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Palermo: The area of the Buenos Aires neighborhood with the air of New York's Soho where sales prices continue to rise - La Nacion Propiedades
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La zona porteña con aires del Soho de Nueva York en donde los precios de las propiedades no paran de subir
El barrio que está vivo las 24 horas del día, en constante expansión y con una marcada impronta cultural, tiene por segundo año consecutivo mejoras en los valores de la oferta en sus nuevos desarrollos
www.lanacion.com.ar
August 17, 2024
The neighborhood that is alive 24 hours a day, constantly expanding and with a marked cultural imprint, has for the second consecutive year improvements in the values of the offer in its new developments
By Candle Contreras
The Palermo microzone that is emerging with real estate projects similar to the top sectors of the city
The area is one of the favorites of tourists. Palermo represents the largest neighborhood in the city of Buenos Aires, with its 723 blocks , and is informally divided into sub-neighborhoods , among which stands out a micro-zone that emerges with real estate projects similar to the top sectors of the city : Palermo Hollywood .
Not only is it surrounded by restaurants, bars and green spaces, it is also the Buenos Aires hub for audiovisual production companies , television channels and technology companies that chose the area to land due to a series of tax benefits that the Buenos Aires government implemented years ago.
Noted for its modern design and contemporary architecture , Palermo Hollywood gained prominence and consolidation after the elimination of the bridge between Córdoba and Juan B. Justo avenues, which finished integrating it with Palermo Soho, making it one of the places chosen by developers to build modern and top projects.
“The neighborhood is young par excellence and is a point of tourist interest for the trendy public,” says Gustavo Glazman, partner of Infinity Line, which develops projects in the area, especially on Niceto Vega Avenue. “Premium projects are increasing because there is demand, in addition to the fact that the area is repositioning itself. It may not be Puerto Madero, but it is gradually becoming similar to this segment due to the type of projects that are being built ,” explains German Gómez Picasso, co-founder of Reporte Inmobiliario.
A key fact that gives the green light to new developments is that, after three consecutive years of a decline in the published sales value of brand new units , 2024 is the second year with an improvement in prices . In numbers, the value per square meter is around US$3,689 on average. Last year it averaged US$3,438, which represents an increase of 7.3% measured in dollars . When analyzing the variation in prices depending on the property, the Real Estate Report report establishes that it is between US$3,201 and US$4,649 per square meter.
The same report details the payment methods that the apartments are offered with advances in dollars of between 40% and 50% of the total value , with balances in installments that last the remaining construction period and that can be paid in dollar bills or in pesos, always updated by the index of the Argentine Chamber of Construction.
The removal of the Juan B. Justo bridge allowed the union of the two Palermos
Another fact reflected in the report is that the number of square meters under construction has remained stable for three years, exceeding the range of 110,000 m² , although still below the area under construction between 2007 and 2009 when it exceeded 200,000 m². The figures show the change in the scope of the projects, which in recent years are smaller in scale than those carried out years ago. “Today, sales are firm and construction costs will lead to higher prices, mainly due to the boom in mortgage loans ,” said Glazman.
Palermo Hollywood's new premium projects
At the height of Niceto Vega at 5500, one of the avenues that extends between Colegiales and Palermo Soho and that adds important developments to the neighborhood, Novelty will begin to be built in the coming months , a development marketed by Infinity Line . The project, which will have a frontage of 34 meters and a projected investment of US$25 million, is a building with two independent cores: a residential one with 60 one, two and three-room apartments ; and another for offices, ranging from 50 to 300 square meters. The value of the units in the pit starts at US$3000/m² , and 40% of the total has already been sold during the friends and family . “Due to the location, we felt obliged to have it destined for housing for a young public, but it will also be suitable for professionals and can be used as an Airbnb,” explains Glazman.Niceto Vega stands out for being a low-traffic avenue with quick access, mainly from the junction of both Palermos. The big difference between the Hollywood area and Palermo Soho is that the latter is characterized by being an area where clothing takes center stage, it is more bohemian. While in Hollywood the main thing is gastronomy.
Niceto Vega is one of the avenues that adds important developments to the neighborhood
Meanwhile, at Costa Rica 5400, construction is underway on “ Green Built ,” which will be completed at the end of 2025. This is a double-fronted building with a contemporary design, with one, two, and three-room units with the possibility of unifications at this stage of construction. In addition, the apartments located on the highest floors have terraced balconies. In this case, two-room units are available, ranging from US$2,400 to US$3,100/m² .
“The big difference with the Palermo Soho developments is that in the second one you cannot build high up, they are much smaller in every sense,” says Glazman.
Palermo Hollywood is characterized by being an area with a boom in premium projects
Another alternative, closer to Santa Fe Avenue, in the premium sector, is “Mit Hollywood” at Charcas 5100. It is a 10-story residential building with 52 two-, three-, and four-room units with outbuildings and terraced balconies. “In terms of size, the two-room apartments measure between 48 m² and 67 m², the three-room apartments between 98 m² and 110 m², while the four-room apartments measure between 157 m² and 351 m²; and their prices start at US$3,500/m²,” says María Gabriela Besuzzo, manager of works and developments at Interwin , the company that sells it .
On another of the most sought-after streets in the neighborhood, at Soler 5600 , the construction of “Plan H” was completed, with an investment of US$8 million. There are 64 two- and three-room units divided into 10 floors . “In this case, prices start at US$280,000 for two-room apartments on the ground floor of 105 m² with a private patio; US$245,000 for two-room apartments of 73 m² with a balcony; and US$356,000 for three-room apartments of 120 m², with a private terrace,” Besuzzo explains.
Palermo Hollywood is different from Palermo Soho because it has a strong imprint on gastronomy
The used market in the area
The used apartments on offer in the area deserve a different analysis. According to Reporte Inmobiliario, the average general price of this type of units is 21.4% below the average value per square meter that apartments in new developments offer.In numbers, two -room apartments - the type with the highest supply - have listed prices of over US$3,120/m². One-room apartments are priced at around US$3,100/m²; three - room apartments are priced at US$2,612/m² - the units with the lowest square footage - while four-room apartments have an average price of US$2,789/m² .
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