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Land in CABA: In which neighborhoods are the most expensive and which is the “star” area due to its great potential - Infobae
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Terrenos en CABA: en qué barrios están los más caros y cuál es la zona “estrella” por su gran potencial
El más cotizado tiene un valor de USD 700 por metro cuadrado. En el sector sostienen que se generaron desarrollos de menor escala en los últimos tiempos y preocupa el crecimiento de los costos para la construcción
www.infobae.com
January 10, 2024
The most sought after has a value of USD 700 per square meter. In the sector, they maintain that smaller-scale developments have been generated in recent times and the growth in construction costs is worrying.
By José Luis Cieri
Currently there are nearly 7,000 plots of land for sale in different neighborhoods of the city of Buenos Aires
A private report identified the neighborhoods in the city of Buenos Aires with the most expensive land for housing construction. Recoleta tops the list with a price of USD 700 per square meter, being the area that most affects the final value of the property that is built in the future.
This classic neighborhood stands out for maintaining higher values than the rest of the Northern Corridor due to the limited offer of lots in the area, with only around 50 lots for sale, while layouts such as Palermo have an offer that exceeds 300 lots for sale.
According to the consulting firm FOT Libre Terrenos, the most expensive areas are detailed below (whose incidence value per square meter is expressed in dollars):
Recoleta: USD 700.
Belgrano: USD 650.
Palermo: USD 600.
Colegiales: 550.
Middle zones below:
Coghlan: USD 500.
Nuñez: USD 500.
Villa Urquiza: USD 450.
Caballito: 450.
Source: FOT Libre Terrenos. Here the map of incidents and the strong colors mark where the areas with the most expensive lots in CABA are.
“The incidence map follows the logic of a heat map, where intense colors indicate the neighborhoods with the highest values. It is noted that the northern corridor of CABA (Retiro, Recoleta, Palermo and Belgrano) exhibits the highest incidence prices, in contrast to the southern neighborhoods, which register the cheapest," Gonzalo Bustos , director of the consultant who did the survey.
Starting in mid-2018, the real estate market experienced a steady decline in buying and selling transactions (which only recovered in 2023), which impacted property values.
Bustos added: “As a result, most developers opted for smaller-scale projects. In 2019, the average surface area per project, according to statistics from the Buenos Aires Government, was 3,200 m2, while in 2023 it was reduced to only 2,100 m2.”
In certain sectors of the city, the demand for land is high, especially for medium-scale projects, preferably those that can be started and completed in a government period (less than 4 years).
Alan Schachter, architect and consultant specialized in urban code and land market, noted that “the market, initially focused on projects for end users, once again showed interest for investors. However, he is alerted to the increase in construction costs in recent months, while sales prices did not follow the same trend. This discrepancy could result in a lack of growth in land values, which could discourage developers, generating reduced supply and keeping prices at low levels.”
Revelation
All the neighborhoods surrounding Palermo and Belgrano are those with the greatest demand due to spillover effect (especially, Saavedra, Núñez, Villa Crespo and Colegiales).
Near the Parque Los Andes neighborhood, which is distributed between Leiva, Rodney, Concepción Arenal and Guzmán streets in Chacarita, one of the Buenos Aires routes with the greatest real estate future.
But the surprise is Chacarita with an incidence value of USD 400 per m2. “It is the neighborhood with the greatest potential due to the large existing transportation network (subway, train and numerous bus lines), its proximity to Palermo, it has a green space such as Los Andes Park and a greater gastronomic and cultural offer in the Newbery circuit,” Bustos clarified.
The offer in the area, specifically between Jorge Newbery, Córdoba and Corrientes avenues, experienced a revitalization that includes vermouth shops, craft breweries and restaurants with signature cuisine.
Operations
In highly demanded neighborhoods, such as Belgrano, Palermo and Núñez, real estate operations are carried out for less than USD 600 per m2, and even in some cases, below USD 500 per m2, depending on the payment conditions.“Despite this decrease in the value of the land, the price of acquiring a property in the well stage would be higher today than if it had started in 2023. This is because, although the incidence of the land decreased by USD 80 per m2, construction costs increased by USD 100 per m2. Additionally, the relationship between the construction cost and the total value of the project changed, with an increase in the percentage that the construction cost represents in the development as a whole,” Schachter said.
Until the change of the Urban Planning Code (CUR) in 2018, the belief that land decreased less in value than apartments, and were even considered more as a refuge of value, was valid.
Schachter said that reality changed: “In 2017, there were 1,500 plots of land for sale, and at the end of 2023, the supply had increased, reaching nearly 7,000 plots available.”
In Recoleta there are the highest prices for the purchase of land to build homes
The abundance of land for sale is attributed to the impact of the CUR, which expanded the construction capacity of several lots. The CUR made it possible to incorporate smaller plots of land, which are more numerous in the city and less developed.
“Before, land was worth up to half that of apartments, but today it has increased to 1.5 times more. Some houses or PH complexes are now worth more as existing properties than as simple land,” Schachter concluded.
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