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The downtown neighborhood that sells offices for less than US$1000/m² and can be converted into modern apartments
December 5, 2023
A historic and cultural neighborhood offers the perfect setting for those who wish to invest in the real estate market at prices never seen before
For almost three years, this Buenos Aires neighborhood with historic buildings has published prices that range between US$800/m2 and US$1000/m2
In the heart of the city of Buenos Aires, located between the neighborhoods of Recoleta , Retiro and Puerto Madero , the San Nicolás neighborhood stands as a fundamental witness of the evolution and transformation of the city of Buenos Aires over time. Recognized as a financial and commercial center, this neighborhood is home to a large number of banks and companies in its imposing office buildings.
Delimited by the avenues Córdoba, Eduardo Madero, La Rábida Norte - which surrounds Plaza De Mayo and then leads to Avenida de Mayo itself - and Callao, the neighborhood is not only the nerve center of the economic and political life of the city. , but also brings together those who seek to enjoy its large concentration of theaters on the famous Corrientes Avenue, thus consolidating itself as a cultural center of reference in the metropolitan area.
The neighborhood houses a large number of banks and companies in its imposing office buildings.
Likewise, it offers a varied gastronomic offer, with renowned restaurants and an active nightlife that delights locals and visitors. Its strategic location and easy access to public transport make it an ideal starting point for exploring the city in all directions.
Currently, however, the neighborhood faces a worrying panorama of almost total unemployment as a result of the pandemic that devastated the downtown area. The first blow came with the expansion of the highways, when many inhabitants of Buenos Aires accepted the challenge of moving to the third cordon and making the trip to the city center during the week. However, the final blow was dealt by the pandemic, since the rise of remote work left countless empty offices in the city. Today, San Nicolás is torn between uncertainty and the need to reinvent itself to recover its lost vitality.
San Nicolás brings together those who seek to enjoy its great concentration of theaters on the famous Corrientes Avenue.
An opportunity arises in the midst of inactivity: for almost three years, its offices have remained empty and for sale, with publication prices ranging between US$800 and US$1000 per square meter, according to offers on Zonaprop. These units are located in old buildings that once housed homes, but were later transformed into studios or offices that kept the kitchens and bathrooms integrated within the apartment environments.
This characteristic means that, if you want to restore their residential function, it would not be necessary to carry out expensive plumbing installations to convert them into apartments. This situation provides a unique opportunity for those investors or individuals seeking to reactivate the neighborhood and take advantage of its housing potential.
“These buildings were originally built as homes, which implies that their adaptation for residential use does not present the same complexity as those initially conceived as offices, particularly with regard to health issues,” explains Miguel Pato, urban issues analyst. The current proposal is not about demolishing to create new spaces, but about restoring and returning residential use to buildings that since the 1940s were mainly occupied by offices, mostly by lawyers.
The Colón theater, an emblematic building of Buenos Aires located within the San Nicolás neighborhood
“The location of these buildings is unbeatable, since they are located in the epicenter of the best connectivity in the Metropolitan Area,” he adds. With three Line D stations, three Line B stations, one Line C station and the Combis Obelisco Terminal, residents have quick and convenient access to public transportation.
In contrast to the average value of living in Palermo , where buying a property is close to US$2,987m² according to the latest Zonaprop survey, this typology abounds in the San Nicolás neighborhood and is presented as an attractive alternative a few blocks from Recoleta.
“The pandemic had a significant impact on the real estate market, leaving much of the city unoccupied. As a result, units begin to be released and prices are affected, closing up to 20% or 30% below their original value,” explains Jorge Mazzorco, from House Inmobliaria. He claims that this situation creates an unprecedented opportunity to acquire high-quality property at considerably lower prices. “You can acquire an apartment in excellent condition in a historic building at a cost even lower than the usual value,” he says.
The area's affordable prices make it easy to acquire apartments in historic buildings, even below typical market values.
The Bencich building on 827 Córdoba Avenue is a concrete example of this possibility.
On the fourth floor of this building, a unit for sale at US$1,200/m² of approximately 220 square meters in original condition.
Sales opportunities
In the historic Bencich Building , built in 1920 and located in Cordoba at 800, an ideal setting is presented. On the fourth floor there is a unit for sale at US$1,200/m² of approximately 220 square meters in original condition, perfectly suitable to be converted into a residential apartment. The notable thing about the emblematic construction is that it was originally designed as a home, so it is not necessary to modify the co-ownership regulations to carry out its transformation.House Inmobliaria also offers another 120 square meter property for sale for US$190,000 in the same building. It is an office located on the sixth floor with an open view to the front and terrace. It has a large entrance hall, a separate kitchen, two bathrooms and three offices. One of these can be divided into two offices or can be used as an open office with work tables.
These apartments offer unique architectural features that reflect the quality and luxury of the era in which it was built. The traditional materials used, such as the thick masonry walls, demonstrate the attention to detail and durability that went into the buildings of yesteryear. In addition, it has important ironwork and high ceilings, elements that add distinctive charm and elegance. These characteristics contrast notably with many contemporary constructions , where there is a tendency to skimp on quality and architectural details.
On Florida at 400, a large 252m² office is for sale located in a distinguished period building.
This property has a sale price of US$1,150 per square meter and monthly expenses of $112,000.
This space used to house offices, a board room and work areas.
Within this context, we find an outstanding case about Florida at 400 published in Zonaprop: a large 252m² office located in a distinguished period building. This semi-floor, with a privileged location towards the street, has an impressive reception area and nine functional spaces that used to house offices, a board room and work areas. In addition, it offers two bathrooms and a kitchen built inside. It has a sale price of US$1,150 per square meter and monthly expenses of $112,000.
“The reality is that today there is a lot of opportunity in the San Nicolás area, with apartments for less than US$1000/m² , although they may need some renovations,” says Giselda Covello, developer of the real estate agency of the same name. As she says, what sells the most are smaller properties that are then used for temporary rentals , which “is booming at the moment.”
“There are many offices that are sold at very cheap prices in emblematic buildings with very good construction. The home office has meant that 600 m² spaces are no longer needed to work, almost all companies are managing themselves that way,” says Covello. Recently, he says that he sold a 44 m² office for approximately US$880 per square meter on 750 Lavalle and the buyer renovated it to be used for rental on Airbnb. Currently, he is selling another former office on Uruguay 500 of 50 m² for US$1,300 per square meter and $52,000 in expenses. “Prices dropped a lot, apartments that used to sell for US$140,000 are now selling for US$100,000,” he adds.
This former office on Uruguay at 500 has 50 m² and is sold for US$1,300 per square meter.
Many old offices are being transformed into temporary rentals.
What sells the most in the area are smaller properties.
But that's not all, there are also complete buildings for sale, originally intended for professional use, which are being acquired by developers interested in converting them to residential. Located just over 10 blocks from La Biela, in the San Nicolás neighborhood, these buildings represent a unique opportunity for those looking to enter the real estate market.
“Today we can find block buildings at a value between US$500 and US$1000 per square meter, depending on the type of building, its category and the front meters, ideal for developing Airbnb-style apartments,” says Lisandro de Achaval, director of real estate agency Achaval Cornejo and assures that “it is a very attractive area for those who want to bet on the future and buy something of excellent quality and a lot of potential.”
The San Nicolás neighborhood is delimited by the avenues Córdoba, Eduardo Madero, La Rábida Norte - which surrounds the Plaza De Mayo and then flows into Avenida de Mayo itself - and Callao.
There is currently Law 6508 on the Transformation of the Central Area of the city of Buenos Aires , which was enacted in December 2021 and proposes to reconvert the microcenter through credits and tax incentives and aims to restore offices into accessible housing. However, it does not include the entire neighborhood. Surrounded by four of the six most important avenues in the central area (9 de Julio Avenue, Córdoba, Corrientes and Callao), it is in this micro area of San Nicolás where the ideal conditions exist to apply it.
On the other hand, the cultural offering is truly exceptional, with the Teatro Colón, the Teatro Cervantes and the Teatro San Martín, to name a few. In addition, the San Nicolás neighborhood is home to many cafes on the historic circuit, five in total, which enrich the area's cultural scene.
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