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Palermo, Belgrano and Villa Urquiza: the unexpected phenomenon suffered by the 3 neighborhoods that are among the most expensive in the city - La Nación Propiedades
Source:
www.lanacion.com.ar
July 30, 2024
These are the three areas that are in the top 10 with the largest land supply.
Palermo, Belgrano and Villa Urquiza: the 3 neighborhoods that are among those with the most expensive properties in the city Shutterstock
Palermo, Belgrano and Villa Urquiza do not follow the rule . Contrary to what is established when there is an excess of supply, which generates a decrease in the value of a property, in these three neighborhoods of the city of Buenos Aires the opposite occurs completely . These are the areas in which, despite having an oversupply of land, they defend the highest values in the city of Buenos Aires.
This is due to the fact that there are higher expectations in those locations that are considered by developers as “good for investment” , but also to the lack of interest in developing in more peripheral areas despite the fact that they are at much lower prices.
To put it in context, the stock of buildable land in the city only had a positive variation of 2.5 percent in the first four months of 2024 - with 6,227 units - compared to the last of 2023 - 6,050 plots. "This percentage is the result of the slowdown in the level of construction activity and the uncertainty regarding possible modifications that may occur in the urban planning code, which has been in force since 2018." This is the conclusion drawn from the land market report by Adrián Mercado Real Estate , which analyzed the data for April 2024 and revealed the phenomenon: neighborhoods with an oversupply of land are also those that have the most expensive prices.
In turn, the report establishes that in April of this year there was a stabilization in the average value of the incidence of land in the city of Buenos Aires , at US$450/m2. In this way, the consecutive decline that land had had in the last five years was stopped , reaching values similar to those of 2012. The Market report reveals that the stabilization is the result of expectations of an increase in the value of the finished square meter in the medium term, due to the increase in the cost of construction in dollars (16% so far this year) and the return of mortgage credit in the country, mainly in areas where available options are scarce .
Number of plots available for building in CABA by neighborhood
What is happening in Palermo, Belgrano and Villa Urquiza? These three neighborhoods are among the top 10 areas with the largest supply of land for construction in the city, but they are also among those with the highest market prices . In concrete numbers:
Palermo, Belgrano and Villa Urquiza are the three neighborhoods of the city that have the greatest supply of land for constructionHernan Zenteno - The Nation
www.buysellba.com
Source:
Palermo, Belgrano y Villa Urquiza: el fenómeno impensado que sufren los 3 barrios que están entre los más caros de la ciudad
Son las tres zonas que se encuentran dentro del top 10 con mayor oferta de terrenos
www.lanacion.com.ar
July 30, 2024
These are the three areas that are in the top 10 with the largest land supply.
Palermo, Belgrano and Villa Urquiza: the 3 neighborhoods that are among those with the most expensive properties in the city Shutterstock
Palermo, Belgrano and Villa Urquiza do not follow the rule . Contrary to what is established when there is an excess of supply, which generates a decrease in the value of a property, in these three neighborhoods of the city of Buenos Aires the opposite occurs completely . These are the areas in which, despite having an oversupply of land, they defend the highest values in the city of Buenos Aires.
This is due to the fact that there are higher expectations in those locations that are considered by developers as “good for investment” , but also to the lack of interest in developing in more peripheral areas despite the fact that they are at much lower prices.
To put it in context, the stock of buildable land in the city only had a positive variation of 2.5 percent in the first four months of 2024 - with 6,227 units - compared to the last of 2023 - 6,050 plots. "This percentage is the result of the slowdown in the level of construction activity and the uncertainty regarding possible modifications that may occur in the urban planning code, which has been in force since 2018." This is the conclusion drawn from the land market report by Adrián Mercado Real Estate , which analyzed the data for April 2024 and revealed the phenomenon: neighborhoods with an oversupply of land are also those that have the most expensive prices.
In turn, the report establishes that in April of this year there was a stabilization in the average value of the incidence of land in the city of Buenos Aires , at US$450/m2. In this way, the consecutive decline that land had had in the last five years was stopped , reaching values similar to those of 2012. The Market report reveals that the stabilization is the result of expectations of an increase in the value of the finished square meter in the medium term, due to the increase in the cost of construction in dollars (16% so far this year) and the return of mortgage credit in the country, mainly in areas where available options are scarce .
Number of plots available for building in CABA by neighborhood
What is happening in Palermo, Belgrano and Villa Urquiza? These three neighborhoods are among the top 10 areas with the largest supply of land for construction in the city, but they are also among those with the highest market prices . In concrete numbers:
- In Palermo, 379 building plots were counted, it is the neighborhood with the largest supply on the market, while the value per square meter there is around US$650, the fourth most expensive
- In Villa Urquiza there are 335 plots available, a number that places it in third place in quantity of supply, with an average price of US$580, the eighth highest.
- While Belgrano is located with an average price per square meter of US$700, and has 275 plots in stock, the sixth neighborhood with the highest supply.
Palermo, Belgrano and Villa Urquiza are the three neighborhoods of the city that have the greatest supply of land for constructionHernan Zenteno - The Nation
The 5 neighborhoods with the most expensive land in CABA
- Puerto Madero : US$1286/m2 with 4 building lots
- Recoleta : US$820/m2 with 70 plots available
- Belgrano : US$700/m2 and 275 plots in stock
- Palermo : US$650/m2 and 379 building plots
- Colegiales : US$600/m2 with 91 plots available
The 5 neighborhoods with the cheapest land in CABA
- Villa Riachuelo : US$125/m2 and 4 plots available for building
- Villa Soldati : US$125/m2 and 11 plots in stock
- La Boca : US$140/m2 and 48 building plots
- Villa Lugano : US$145/m2 and 46 plots available
- Floresta : US$145/m2 without land available for building
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