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Interest in mega-premium properties is back: The keys to the sector in CABA and what homes the richest are looking for - Infobae
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Volvió el interés por la propiedades mega-premium: las claves del sector en CABA y qué viviendas buscan los más ricos
Tras cinco años de caída de valores de propiedades lujosas se frenó el descenso. Las actuales cotizaciones en ubicaciones selectas tientan tanto a compradores locales como extranjeros
www.infobae.com
March 18, 2024
After five years of falling luxury property values, the decline stopped. Current listings in select locations tempt both local and foreign buyers
By José Luis Cieri
A three-room apartment in the Núñez area. Select demand prioritizes used or brand new units
Since the beginning of 2024, a notable increase in activity in the premium real estate market has been observed . This segment covers properties that are distinguished by their exceptional characteristics, high quality in materials and finishes, as well as their location in exclusive areas, in this case the city of Buenos Aires.
The interest in buying in Puerto Madero, Belgrano, Núñez, Recoleta, Palermo, Colegiales, among other neighborhoods, is attributed to a renewal in expectations, motivated by the change in the Government. The actors in this market, given their purchasing power, better weather the current turbulence.
“Buyers in the premium segment are able to look beyond the current economic difficulties, investing with an eye on the long term. Confidence is boosted by policies that, although still in their initial stages, are beginning to outline a more favorable context for investment in high-end properties,” Martín Pinus , of Martín Pinus Real Estate, explained to Infobae.
Today, the interest of buyers is in apartments, more than in houses or PHs, both used and brand new. “This is due to the increase in construction costs. Investing in a well project today implies an increase of up to 50%. The same occurs with the possibility of making spare parts to the units that are acquired. Consequently, the square meter of finished properties is seen as an opportunity,” Pinus clarified.
The real estate market experienced a notable rise in the last quarter of 2023, consolidating the year as the most successful in the last half decade, with an especially fruitful December . This increase was manifested through a 20% increase in sales transactions, despite the usual calm that characterizes the months of January and February.
Puerto Madero is the most sought-after neighborhood in Buenos Aires and is always on the radar of those who can buy homes in this area just steps from the river.
Francisco Bosch , of Miranda Bosch Real Estate & Art, stated that interest in properties worth more than USD 1,000,000 “recorded an unusual growth, which indicates dynamism in the market and renewed enthusiasm on the part of buyers.”
There is an inclination towards spacious properties of more than 150 square meters. Investing in properties with these characteristics, in addition to improving their status, promises to maintain their value and demand over time.
What is prioritized
Regarding the premium segment, location emerges as the most important criterion when making a purchase decision. The comfort, security and construction quality of the properties are highly valued factors.“Added to this are additional amenities such as swimming pools, terraces, large social areas for events, and coworking spaces, which mainly adorn modern residential towers. These elements are crucial for a sector of the market that is looking not only for a home, but for a particular lifestyle,” commented Bosch.
Apartments with 4 rooms or more are being marketed, especially in upscale buildings and older properties that can be renovated to make better use of the space and quality of the building. Units with large terraces or PHs that prioritize the outdoors are also offered.
Gabriela Cosovschi , from the real estate agency Inmuebles Comerciales, said that in the search for a premium home, buyers are divided into various subgroups according to their needs and preferences. “Young people are looking for leisure and amenities sectors, especially those who work from home and value having shared places such as coworking within the building. On the other hand, young buyers with children prefer buildings with outdoor play areas and kids clubs , as well as social areas and a swimming pool,” she said.
Sophistication in environments such as kitchens and bathrooms is also valued by those who have high purchasing power to spend on homes.
Families with older children are looking to upgrade to a more modern unit. They prioritize more updated and functional spaces that adapt to the needs of a family with older children, looking for amenities such as service quarters and recreation areas to share.
“Two-room apartments are sold mainly to those who later rent them out,” Cosovschi added.
The premium segment is characterized, in general, by solidly built properties, unique designs, details in the finishes and quality of the materials. “But also, due to the location in exclusive areas of the city, open views, privacy and varied and sophisticated amenities, such as a swimming pool, solarium, spa, microcinema, wine cellars and yoga or Pilates rooms,” explained Pinus.
Post-pandemic, open space acquired a preponderance that it did not have before. Added to this is the inclination towards open concept interior design, where the kitchen takes center stage and is linked to large reception areas, for social gatherings and sharing time with the family.
What happens with prices
The price of 2-room apartments in premium buildings in CABA vary between USD 250,000 and USD 350,000; those with 3 rooms, between USD 450,000 and USD 600,000; those with 4 rooms go up to USD 800,000; and those with 4 rooms plus an outbuilding and two garages vary between USD 900,000 and USD 1,300,000. Those with 5 rooms and above exceed one million dollars.
Open concept prevails in luxurious and spacious units
The premium real estate segment has characteristic behaviors, such as a lower supply and sellers who are not usually pressed for time. “With the drop in general prices that occurred in the market and the low flow of operations, sellers were a little more flexible than usual when it came to receiving offers,” said Pinus.
However, since mid-2023, prices have not only stopped falling, but have also registered a slight increase. Correspondingly, the owners of premium units appear strengthened and willing to defend the value of their property after five consecutive years of price declines (it is estimated that in CABA they fell by 45%).
When luxury homes are designed on two or three levels, they usually have their own pool.
Bosch specified: “The uncertainty decreased. Argentine stocks and bonds are trending upward, indicating an optimistic outlook in the medium and long term. Although the country is going through a complex moment in the short term, the markets tend to anticipate, so a slow recovery in real estate prices is expected.”
High-net-worth buyers know what they want and are willing to pay for it, although they always try to negotiate a discount.
“In this market it is common for sellers to agree to go down 10% at the time of the offer, but they are not willing to give up beyond that percentage. This contrasts with other sectors where prices are more flexible and negotiated more,” Cosovschi added.
Appropriate expenses
In some cases, the constant increase in expenses determines the purchase of a premium property. In properties with more than 3 rooms, more than $350,000 is paid on average, and it is a cost that is beginning to attract the attention of buyers.
Views and terraces are also vital to decide the purchase for those looking in the premium real estate market.
There is renewed interest on the part of foreign buyers, who inquire about premium properties, given the competitiveness of property values in Argentina. With the same footage and similar location, it is unthinkable to buy in London, New York, Paris or Madrid for an amount of money equivalent to what they cost in Buenos Aires.
“The sophisticated and demanding client looking for exclusive properties values the location, quality and service offered. Furthermore, it prioritizes tranquility and the absence of problems related to the consortium and the administration of the property,” Bosch concluded.
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