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Neither Palermo nor Belgrano: The two Buenos Aires neighborhoods where there are opportunities to buy brand new apartments “cheaply”
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Ni Palermo, ni Belgrano: los dos barrios porteños en los que hay oportunidades para comprar departamentos a estrenar “baratos”
Son dos los barrios porteños que tienen propiedades a estrenar que se venden más baratas que las de pozo porque tienen los precios del antiguo valor del costo de construcción
www.lanacion.com.ar
July 22, 2024
There are two neighborhoods in Buenos Aires that have brand new properties that are sold cheaper than those in the poor condition because they have the prices of the old value of the construction cost.
By Maria Josefina Lanzi
The Doho in Buenos Aires, an area that is gaining followers and good real estate investment opportunities
In a market where there are still opportunities to buy properties, given that prices remain low, there are also different phenomena that can continue to encourage buyers. And in this specific case, the spotlight is on the difference in prices that exists between brand new apartments and those that are under construction, that is, in the works, numbers that open a window of business for those interested in taking refuge in brick and mortar.
One of these opportunities is in the Buenos Aires neighborhood of Coghlan, where buying a brand new unit costs almost 13% less than a substandard one . A little further south of the city, there is the iconic neighborhood of San Telmo, where these differences rise to 25.78%.
In general, brand new apartments tend to offer higher sales prices than those in a well and used ones , but there are certain areas of CABA where singular cases are concentrated. In addition to the aforementioned neighborhoods, this phenomenon also occurs in Recoleta, with a 6.63% difference, or Núñez, but with a smaller difference (2.75%). Also on the list are Chacarita (3.03%), Villa Devoto (1.56%), Caballito (3.16%), Villa Ortúzar (3.57%), Almagro (1.75%), Villa del Parque (5.13%), Monserrat (4.32%), Villa Pueyrredón (1.04%), Barracas (0.36%), San Nicolás (11.95%), Constitución (10.96%), Balvanera (6.17%), Nueva Pompeya (10.68%) and Lugano (1.89%).
There are 18 neighborhoods where the phenomenon occurs in which buying a brand new unit is cheaper than one in a pit.
“I believe that this phenomenon is due to the fact that the cost of construction two or three years ago, when the works that are currently being delivered began, was less than half of today's prices ,” explains Gabriela Bovalina Ladux, director of the Development and Land division of LJ Ramos. “ This makes it possible to sell at lower prices and still generate profits, accelerating the pace of sales and causing rapid liquidity for the development companies.”
“There is indeed a big gap between what is beginning to be built and what has recently been completed,” says Damián Tabakman, president of the Chamber of Urban Developers (CEDU) and shares with Bovalina that many of those who have recently finished merchandise bought it at the prices of the previous government, when it was very cheap, so they are currently selling at a price that generates a difference with respect to what they put in.
On the other hand, those who are starting a project are calculating the new construction costs, which in the first three months of the year increased by more than 80% in dollars. “ But this must be understood as temporary, completely temporary, since things will be balanced again ; the recently completed apartments will be sold in the next few months and the prices of the wells will be defensible again,” says the specialist.
A green neighborhood that is growing
Coghlan is a quiet neighborhood of low-rise houses, classified as one of the smallest in the city, with 1.3 km², which borders an important commercial corridor that was generated a few years ago, when new developments were launched on Donado and Holmberg streets . It is a neighborhood that grew around the train station that bears the same name, and has tree-lined streets and a residential character that prevails over time.“ There are currently between 12 and 16 new building projects in Coghlan, which is a large number for the neighborhood,” explains Patricio Gomez, head of Century 21, and points out that it is a “trending area that has been increasing in value.” The average price per square meter of new construction in the area is US$2,590 and for new construction US$2,923, according to data from Zonaprop.
The hub known as DoHo (Donado - Holmberg), at the height of the Villa Urquiza and Villa Ortúzar neighborhoods, neighboring Coghlan
The neighborhood has developed thanks to the impetus of the Donado-Holmberg corridor
Regarding the impact of land, Manuel Mel, commercial manager of Mel Inmobiliaria, explains that the square meter (of land) is in the order of US$500/550, although it varies according to the characteristics of each piece of land.
“This is an area that began to have more demand after the pandemic and this phenomenon is still in force. It is a neighborhood sought after by people who want to live in the federal capital and, at the same time, be in a quiet area ,” explains Mel and assures that it has a lot of greenery and developments that prioritize spaces with these characteristics, such as large terraces, something highly demanded by clients: “These buildings are the new ph.”
He adds that the urban planning code, modified a few years ago, was also responsible for promoting the area, pushing for more works, "although today they are discussing the possibility of modifying it, to lower the heights and the construction capacity of the neighborhood," explains the broker .
The neighborhood is characterized by being a very quiet residential area.
A classic Buenos Aires neighborhood
Iconic bars, tango playing and dancing in the middle of cobblestone streets, old mansions and varied gastronomic offerings are some of the elements that identify San Telmo and invite every intrigued tourist and curious Argentine to stroll and get to know the essence of Buenos Aires.Alejandro Moretti, from Nuevo Siglo Propiedades, shares with other brokers the cause of the phenomenon mentioned above, of brand new properties being cheaper than those in the development stage, explaining that today units are being sold that were developed three or four years ago, when construction costs were completely different from those of today. He also points out that in San Telmo: “ Building was done above the real demand of the neighborhood, which led to there being an available supply without absorption, so many developers prefer to go out and sell and get rid of the units.” According to data from Zonaprop, the average price per square meter of brand new properties in the area is US$2,894 and those in the development stage are US$3,899.
San Telmo is a neighborhood widely visited by foreign and Argentine tourists.
Moretti adds that this is an area where the most in-demand are small units, with one or two rooms. “Buyers are thinking of renting it temporarily or permanently ,” says the broker . The proximity to the well-known Plaza Dorrego is what is sought above all, although he explains that there are not many new developments in this area, but rather old apartments or ph.
“It is a neighborhood where a violent change is taking place,” says Hernán Pisarenko, Commercial Director of HA Desarrollos, and explains that the area experienced a transformation with Paseo del Bajo, where projects are being created that have raised the area and “integrated San Telmo with Puerto Madero, the most expensive neighborhood in the city.”
Indeed, a few blocks from the San Telmo border, a hub of high-end developments was built, including Quartier del Bajo, by Argencons, Huergo 475, the project developed by Costantini who is negotiating with a bank to sell it on credit, and Grand Atlántida, the project promoted by HA Desarrollos, which is being built in the old house of Editorial Atlántida, located on Azopardo and México.
Something characteristic of the San Telmo neighborhood are the cobbled streets
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