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Real estate in AMBA: why the apartment market has recovered but house sales continue to decline - Infobae
Source:
December 31, 2024
A private analysis detailed the causes of this trend and the areas where values rose the most. In the rental market, supply grew by 182% and marked a record since the repeal of the Rental Law after the DNU in the region that includes CABA and GBA.
By Jose Luis Cieri
Apartment purchases are still active in the AMBA and values maintain an upward trend (Illustrative Image Infobae)
A private report shows that, in December 2024, the apartment market in the Buenos Aires Metropolitan Area (AMBA) maintained an upward trend, observable in CABA since August 2023 and in Greater Buenos Aires (GBA) South since May 2024.
The behavior of sales prices varied according to the type of property and the region. In the city of Buenos Aires, apartments led the growth with a year-on-year increase of 10.4%, while in the GBA the increases were more moderate: 2.5% in GBA North and 5.6% in GBA South.
On the other hand, GBA Oeste showed a decrease of 0.1%, very slight, according to the analysis carried out jointly by the Mercado Libre platform and the University of San Andrés (UDESA).
In contrast, housing prices (averaging a 4.6% year-on-year drop in AMBA) registered a decline in CABA and GBA Norte, while in GBA Sur and Oeste the situation remained stable since November 2024.
House prices experienced widespread declines across all regions. In CABA, prices fell by 2.8%, while in GBA North, GBA South and GBA West the declines were 4.4%, 2% and 8.4%, respectively.
According to Mariana Lucángeli , an architect and real estate specialist, although many people choose to look for houses or PHs to avoid the expenses, these properties tend to be more expensive than apartments, especially if they have a garage, "which can increase their appraisal by up to 20%; however, the drop in values is due to the fact that operations in CABA are mostly concentrated in apartments."
Lucángeli explained that apartments offer a higher return on rentals, both traditional and temporary, “which positions them as the priority option in a market focused on maximizing profits. This phenomenon increased the demand for apartments and contributed to the rise in their prices.”
The analysis by neighborhoods and localities highlighted Villa Devoto , in CABA, as the area with the highest year-on-year increase of 17.9% in the sale price of apartments. In the GBA, Quilmes presented the largest year-on-year drop in houses, with a decrease of 12.3%, while La Plata led the increases in apartments, with a rise of 15.5% in Buenos Aires province.
Last December, this demand grew by 40.7% compared to the same month last year.
This increase is attributed to increased activity in the real estate sector and the reactivation of mortgage loans, which encouraged potential buyers.
Ariel José Córdoba , from Córdoba Properties, observed a change in the composition of demand: “Investors predominate over end users in these months. Couples without children are looking for three-room apartments to use the second bedroom for working from home.”
The repeal of the Rental Law encouraged owners to re-enter units into the market. According to Córdoba, “demand exceeds supply, but 2025 could be more dynamic with new developments.”
Although the lack of available units pushed prices up in the San Miguel district, these increases are slight, without the abrupt rises of other years.
There, the purchase and sale prices vary according to the type of property. A one-bedroom apartment with a garage costs USD 95,000 and a two-bedroom apartment costs USD 130,000. Houses in open-plan neighborhoods start at USD 150,000, while in gated communities they go up to USD 180,000, with expenses of USD 380,000 per month.
Source: Mercado Libre and Universidad de San Andrés. Here is the behavior of the values per m2 of houses in the AMBA
Property values remain at historic levels, which represents an opportunity. However, Córdoba warns that the Whitewash and mortgage loans could increase demand and prices. “The exchange rate is key; it is necessary to maintain measures that provide predictability to reinforce confidence,” he added.
Fernando Belvedere , from EFEBE Properties, pointed out that “in areas such as Avellaneda and Lanús, one-bedroom apartments range between $250,000 and $300,000, while two-bedroom apartments cost more than $550,000 a month. Two-bedroom houses, especially those with a patio or garage, have higher prices and are in high demand.”
As for buying and selling, prices depend on location and condition. In Avellaneda and Lanús, a one-bedroom apartment is priced between USD 50,000 and USD 90,000, while a two-bedroom apartment ranges between USD 80,000 and USD 140,000. Two-bedroom houses in established neighborhoods range between USD 110,000 and USD 180,000, depending on whether they have a park or garage.
Belvedere added that “in Avellaneda and Lanús, prices in dollars remain stable, but the loss of savings capacity makes it difficult for buyers. Limited access to mortgage credit also affects the market, although premium properties with amenities maintain a constant demand.”
In this segment, prices also showed notable increases, although these were below inflation, which reached 166% year-on-year according to the report. Prices per square meter for apartment rentals rose by 39.3% in CABA, 43.3% in GBA Norte, 92.4% in GBA Sur and 101.3% in GBA Oeste.
In the case of houses, the increases were 32% in GBA North, 74.7% in GBA South and 88.2% in GBA West.
Among the highlighted neighborhoods and localities, San Telmo , in CABA, registered the largest inter-monthly increase in apartments, with 3.8% compared to last November.
In the GBA, La Matanza led the increases in houses, with an increase of 13.5%, while Moreno stood out in apartments, with a 7.4% increase month-on-month.
www.buysellba.com
Source:
December 31, 2024
A private analysis detailed the causes of this trend and the areas where values rose the most. In the rental market, supply grew by 182% and marked a record since the repeal of the Rental Law after the DNU in the region that includes CABA and GBA.
By Jose Luis Cieri
Apartment purchases are still active in the AMBA and values maintain an upward trend (Illustrative Image Infobae)
A private report shows that, in December 2024, the apartment market in the Buenos Aires Metropolitan Area (AMBA) maintained an upward trend, observable in CABA since August 2023 and in Greater Buenos Aires (GBA) South since May 2024.
The behavior of sales prices varied according to the type of property and the region. In the city of Buenos Aires, apartments led the growth with a year-on-year increase of 10.4%, while in the GBA the increases were more moderate: 2.5% in GBA North and 5.6% in GBA South.
On the other hand, GBA Oeste showed a decrease of 0.1%, very slight, according to the analysis carried out jointly by the Mercado Libre platform and the University of San Andrés (UDESA).
In contrast, housing prices (averaging a 4.6% year-on-year drop in AMBA) registered a decline in CABA and GBA Norte, while in GBA Sur and Oeste the situation remained stable since November 2024.
House prices experienced widespread declines across all regions. In CABA, prices fell by 2.8%, while in GBA North, GBA South and GBA West the declines were 4.4%, 2% and 8.4%, respectively.
According to Mariana Lucángeli , an architect and real estate specialist, although many people choose to look for houses or PHs to avoid the expenses, these properties tend to be more expensive than apartments, especially if they have a garage, "which can increase their appraisal by up to 20%; however, the drop in values is due to the fact that operations in CABA are mostly concentrated in apartments."
Lucángeli explained that apartments offer a higher return on rentals, both traditional and temporary, “which positions them as the priority option in a market focused on maximizing profits. This phenomenon increased the demand for apartments and contributed to the rise in their prices.”
Scenery
According to variations in sales prices, the real estate market in AMBA shows complex and differentiated dynamics depending on the type of property and the region.
The analysis by neighborhoods and localities highlighted Villa Devoto , in CABA, as the area with the highest year-on-year increase of 17.9% in the sale price of apartments. In the GBA, Quilmes presented the largest year-on-year drop in houses, with a decrease of 12.3%, while La Plata led the increases in apartments, with a rise of 15.5% in Buenos Aires province.
Demand on the rise
The report also highlighted an increase in demand for apartments for sale, as measured by contacts registered in the publications.Last December, this demand grew by 40.7% compared to the same month last year.
This increase is attributed to increased activity in the real estate sector and the reactivation of mortgage loans, which encouraged potential buyers.
Between the west and the north
The end of 2024 left a positive balance for the real estate sector, marking a contrast with the recent crisis years. In a more stable context, the repeal of the Rental Law , access to mortgage loans, divisible mortgages and money laundering generated a favorable and promising environment for 2025.Ariel José Córdoba , from Córdoba Properties, observed a change in the composition of demand: “Investors predominate over end users in these months. Couples without children are looking for three-room apartments to use the second bedroom for working from home.”
The repeal of the Rental Law encouraged owners to re-enter units into the market. According to Córdoba, “demand exceeds supply, but 2025 could be more dynamic with new developments.”
Although the lack of available units pushed prices up in the San Miguel district, these increases are slight, without the abrupt rises of other years.
There, the purchase and sale prices vary according to the type of property. A one-bedroom apartment with a garage costs USD 95,000 and a two-bedroom apartment costs USD 130,000. Houses in open-plan neighborhoods start at USD 150,000, while in gated communities they go up to USD 180,000, with expenses of USD 380,000 per month.
Source: Mercado Libre and Universidad de San Andrés. Here is the behavior of the values per m2 of houses in the AMBA
Property values remain at historic levels, which represents an opportunity. However, Córdoba warns that the Whitewash and mortgage loans could increase demand and prices. “The exchange rate is key; it is necessary to maintain measures that provide predictability to reinforce confidence,” he added.
Southern zone
The high demand for rentals in the GBA reduces the occupancy times for one - and two-bedroom units. Tenants include young people looking to become independent, families who prioritize proximity to schools, and professionals who choose strategic areas. Many also prefer properties with low fixed costs, such as those without expenses.Fernando Belvedere , from EFEBE Properties, pointed out that “in areas such as Avellaneda and Lanús, one-bedroom apartments range between $250,000 and $300,000, while two-bedroom apartments cost more than $550,000 a month. Two-bedroom houses, especially those with a patio or garage, have higher prices and are in high demand.”
As for buying and selling, prices depend on location and condition. In Avellaneda and Lanús, a one-bedroom apartment is priced between USD 50,000 and USD 90,000, while a two-bedroom apartment ranges between USD 80,000 and USD 140,000. Two-bedroom houses in established neighborhoods range between USD 110,000 and USD 180,000, depending on whether they have a park or garage.
Belvedere added that “in Avellaneda and Lanús, prices in dollars remain stable, but the loss of savings capacity makes it difficult for buyers. Limited access to mortgage credit also affects the market, although premium properties with amenities maintain a constant demand.”
Expanding offer
The supply of apartments for rent in the AMBA grew by 182% in December 2024 after the implementation of the DNU. The increase was more significant in CABA than in the GBA.In this segment, prices also showed notable increases, although these were below inflation, which reached 166% year-on-year according to the report. Prices per square meter for apartment rentals rose by 39.3% in CABA, 43.3% in GBA Norte, 92.4% in GBA Sur and 101.3% in GBA Oeste.
In the case of houses, the increases were 32% in GBA North, 74.7% in GBA South and 88.2% in GBA West.
Among the highlighted neighborhoods and localities, San Telmo , in CABA, registered the largest inter-monthly increase in apartments, with 3.8% compared to last November.
In the GBA, La Matanza led the increases in houses, with an increase of 13.5%, while Moreno stood out in apartments, with a 7.4% increase month-on-month.
www.buysellba.com
