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Buenos Aires left the Top 5 cities with the most expensive homes in Latin America
November 13, 2023
This emerges from a survey carried out periodically by the Universidad di Tella and Zonaprop. The ranking by price per square meter in dollars and which are the most expensive and cheapest locations in real estate. The surprising case of Montevideo and strong presence of Mexican cities .
Buenos Aires is no longer among the most expensive cities in the region, now ranking seventh among the cities with the highest housing prices in Latin America
The decrease in home sales prices, which recently ended last June in the city of Buenos Aires, led to the departure of the Argentine capital from the Top 5 cities with the highest values in Latin America. This information is supported by a private analysis that revealed Montevideo as the most sought-after city on the continent, with a value of USD 3,166 per square meter.
The results come from the Latin American Real Estate Survey (RIAL), carried out by the Finance Research Center (CIF) of the Business School of the Torcuato Di Tella University in collaboration with the Zonaprop platform. After Montevideo, the metropolises with the most expensive square meter in the region are Mexico City (USD 2,948), Monterrey (USD 2,621) and Guadalajara (USD 2,535).
Two editions of this study have now placed Uruguay as the leader in the ranking through Montevideo, once again consolidating itself as the most expensive city in Latin America. This pattern reaffirms the prominent position of the Uruguayan capital in terms of real estate costs in the region.
Prices in Buenos Aires fell 0.2% in dollars during the year and it is ranked as the seventh most expensive city in Latin America (last March it was in fourth place). But from 2018 to mid-2023 they fell between 35% and 45% according to different sectoral surveys.
On the contrary, the cities with the most accessible m2 in the region are Quito (USD 1,202), Bogotá (USD 1,254), Córdoba (USD 1,368) and Rosario (USD 1,431).
The work reports the price per square meter of apartments in neighborhoods of 14 cities in 9 Latin American countries that are comparable to what in CABA are Barrio Norte, Belgrano, Caballito and Recoleta. The calculation is made from the price requested in sales notices on websites.
“Compared to March 2019, when the highest price per square meter was recorded in Buenos Aires (USD 3,125), since the beginning of the study, the price decrease was 24.5%,” specified the authors of the survey.
The economic situation, the fluctuations of the blue dollar and various exchange rates, the devaluations of the local currency, as well as the absence of mortgage credit for the purchase of homes, had a significant impact on the decrease in sales values in all areas. Buenos Aires neighborhoods.
Mariana Lucángeli , a Real Estate expert, acknowledged to Infobae that “after almost five years of stagnation in the real estate sector, recent months have shown signs of revitalization. This rebound is attributed to the return to urban areas after the pandemic, investment opportunities in premium areas at historically low prices and technological modernization in the real estate sector.”
The report derived from the RIAL indicated that Montevideo has the highest price per square meter for housing in the region. This evaluation included the coveted coastal neighborhoods of Buceo, Parque Rodó, Pocitos and Punta Carretas.
View of the so-called "old" sector in Montevideo. And you can see the port of the capital of Uruguay (Photo: Getty Images)
“The neighborhoods that drive the value of the m2 upwards are the neighborhoods on the coast (close to the beach) of Montevideo (Punta Carretas, Pocitos, Malvín, Carrasco). They have in common that they are small neighborhoods, some with height limitations. The properties are small, few, and the projects have only a few units. Profitability is achieved through an increase in the sales price,” Gonzalo Martínez Vargas , from Moebius Real Estate Consultant, told Infobae.
Specialists argued that to understand the values in Montevideo the following items must be followed:
A- Construction on larger plots of land significantly influences the costs of the project and, therefore, the sales price.
B- The increase in property prices is attributed to an exchange rate mismatch, since the majority of inputs are in Uruguayan pesos, despite the stability of the dollar.
C- The cost per square meter is directly linked to the size of the property, with buildings being smaller in Uruguay compared to the international average.
Martínez Vargas explained: “In Montevideo, according to its own reports, there are around 200 buildings under construction, totaling about 8,000 properties and 500,000 square meters. Construction activity is concentrated mainly on the coast and in the Central Neighborhoods (Centro, Cordón, Tres Cruces, Parque Batlle, La Blanqueada, Prado), extending towards the north of the city. This area benefits from the Promoted Housing law, which provides tax incentives to both the builder and the investor.”
Some developers have several projects to launch in the coming months. Only in Promovida Housing, in Montevideo, in the first 6 months of this year, 49 projects were approved, for a total of 1,933 homes. They represent 125,000 m2. During 2022, 3,633 homes were built.
In Mexico, three cities follow Montevideo at the highest level of the ranking: Mexico City, Monterrey and Guadalajara.
Source: Real Estate Survey of Latin America (RIAL), carried out by the Finance Research Center (CIF) of the Business School of the Torcuato Di Tella University in collaboration with the Zonaprop platform.
Both Mexico City, Monterrey and Guadalajara experienced a year-on-year increase in their housing prices of 16.5%, 12.5%, and 10.2%, respectively.
Experts point out that, in the post-pandemic stage, there is a notable interest in construction, with an increase in demand for both the purchase and rental of new homes, especially by tourists from the United States. This trend is responsible for the increase in values in several Mexican cities.
Mexico has several cities, including its capital (photo), among the most expensive on the continent for buying homes.
Measured in nominal dollars, the city in which there was the greatest percentage increase in price is Bogotá (19.4%). For its part, the largest falls occurred in Santiago de Chile (-5.5%), Rosario (-1.6%) and Buenos Aires (-0.2%) in the last semester.
Valued in real local currency, the cities with the largest increases are Córdoba (12%) and Mexico City (8.1%).
The following graph shows the percentage variation in prices between March and September of this year. Three units of account are used: nominal dollars, real dollars, and real local currency.
“On average, prices rose 5.2% in nominal dollars, 3.2% in real dollars and 2.6% in real local currency. That is, the amount necessary to acquire a m2 increased in dollar bills, in inflation-adjusted dollars in the United States, and in local currency adjusted for inflation,” the RIAL reported.
The real local currency price is adjusted for each country's retail inflation, while the real dollar price uses US retail inflation.
https://buysellba.com/news-/-media/f/buenos-aires-left-the-top-5-cities-with-the-most-expensive-homes
www.buysellba.com
November 13, 2023
This emerges from a survey carried out periodically by the Universidad di Tella and Zonaprop. The ranking by price per square meter in dollars and which are the most expensive and cheapest locations in real estate. The surprising case of Montevideo and strong presence of Mexican cities .
Buenos Aires is no longer among the most expensive cities in the region, now ranking seventh among the cities with the highest housing prices in Latin America
The decrease in home sales prices, which recently ended last June in the city of Buenos Aires, led to the departure of the Argentine capital from the Top 5 cities with the highest values in Latin America. This information is supported by a private analysis that revealed Montevideo as the most sought-after city on the continent, with a value of USD 3,166 per square meter.
The results come from the Latin American Real Estate Survey (RIAL), carried out by the Finance Research Center (CIF) of the Business School of the Torcuato Di Tella University in collaboration with the Zonaprop platform. After Montevideo, the metropolises with the most expensive square meter in the region are Mexico City (USD 2,948), Monterrey (USD 2,621) and Guadalajara (USD 2,535).
Two editions of this study have now placed Uruguay as the leader in the ranking through Montevideo, once again consolidating itself as the most expensive city in Latin America. This pattern reaffirms the prominent position of the Uruguayan capital in terms of real estate costs in the region.
Prices in Buenos Aires fell 0.2% in dollars during the year and it is ranked as the seventh most expensive city in Latin America (last March it was in fourth place). But from 2018 to mid-2023 they fell between 35% and 45% according to different sectoral surveys.
On the contrary, the cities with the most accessible m2 in the region are Quito (USD 1,202), Bogotá (USD 1,254), Córdoba (USD 1,368) and Rosario (USD 1,431).
The work reports the price per square meter of apartments in neighborhoods of 14 cities in 9 Latin American countries that are comparable to what in CABA are Barrio Norte, Belgrano, Caballito and Recoleta. The calculation is made from the price requested in sales notices on websites.
“Compared to March 2019, when the highest price per square meter was recorded in Buenos Aires (USD 3,125), since the beginning of the study, the price decrease was 24.5%,” specified the authors of the survey.
The economic situation, the fluctuations of the blue dollar and various exchange rates, the devaluations of the local currency, as well as the absence of mortgage credit for the purchase of homes, had a significant impact on the decrease in sales values in all areas. Buenos Aires neighborhoods.
Mariana Lucángeli , a Real Estate expert, acknowledged to Infobae that “after almost five years of stagnation in the real estate sector, recent months have shown signs of revitalization. This rebound is attributed to the return to urban areas after the pandemic, investment opportunities in premium areas at historically low prices and technological modernization in the real estate sector.”
The Montevideo case
The report derived from the RIAL indicated that Montevideo has the highest price per square meter for housing in the region. This evaluation included the coveted coastal neighborhoods of Buceo, Parque Rodó, Pocitos and Punta Carretas.
View of the so-called "old" sector in Montevideo. And you can see the port of the capital of Uruguay (Photo: Getty Images)
“The neighborhoods that drive the value of the m2 upwards are the neighborhoods on the coast (close to the beach) of Montevideo (Punta Carretas, Pocitos, Malvín, Carrasco). They have in common that they are small neighborhoods, some with height limitations. The properties are small, few, and the projects have only a few units. Profitability is achieved through an increase in the sales price,” Gonzalo Martínez Vargas , from Moebius Real Estate Consultant, told Infobae.
Specialists argued that to understand the values in Montevideo the following items must be followed:
A- Construction on larger plots of land significantly influences the costs of the project and, therefore, the sales price.
B- The increase in property prices is attributed to an exchange rate mismatch, since the majority of inputs are in Uruguayan pesos, despite the stability of the dollar.
C- The cost per square meter is directly linked to the size of the property, with buildings being smaller in Uruguay compared to the international average.
Martínez Vargas explained: “In Montevideo, according to its own reports, there are around 200 buildings under construction, totaling about 8,000 properties and 500,000 square meters. Construction activity is concentrated mainly on the coast and in the Central Neighborhoods (Centro, Cordón, Tres Cruces, Parque Batlle, La Blanqueada, Prado), extending towards the north of the city. This area benefits from the Promoted Housing law, which provides tax incentives to both the builder and the investor.”
Some developers have several projects to launch in the coming months. Only in Promovida Housing, in Montevideo, in the first 6 months of this year, 49 projects were approved, for a total of 1,933 homes. They represent 125,000 m2. During 2022, 3,633 homes were built.
Aztecas maintains a good price
In Mexico, three cities follow Montevideo at the highest level of the ranking: Mexico City, Monterrey and Guadalajara.
Source: Real Estate Survey of Latin America (RIAL), carried out by the Finance Research Center (CIF) of the Business School of the Torcuato Di Tella University in collaboration with the Zonaprop platform.
Both Mexico City, Monterrey and Guadalajara experienced a year-on-year increase in their housing prices of 16.5%, 12.5%, and 10.2%, respectively.
Experts point out that, in the post-pandemic stage, there is a notable interest in construction, with an increase in demand for both the purchase and rental of new homes, especially by tourists from the United States. This trend is responsible for the increase in values in several Mexican cities.
Mexico has several cities, including its capital (photo), among the most expensive on the continent for buying homes.
Other cities
Measured in nominal dollars, the city in which there was the greatest percentage increase in price is Bogotá (19.4%). For its part, the largest falls occurred in Santiago de Chile (-5.5%), Rosario (-1.6%) and Buenos Aires (-0.2%) in the last semester.
Valued in real local currency, the cities with the largest increases are Córdoba (12%) and Mexico City (8.1%).
The following graph shows the percentage variation in prices between March and September of this year. Three units of account are used: nominal dollars, real dollars, and real local currency.
“On average, prices rose 5.2% in nominal dollars, 3.2% in real dollars and 2.6% in real local currency. That is, the amount necessary to acquire a m2 increased in dollar bills, in inflation-adjusted dollars in the United States, and in local currency adjusted for inflation,” the RIAL reported.
The real local currency price is adjusted for each country's retail inflation, while the real dollar price uses US retail inflation.
https://buysellba.com/news-/-media/f/buenos-aires-left-the-top-5-cities-with-the-most-expensive-homes
www.buysellba.com
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