the European crisis or instability in traditionally safe countries.
REAL ESTATE MARKET IN ARGENTINA
by Cesar Crespi, principal of CLGyA
Real estate construction and agricultural exports are the two main forces that have supported the high growth rate of the Argentine economy for the past ten years.
Argentina is the world’s second largest producer of soybeans and is a large exporter to China, India and other South Asian countries. In fact a lot of the money coming from agricultural exports goes mainly to buying real estate projects in the main cities of Argentina such as Buenos Aires, Cordoba and Rosario.
The healthy condition of the local real estate market is based on some of the following factors:
- High demand for rental housing: young families, single individuals, local and foreign students.
- Even though property values have increased 20% in the past three years, prices are still lower than Argentina’s neighbors Brazil and Uruguay. Building and selling is a good business, but keeping
property for appreciation over time could be a good strategy as well. This is an interesting point to keep in mind considering the world-class prestige of a city like Buenos Aires.
- No investment alternatives. Due to the international financial crisis, there aren’t many choices for equity investment for the medium-large equity investor.
- Real estate projects built for sale in good Argentine locations can
make an IRR of 17% per year on average three-year long projects.
AVENIDA BUILDING
Ramos Mejía, Buenos Aires
Residential development in Buenos Aires western suburbs, designed and developed by CLGyA. This building has studios, one and two bedroom apartments; and commercial spaces in its ground floor. The complex has parking spaces, and amenities such as swimming pool, solarium and a very nice green area
