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The impact of the new Urban Planning Code of Buenos Aires: what new buildings and homes will look like in the coming years - Infobae
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www.infobae.com
January 05, 2025
The regulations redefine heights, concentrate developments on avenues and limit projects on residential streets. Some experts warn of the challenges that this will mean for access to housing and the market.
By Jose Luis Cieri
Changes in the approach to urban development raise questions about the future of new constructions and neighborhood aesthetics (Illustrative Image Infobae)
The city of Buenos Aires is facing a crucial moment of change in its real estate development following the recent entry into force of the new Urban Planning Code (CUR) which has already been published in the Official Gazette. This set of regulations redefines construction limits, reorganizes buildability and prioritizes growth on main avenues.
"The new Urban Planning Code seeks to strengthen neighborhood identity," said the head of the Buenos Aires government, Jorge Macri , who stressed that the regulations will prioritize large developments on avenues and will promote the development of the south with incentives for investors.
The new regulations seek to promote more orderly development, although they also generated debates about their possible effects on housing supply and the dynamics of the real estate market. The CUR establishes a more restrictive approach to internal residential areas, limits the possibility of new constructions on minor streets and concentrates activity in large urban corridors.
These measures were justified by the city government as a strategy to preserve neighborhood identity and avoid saturation in low-density residential areas. However, experts agree that these restrictions could have a significant impact on the availability of land and the cost of properties in the city.
In parallel, the CUR proposes a reorganisation of the real estate market that also affects small developers and that will have to be reviewed again in four years.
Historically, smaller-scale developments on inner streets offered opportunities for low-cost development, but these restrictions could lead to concentration in the hands of large players, while excluding smaller ones. Furthermore, with the decrease in viable land, land values on avenues are expected to increase significantly, also affecting end buyers.
Although this measure seeks to promote decentralization and balance between different urban areas, it also raises questions about the concentration of construction activity and its impact on land prices.
A highlight of the new scheme is the establishment of stricter limits
The CCA concept also creates tension in the sector due to the difficulties it could cause in implementation. Developers must balance the profitability of their projects with the costs associated with the investments required in the south or in heritage buildings.
Santiago Levrio , institutional director of Alianza Urbana, highlighted that “the regulation seeks to group building capacity in high-traffic areas and avoid projects in less dense residential areas. However, the amount of viable land for new construction decreases by 30%, and in areas with high demand, the reduction reaches 50%.” This represents a major challenge for developers who depend on a wide supply of land to plan their projects.
Levrio also said that the maximum heights on certain avenues will reach 23 stories, while on others they will be limited to 14 stories. In the densest neighborhoods, the limit will be 9 stories, and in less dense areas, 4-story buildings will predominate. In this context, approximately 60% of the city will be restricted to low-rise construction. “For the tallest buildings, except for the exceptions brought by the surprise towers that will break the landscape of several neighborhoods, the rest will remain the same,” he added.
This reorganization could accentuate the inequality between different areas of the city, with a strong impact on prices and access to housing, according to the developer and construction sector, while more than 50,000 units are still under construction in the city.
According to Levrio, “this creates more shade on the public road and affects the harmony with neighbouring buildings. The resulting architecture resembles that of cities in the former Soviet Union, far removed from the identity of Buenos Aires.”
Casa Áurea, a project that will be built in Quintana y Pico, in the Saavedra neighborhood, with a design based on the brand new Buenos Aires CUR
Gonzalo Bustos , director of FOT Libre, explained that the new regulations eliminate setbacks and modify the construction depth in Low-Rise Sustainability Units (USAB). This increases the value of the land and limits the capacity of developers to carry out profitable projects.
"In areas such as Villa Ortúzar, construction activity will tend to be very limited, concentrating developments in areas with higher density," warned Bustos.
Architectural designs will also be affected by the new permitted heights. On main avenues, towers will be allowed to reach 68 metres in height thanks to the CCA, which could significantly modify the urban profile.
Kevin Savelski , director of Grupo 8.66, added: “This allows the construction of towers of up to 68 meters – or approximately 22 floors – on main avenues, which revives the figure of the so-called 'surprise towers', eliminated in 2018.” However, these constructions have very specific limitations, such as being located on land of at least 2,500 square meters.
Regarding permitted heights, the CUR introduces greater flexibility in low sustainability units, although with certain restrictions on land use. The new categorization includes Low Sustainability Unit 0 (USAB 0), which replaces the old USAB 1, which allows buildings up to 9 meters (ground floor plus two floors), without setback requirements.
Another significant change is the optimization of the architectural design. For example, the minimum surface area of vertical courtyards is reduced to 20 square meters (6 square meters less than under the previous regulations). “In this sense, the goal is to “maximize the use of architectural floors and reduce costs for non-habitable areas,” Savelski explained.
Both the current and future homes have a great connection with the outside, due to the learning from the pandemic times, something that not even the CUR can avoid.
However, on internal streets, height restrictions and the elimination of setbacks could result in more compact buildings with less recreational space.
“Large developers will be able to benefit from towers on main avenues, while smaller developers will face greater barriers due to land costs,” Savelski said. In USAB 1 and 2, where building capacity is limited, developers must optimize available space.
“The reduction in building depth is forcing us to design compact buildings, but the low profitability in these areas could put a stop to new projects,” Savelski added.
In low-density residential areas, regulations seek to limit commercial use of basements, which could make it difficult to include local premises in new projects.
“The building approved under USAM (Medium-Rise Sustainability Unit) zoning allows for a ground floor plus five upper floors and two set-backs. However, with the new regulations, this zoning would change to USAB 2, which drastically reduced the construction capacity.”
Render of a 2-bedroom apartment in a building that will begin to be built in 2025 in the northern area of CABA
Kulzer stressed that the reduction in construction capacity limits private investments that could improve neighborhood infrastructure, “such as sidewalks, lighting and security.”
Levrio commented: “Demand will be concentrated in districts with seven stories or more, leaving out many entrepreneurs. Land values are likely to increase significantly in an active market, or the sector will face an economic downturn if the market stagnates.”
The future of construction in CABA will depend on how these regulations are integrated into a constantly evolving market. The sector faces a complex scenario but full of challenges.
Kevin Savelski concluded: “Large developers could capitalize on CUR tools, while SMEs will face greater difficulties, which could change the landscape of the sector.”
www.buysellba.cm
Source:
El impacto del nuevo Código Urbanístico porteño: cómo serán los nuevos edificios y viviendas en los próximos años
La normativa redefine alturas, concentra desarrollos en avenidas y limita proyectos en calles residenciales. Algunos expertos alertan sobre los desafíos que eso significará para el acceso a la vivienda y el mercado
www.infobae.com
January 05, 2025
The regulations redefine heights, concentrate developments on avenues and limit projects on residential streets. Some experts warn of the challenges that this will mean for access to housing and the market.
By Jose Luis Cieri
Changes in the approach to urban development raise questions about the future of new constructions and neighborhood aesthetics (Illustrative Image Infobae)
The city of Buenos Aires is facing a crucial moment of change in its real estate development following the recent entry into force of the new Urban Planning Code (CUR) which has already been published in the Official Gazette. This set of regulations redefines construction limits, reorganizes buildability and prioritizes growth on main avenues.
"The new Urban Planning Code seeks to strengthen neighborhood identity," said the head of the Buenos Aires government, Jorge Macri , who stressed that the regulations will prioritize large developments on avenues and will promote the development of the south with incentives for investors.
The new regulations seek to promote more orderly development, although they also generated debates about their possible effects on housing supply and the dynamics of the real estate market. The CUR establishes a more restrictive approach to internal residential areas, limits the possibility of new constructions on minor streets and concentrates activity in large urban corridors.
These measures were justified by the city government as a strategy to preserve neighborhood identity and avoid saturation in low-density residential areas. However, experts agree that these restrictions could have a significant impact on the availability of land and the cost of properties in the city.
In parallel, the CUR proposes a reorganisation of the real estate market that also affects small developers and that will have to be reviewed again in four years.
Historically, smaller-scale developments on inner streets offered opportunities for low-cost development, but these restrictions could lead to concentration in the hands of large players, while excluding smaller ones. Furthermore, with the decrease in viable land, land values on avenues are expected to increase significantly, also affecting end buyers.
Reconfiguring the rules
The CUR also introduces innovative tools such as the Additional Construction Capacity (CCA), which enables the transfer of building rights between different areas of the city. This mechanism allows developers to add floors in projects located on avenues in the north of the city, as long as they invest in the renovation of heritage buildings or in projects located in the southern area.Although this measure seeks to promote decentralization and balance between different urban areas, it also raises questions about the concentration of construction activity and its impact on land prices.
A highlight of the new scheme is the establishment of stricter limits
The CCA concept also creates tension in the sector due to the difficulties it could cause in implementation. Developers must balance the profitability of their projects with the costs associated with the investments required in the south or in heritage buildings.
Santiago Levrio , institutional director of Alianza Urbana, highlighted that “the regulation seeks to group building capacity in high-traffic areas and avoid projects in less dense residential areas. However, the amount of viable land for new construction decreases by 30%, and in areas with high demand, the reduction reaches 50%.” This represents a major challenge for developers who depend on a wide supply of land to plan their projects.
Levrio also said that the maximum heights on certain avenues will reach 23 stories, while on others they will be limited to 14 stories. In the densest neighborhoods, the limit will be 9 stories, and in less dense areas, 4-story buildings will predominate. In this context, approximately 60% of the city will be restricted to low-rise construction. “For the tallest buildings, except for the exceptions brought by the surprise towers that will break the landscape of several neighborhoods, the rest will remain the same,” he added.
This reorganization could accentuate the inequality between different areas of the city, with a strong impact on prices and access to housing, according to the developer and construction sector, while more than 50,000 units are still under construction in the city.
Impact on architectural designs
A controversial change is the elimination of mandatory setbacks in low-rise buildings.According to Levrio, “this creates more shade on the public road and affects the harmony with neighbouring buildings. The resulting architecture resembles that of cities in the former Soviet Union, far removed from the identity of Buenos Aires.”
Casa Áurea, a project that will be built in Quintana y Pico, in the Saavedra neighborhood, with a design based on the brand new Buenos Aires CUR
Gonzalo Bustos , director of FOT Libre, explained that the new regulations eliminate setbacks and modify the construction depth in Low-Rise Sustainability Units (USAB). This increases the value of the land and limits the capacity of developers to carry out profitable projects.
"In areas such as Villa Ortúzar, construction activity will tend to be very limited, concentrating developments in areas with higher density," warned Bustos.
Architectural designs will also be affected by the new permitted heights. On main avenues, towers will be allowed to reach 68 metres in height thanks to the CCA, which could significantly modify the urban profile.
Kevin Savelski , director of Grupo 8.66, added: “This allows the construction of towers of up to 68 meters – or approximately 22 floors – on main avenues, which revives the figure of the so-called 'surprise towers', eliminated in 2018.” However, these constructions have very specific limitations, such as being located on land of at least 2,500 square meters.
Regarding permitted heights, the CUR introduces greater flexibility in low sustainability units, although with certain restrictions on land use. The new categorization includes Low Sustainability Unit 0 (USAB 0), which replaces the old USAB 1, which allows buildings up to 9 meters (ground floor plus two floors), without setback requirements.
Another significant change is the optimization of the architectural design. For example, the minimum surface area of vertical courtyards is reduced to 20 square meters (6 square meters less than under the previous regulations). “In this sense, the goal is to “maximize the use of architectural floors and reduce costs for non-habitable areas,” Savelski explained.
Both the current and future homes have a great connection with the outside, due to the learning from the pandemic times, something that not even the CUR can avoid.
However, on internal streets, height restrictions and the elimination of setbacks could result in more compact buildings with less recreational space.
Strategies and scenario
The segment recommends focusing projects on areas with greater buildability and considering the use of Additional Construction Capacity (CCA).“Large developers will be able to benefit from towers on main avenues, while smaller developers will face greater barriers due to land costs,” Savelski said. In USAB 1 and 2, where building capacity is limited, developers must optimize available space.
“The reduction in building depth is forcing us to design compact buildings, but the low profitability in these areas could put a stop to new projects,” Savelski added.
In low-density residential areas, regulations seek to limit commercial use of basements, which could make it difficult to include local premises in new projects.
Works under the new regulations
Claudio Kulzer , designer and partner of the developer that will build in the Saavedra neighborhood, shared how the CUR affects his project located in Quintana and Pico.“The building approved under USAM (Medium-Rise Sustainability Unit) zoning allows for a ground floor plus five upper floors and two set-backs. However, with the new regulations, this zoning would change to USAB 2, which drastically reduced the construction capacity.”
Render of a 2-bedroom apartment in a building that will begin to be built in 2025 in the northern area of CABA
Kulzer stressed that the reduction in construction capacity limits private investments that could improve neighborhood infrastructure, “such as sidewalks, lighting and security.”
Projections
The new regulations will intensify the concentration of housing on avenues and in high-density areas. This could lead to a sustained increase in property prices and rents.Levrio commented: “Demand will be concentrated in districts with seven stories or more, leaving out many entrepreneurs. Land values are likely to increase significantly in an active market, or the sector will face an economic downturn if the market stagnates.”
The future of construction in CABA will depend on how these regulations are integrated into a constantly evolving market. The sector faces a complex scenario but full of challenges.
Kevin Savelski concluded: “Large developers could capitalize on CUR tools, while SMEs will face greater difficulties, which could change the landscape of the sector.”
www.buysellba.cm
