Can a foreigner buy a house in Argentina? All details about the Argentinian real estate market  — expert 

Is real estate expensive in Argentina? How much do apartments in Buenos Aires cost? Which neighborhoods in the capital are considered the most prestigious? How much does it cost to rent an apartment in Buenos Aires for the long term? RickyJames Gourge, International Investment and Sales Director at Desarrollos Diagonal, tells us about it. 

“After the pandemic, demand for private homes in Argentina has started to rise.”

— How is the Argentine real estate market different from others? What are its peculiarities?

— At the moment, real estate prices in Argentina are very low. However, this should soon change, as individuals are taking full advantage of the opportunity and their purchasing power.  

In general, the market is beginning to stabilize little by little; prices have stopped falling, and there is a slight upward trend.

— Which properties in Argentina, in general, are in constant demand?

— The current demand for apartments suitable for temporary rentals is for two to three-bedroom units. Studios and one-bedroom apartments were in demand up until the pandemic, as investors at that time were looking for 2-year rental options. 

As for prices, in Buenos Aires today, you can buy a 1-bedroom apartment for between $2500 and $2800 per square meter. These prices have remained virtually unchanged over the past year. 

After the pandemic, the demand for private homes in Argentina began to grow: many people emigrated from the big cities to move to gated neighborhoods and villages located in the suburbs of Buenos Aires. 

In most of these cases, a plot of land is bought out, with construction costs remaining the same as in the city. According to a real estate report, today the cost of construction in the country is about $1,000 per square meter.

RickyJames Gourge, International Investment and Sales Director at Desarrollos Diagonal

“Buenos Aires and its Northern Zone are the most sought-after places to buy real estate.”

— How is Buenos Aires remarkable from a real estate point of view? 

— The real estate market in Buenos Aires is special and different from the rest of the country. It is dynamically developing and is a tourist center, so there is always something to do here. It is also among the 10 largest cities in the country. Almost every resident of Argentina aspires to live in the capital, where the most affluent citizens live. Finally, it is a vibrant and beautiful city.  

Buenos Aires and the Northern Zone of this city are the most sought-after places to buy real estate. The concept of “better” or “worse” depends on each client. Some prefer quieter neighborhoods, and for some, the main priorities are transportation and access to amenities. 

— Where are the cheapest apartments for sale in Buenos Aires? And conversely, the most expensive? What factors influence this?

— There are three large geographical groups that we can classify: the City of Buenos Aires, Greater Buenos Aires, and interior neighborhoods. 

According to data published in Real Estate Report, the average cost of one-bedroom apartments per square meter in a new building is $1800 in CABA (Ciudad Autónoma de Buenos Aires, that is, the Autonomous City of Buenos Aires) and $1100 inside the city. In Greater Buenos Aires, a one-bedroom apartment on the secondary market costs an average of $1600 per square meter. 

Apartments on the “secondary market” have a lower value, and bargaining is more appropriate there, depending on each case. According to a real estate report in Buenos Aires, the average asking price for a used one-bedroom apartment last September was US$65,000. 

In the northern parts of the city, a four-bedroom apartment costs an average of US$138,750. The Puerto Madero neighborhood, one of the areas with the highest value of $5,300 per square meter for a one-bedroom apartment, can be taken as the maximum value; in the Palermo neighborhood, the cost per square meter will reach $2800-$3000; in Belgrano, $2800-$3200.  

“The mortgage market in Argentina is practically non-existent”

— Which foreigners buy real estate in Argentina? In general, what are the conditions for foreigners to buy real estate in this country?  Can they take out a mortgage?

— Foreigners have no restrictions on the purchase of real estate in Argentina. The most active buyers in our experience are Central American citizens and Russians. Also, Buenos Aires is always a desirable place for any South American.

As far as the local population is concerned, for those who earn Argentine salaries, prices are too high, and it is almost impossible to buy real estate.

The mortgage market in Argentina is almost non-existent due to the extraordinary inflation rates. Nevertheless, some banks and individuals occasionally provide such loans. 

— How much can you earn from real estate in Argentina, and in what ways can you do it? 

— The most you can earn when buying a property under construction, where the profit on the subsequent sale is 25-30%.

Today, buying real estate for rent traditionally is not profitable: among the reasons for this are the weakness of the local currency and the current legislation, which requires the lease of real estate for a minimum of 3 years. In addition, rental values are updated every six months using an index that takes the average of expenses and the average of salaries.

When it comes to temporary rentals which are for three (3) months at a time and usually for tourists, profitability can depend on how each owner runs their business. As someone with superhost status on Airbnb, I can tell you that a lot depends on the season. Spring and summer are the highest seasons in Buenos Aires. Now that there is a new government, this may change for rent is going to be accepted in dollars. So the possibilities are growing concerning real estate rentals.

In the most sought-after neighborhoods of Buenos Aires, temporary rentals can range from $100 to $200 per night for a 3-bedroom apartment.

— What makes the Argentine real estate market attractive to investors? 

— The real estate market in Argentina is attractive because it is a beautiful, developing, and modern country. Also, local prices are convenient for those who have a foreign currency (the cost of real estate is indicated in dollars). I would like to note that obtaining citizenship or a residence permit does not depend on the purchase of real estate: these procedures are in no way interrelated.