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“Buying is good business”: the Argentine city experiencing an unthinkable real estate boom - La Nacion Popiedades
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www.lanacion.com.ar
July 16, 2024
The destination brings together luxury projects, districts, neighborhoods and initiatives for first homes, a snapshot of an ultra-dynamic market that promises to continue growing.
By Victoria Aranda
If there is one thing that Argentina has no disagreement about, it is the natural beauty that the country has to offer. Mendoza is one of the most beautiful provinces and although this is not the reason that explains the good real estate moment it is experiencing, it does contextualize it. Thus, within the framework of the magnificent Andes mountain range, its valleys and its rivers, numerous projects of all kinds are emerging in harmony with this environment.
For now, Distrito Central and Vesta are being built. This is being done by the construction company Criba together with the local developer Creative PMO. Central is a mixed-use project near Parque Central, which, signed by Urgell Penedo Urgell, had an initial investment of US$20 million . It stands out, the company highlights, for being an intelligent housing proposal, having an alliance with nature and an efficient integration with the city.
In the case of Vesta, it is a 15,000 m² residential building with a US$25 million investment located in the fifth Section, opposite San Martín Park and steps away from the commercial area of Emilio Civit and Arístide streets. Designed by the Bórmida & Yanzón studio, the project consists of two parallel towers that are linked by a central low body, surrounded by wide perimeter spaces.
Vesta, Criba's super-premium project, in Mendoza
“ It is super premium,” says Manuel Valdés, commercial director of Criba. “Although it is not our core business –we build for third parties and will continue to do so--, we chose to develop in Mendoza . The reasons? In addition to finding a space for this type of development, we must not forget that this is a province with a surplus ,” he adds.
Regarding prices, Valdés explains that the square meter averages US$6,000 with tickets starting at US$250,000 – which can be paid in advance or in installments – and stresses that the project was designed to establish links with the nature that surrounds it. Its common areas, located on different levels, have views of the park, the Andes foothills and the city. “We proposed: live the city, feel the mountain ,” adds the executive, who explains that the units vary between 96 and 280 square meters. The plan is to deliver it in 30 months.
As for Distrito Central, it consists of six complexes: three buildings designed with a ground floor and five levels each; and three towers, with a ground floor and 16 levels. In total, there will be 456 housing units , including studios, and apartments with one, two and three bedrooms, with an execution planned in three stages.
Central District will have 456 housing units
The ground floors of the buildings will form a commercial base for gastronomic and local shops, with large open exterior areas. The project, they emphasize, is integrated with the Central Park, generating a fusion between the public and private that is valued with the activity of the Cultural Building and enhances the environment with a friendly construction.
“In this case, the project is also designed for investors, specifically for tourist rentals, Airbnb ,” Valdes explains, commenting that, in addition to Argentine buyers, there are also Chileans and Americans. “ In Mendoza, there is not only the wine product, but also the province is linked to countless sporting activities ,” he shares, contextualizing the demand.
“It is not just about selling the business units as such, but also about adding amenities and seeking that added value that comes from alliances with sports clubs, artists or renowned architects,” the CEO explains, indicating that his product portfolio includes private neighborhoods, houses and apartments, and revealing an upcoming major project in the Pedemonte –a pre-cordillera area- of Mendoza.
“ We will give value to an old winery, refurbishing it and adapting it to the new needs of society,” he says. “ The good moment of the market is also due to the fact that the values are very competitive ,” he adds in relation to the business. In this same sense, he says, in the area there is a trend that is growing a lot, which is investment in hotel rooms, a model aimed 100% at financial profitability.
Another of its projects is Penta, located exactly in Olavarría and Terrada, Perdriel; 10 minutes from Luján de Cuyo, 30 minutes from Potrerillos Lake and 18 minutes from the city center. The project includes 235 lots of an average of 800 square meters that are sold for US$60,000, apartments and duplexes, a shopping center, a service area and the headquarters of the Liceo Rugby Club .
Penta includes 235 lots of an average of 800 square meters that are sold for US$60,000, apartments and duplexes, a shopping center, a service area and the headquarters of the Liceo Rugby Club
When asked about the province, he adds: “It is a very large geographical area, divided into zones with marked particularities,” describes Fuks. “There, clients seek to invest in their area of influence due to proximity and knowledge , so we offer a variety of products of different types that adapt to each of these environments, from urban centers to large tracts of land on the outskirts of the city,” he continues.
The company, Fuks reveals, has presented specific products for the province. “ In Mendoza we have launched duplexes, houses in micro-neighborhoods with exclusive surroundings and we are planning a project with a street mall for the residents in Carrodilla , the first of these dimensions for the Natania brand.”
Natania 61, a project with three towers and more than 400 units that required an investment of more than $19.6 billion.
Does the provincial economy have any influence on business development? “The market is expectant and it is clear that uncertainty impacts all levels of investment,” answers Fuks. “In our case, we believe that clients see that their savings to access their first home or to secure a small investment continue to increase in value, ” he adds.
Regarding the dynamism of the province's real estate market, Jorgelina Berrio, a Re/Max broker in Mendoza, states that, during the first three months of 2024, sales closings increased by 13.7% compared to the same period in 2023 , "which shows a growth in demand ."
New properties range from US$900/m² to US$1,500/m² for houses in gated communities, while new apartments in high-end buildings are around US$2,000/m². Standard apartments in private or semi-private complexes are priced between approximately US$650/m² and US$1,000/m², the specialist explains.
Regarding used properties, the value in gated communities is on average US$1,200/m² and US$650/m² for properties that do not belong to gated communities. As for locations, 55% of the houses sold were in Godoy Cruz and Guaymallén (both bordering the city of Mendoza), 73.7% of the apartments were sold between the city, Guaymallén and Godoy Cruz, and 50% of the lot sales were in Luján de Cuyo, of which 60% were in gated communities.
Another fact that shows the dynamism of this market is that the negotiation margin, which was 7%, has been falling or practically zero in some cases.
Looking to the future, he predicts that “as the value of the dollar remains stable and even though construction materials prices increase, new properties will tend to increase in value by approximately 10% .”
For example, La Morada Lodge is a US$20 million investment project located in the Uco Valley area: it occupies 400 hectares -273 of them cultivated- at the foot of the Andes Mountains just 60 kilometers from Santiago de Chile and 4,500 square meters from the pass that Darwin and San Martin used to take cattle to Chile.
Today the project occupies some 28 hectares, surrounded by vineyards, and has a hotel with 32 units, its own kitchen and jacuzzi. It is a multipurpose project that combines an investment proposal with the possibility of converting it into a permanent residence option.
The development has 40 lots of 2,500 square meters and also different types of buildings : the tiny houses in the pit are sold for US$155,000 while the finished ones amount to US$175,000 . In the case of the pod suites , which are buildings with two bedrooms, with 69 covered square meters and 28 semi-covered square meters, on 800 square meter lots, with access to all the amenities of the complex and its own pool, the values vary between US$210,000 and US$260,000 . And the houses , between US$350,000 and US$390,000, details Daniela Aiello, owner of Finca Sur Servicios Inmobiliarios, which together with Toribio Achával markets the project.
The masterplan is completed with 44 luxurious houses on lots of 1,250 square meters , with a covered area of 139 m² and 57 m² semi-covered and three bedrooms, a private pool and a large terrace with views of the mountain range.
When talking about the business, Steve Rosberg, the man behind it, says that the profitability of the temporary rental of these properties ranges between 8% and 12% depending on the level of occupancy. “The central turnkey administration is from the lodge,” explains the businessman who admits that he was captivated by the energy of the area.
La Morada has tiny houses that sell for $155,000
Another project underway is Casa de Uco -with a winery and resort- located in Los Chacayes, in the Uco Valley. Within the same property, on a 25-hectare plot of land, surrounded by vineyards, with views of the mountains, and meters from the boutique hotel , a sector of lots of 10,000 m² on average was presented , which are sold from US$200,000, for private residences. The construction of the houses, with a minimum surface area of 200 m², starts at US$550,000, including the lot . The design and management of the private works is in charge of the Tonconogy Arquitectos studio, responsible for the architecture of Casa de Uco.
Casa de Uco is located 10 minutes away from the 10 most prestigious wineries in Argentina ,” says Juan Tonconogy, Managing Partner of the firm, highlighting that the project is located at the foot of the Andes mountain range and surrounded by vineyards ; in a place where you can also go horseback riding, trekking, and a host of other sporting activities.
Casa de Uco offers turnkey, sustainable, minimalist-style homes that, with land included, start at US$550,000.
“The product we offer is not aimed at permanent housing but rather at vacation or temporary housing,” he explains. “The public that has shown the most interest so far is Argentine, Brazilian and American. In general, they are people who are passionate about the world of wine, but we also have buyers who fall in love with the surroundings, the landscape, and the peace and tranquility that the place offers,” Tonconogy continues.
According to his description, the interested parties are generally people over 50 years old, with grown children, who are looking for a second or third home . “As for the origin - he adds - we were surprised by the interest that was aroused by people from Buenos Aires, which was greater than we expected. Obviously, there is a city public that is saturated and that, after visiting this place, never wants to leave again.”
Another of the emblematic projects in the area is The Vines, built on a 500-hectare property . It is a winery hotel with a subdivision of vineyards.
The Vines is an iconic project in Mendoza, built on a 500-hectare property
The near-full occupancy of a hotel where a night costs more than US$1000 motivated Michael Evans to expand the project with residences . The first ten houses were sold in just four days. And while the second residential phase is being planned, The Vines brand is preparing to launch in Portugal, Spain and the United States.
www.buysellba.com
Source:
“Comprar es buen negocio”: la ciudad argentina que vive un boom inmobiliario impensado
El destino suma proyectos de lujo, distritos, barrios e iniciativas para primera vivienda, radiografía de un mercado ultra dinámico que promete seguir creciendo.
www.lanacion.com.ar
July 16, 2024
The destination brings together luxury projects, districts, neighborhoods and initiatives for first homes, a snapshot of an ultra-dynamic market that promises to continue growing.
By Victoria Aranda
If there is one thing that Argentina has no disagreement about, it is the natural beauty that the country has to offer. Mendoza is one of the most beautiful provinces and although this is not the reason that explains the good real estate moment it is experiencing, it does contextualize it. Thus, within the framework of the magnificent Andes mountain range, its valleys and its rivers, numerous projects of all kinds are emerging in harmony with this environment.
For now, Distrito Central and Vesta are being built. This is being done by the construction company Criba together with the local developer Creative PMO. Central is a mixed-use project near Parque Central, which, signed by Urgell Penedo Urgell, had an initial investment of US$20 million . It stands out, the company highlights, for being an intelligent housing proposal, having an alliance with nature and an efficient integration with the city.
In the case of Vesta, it is a 15,000 m² residential building with a US$25 million investment located in the fifth Section, opposite San Martín Park and steps away from the commercial area of Emilio Civit and Arístide streets. Designed by the Bórmida & Yanzón studio, the project consists of two parallel towers that are linked by a central low body, surrounded by wide perimeter spaces.
Vesta, Criba's super-premium project, in Mendoza
“ It is super premium,” says Manuel Valdés, commercial director of Criba. “Although it is not our core business –we build for third parties and will continue to do so--, we chose to develop in Mendoza . The reasons? In addition to finding a space for this type of development, we must not forget that this is a province with a surplus ,” he adds.
Regarding prices, Valdés explains that the square meter averages US$6,000 with tickets starting at US$250,000 – which can be paid in advance or in installments – and stresses that the project was designed to establish links with the nature that surrounds it. Its common areas, located on different levels, have views of the park, the Andes foothills and the city. “We proposed: live the city, feel the mountain ,” adds the executive, who explains that the units vary between 96 and 280 square meters. The plan is to deliver it in 30 months.
As for Distrito Central, it consists of six complexes: three buildings designed with a ground floor and five levels each; and three towers, with a ground floor and 16 levels. In total, there will be 456 housing units , including studios, and apartments with one, two and three bedrooms, with an execution planned in three stages.
Central District will have 456 housing units
The ground floors of the buildings will form a commercial base for gastronomic and local shops, with large open exterior areas. The project, they emphasize, is integrated with the Central Park, generating a fusion between the public and private that is valued with the activity of the Cultural Building and enhances the environment with a friendly construction.
“In this case, the project is also designed for investors, specifically for tourist rentals, Airbnb ,” Valdes explains, commenting that, in addition to Argentine buyers, there are also Chileans and Americans. “ In Mendoza, there is not only the wine product, but also the province is linked to countless sporting activities ,” he shares, contextualizing the demand.
District concept
Nicolás Armentano, CEO of the eponymous group, explains that they work on the district concept. “They integrate more than one service that complement each other, enhancing an area. Among our projects we include private neighborhoods, offices and apartment complexes, located in Greater Mendoza, close to the main road accesses ,” he explains.“It is not just about selling the business units as such, but also about adding amenities and seeking that added value that comes from alliances with sports clubs, artists or renowned architects,” the CEO explains, indicating that his product portfolio includes private neighborhoods, houses and apartments, and revealing an upcoming major project in the Pedemonte –a pre-cordillera area- of Mendoza.
“ We will give value to an old winery, refurbishing it and adapting it to the new needs of society,” he says. “ The good moment of the market is also due to the fact that the values are very competitive ,” he adds in relation to the business. In this same sense, he says, in the area there is a trend that is growing a lot, which is investment in hotel rooms, a model aimed 100% at financial profitability.
Another of its projects is Penta, located exactly in Olavarría and Terrada, Perdriel; 10 minutes from Luján de Cuyo, 30 minutes from Potrerillos Lake and 18 minutes from the city center. The project includes 235 lots of an average of 800 square meters that are sold for US$60,000, apartments and duplexes, a shopping center, a service area and the headquarters of the Liceo Rugby Club .
Penta includes 235 lots of an average of 800 square meters that are sold for US$60,000, apartments and duplexes, a shopping center, a service area and the headquarters of the Liceo Rugby Club
Supply and demand
Last February, Grupo Ecipsa delivered its Natania 61, a project with three towers and more than 400 units that represented an investment of more than $19.6 billion. According to Walter Fuks, CEO of the company, “Mendoza is one of our most competitive locations in the country and has a potential buyer with good purchasing power.”When asked about the province, he adds: “It is a very large geographical area, divided into zones with marked particularities,” describes Fuks. “There, clients seek to invest in their area of influence due to proximity and knowledge , so we offer a variety of products of different types that adapt to each of these environments, from urban centers to large tracts of land on the outskirts of the city,” he continues.
The company, Fuks reveals, has presented specific products for the province. “ In Mendoza we have launched duplexes, houses in micro-neighborhoods with exclusive surroundings and we are planning a project with a street mall for the residents in Carrodilla , the first of these dimensions for the Natania brand.”
Natania 61, a project with three towers and more than 400 units that required an investment of more than $19.6 billion.
Does the provincial economy have any influence on business development? “The market is expectant and it is clear that uncertainty impacts all levels of investment,” answers Fuks. “In our case, we believe that clients see that their savings to access their first home or to secure a small investment continue to increase in value, ” he adds.
Regarding the dynamism of the province's real estate market, Jorgelina Berrio, a Re/Max broker in Mendoza, states that, during the first three months of 2024, sales closings increased by 13.7% compared to the same period in 2023 , "which shows a growth in demand ."
New properties range from US$900/m² to US$1,500/m² for houses in gated communities, while new apartments in high-end buildings are around US$2,000/m². Standard apartments in private or semi-private complexes are priced between approximately US$650/m² and US$1,000/m², the specialist explains.
Regarding used properties, the value in gated communities is on average US$1,200/m² and US$650/m² for properties that do not belong to gated communities. As for locations, 55% of the houses sold were in Godoy Cruz and Guaymallén (both bordering the city of Mendoza), 73.7% of the apartments were sold between the city, Guaymallén and Godoy Cruz, and 50% of the lot sales were in Luján de Cuyo, of which 60% were in gated communities.
Another fact that shows the dynamism of this market is that the negotiation margin, which was 7%, has been falling or practically zero in some cases.
Looking to the future, he predicts that “as the value of the dollar remains stable and even though construction materials prices increase, new properties will tend to increase in value by approximately 10% .”
Between drinks and horseback riding
Although, as already mentioned, the province has many attractions, trying to dissociate the province from its most characteristic product would not only be a mistake but also impossible. The pairing of bricks and wine seems to work very well, as there are several real estate projects associated to a greater or lesser extent with grapes and vineyards.For example, La Morada Lodge is a US$20 million investment project located in the Uco Valley area: it occupies 400 hectares -273 of them cultivated- at the foot of the Andes Mountains just 60 kilometers from Santiago de Chile and 4,500 square meters from the pass that Darwin and San Martin used to take cattle to Chile.
Today the project occupies some 28 hectares, surrounded by vineyards, and has a hotel with 32 units, its own kitchen and jacuzzi. It is a multipurpose project that combines an investment proposal with the possibility of converting it into a permanent residence option.
The development has 40 lots of 2,500 square meters and also different types of buildings : the tiny houses in the pit are sold for US$155,000 while the finished ones amount to US$175,000 . In the case of the pod suites , which are buildings with two bedrooms, with 69 covered square meters and 28 semi-covered square meters, on 800 square meter lots, with access to all the amenities of the complex and its own pool, the values vary between US$210,000 and US$260,000 . And the houses , between US$350,000 and US$390,000, details Daniela Aiello, owner of Finca Sur Servicios Inmobiliarios, which together with Toribio Achával markets the project.
The masterplan is completed with 44 luxurious houses on lots of 1,250 square meters , with a covered area of 139 m² and 57 m² semi-covered and three bedrooms, a private pool and a large terrace with views of the mountain range.
When talking about the business, Steve Rosberg, the man behind it, says that the profitability of the temporary rental of these properties ranges between 8% and 12% depending on the level of occupancy. “The central turnkey administration is from the lodge,” explains the businessman who admits that he was captivated by the energy of the area.
La Morada has tiny houses that sell for $155,000
Another project underway is Casa de Uco -with a winery and resort- located in Los Chacayes, in the Uco Valley. Within the same property, on a 25-hectare plot of land, surrounded by vineyards, with views of the mountains, and meters from the boutique hotel , a sector of lots of 10,000 m² on average was presented , which are sold from US$200,000, for private residences. The construction of the houses, with a minimum surface area of 200 m², starts at US$550,000, including the lot . The design and management of the private works is in charge of the Tonconogy Arquitectos studio, responsible for the architecture of Casa de Uco.
Casa de Uco is located 10 minutes away from the 10 most prestigious wineries in Argentina ,” says Juan Tonconogy, Managing Partner of the firm, highlighting that the project is located at the foot of the Andes mountain range and surrounded by vineyards ; in a place where you can also go horseback riding, trekking, and a host of other sporting activities.
Casa de Uco offers turnkey, sustainable, minimalist-style homes that, with land included, start at US$550,000.
“The product we offer is not aimed at permanent housing but rather at vacation or temporary housing,” he explains. “The public that has shown the most interest so far is Argentine, Brazilian and American. In general, they are people who are passionate about the world of wine, but we also have buyers who fall in love with the surroundings, the landscape, and the peace and tranquility that the place offers,” Tonconogy continues.
According to his description, the interested parties are generally people over 50 years old, with grown children, who are looking for a second or third home . “As for the origin - he adds - we were surprised by the interest that was aroused by people from Buenos Aires, which was greater than we expected. Obviously, there is a city public that is saturated and that, after visiting this place, never wants to leave again.”
Another of the emblematic projects in the area is The Vines, built on a 500-hectare property . It is a winery hotel with a subdivision of vineyards.
The Vines is an iconic project in Mendoza, built on a 500-hectare property
The near-full occupancy of a hotel where a night costs more than US$1000 motivated Michael Evans to expand the project with residences . The first ten houses were sold in just four days. And while the second residential phase is being planned, The Vines brand is preparing to launch in Portugal, Spain and the United States.
www.buysellba.com
