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The top area of Palermo where apartment prices do not stop rising and it is still a good deal to buy - La Nacion Propiedades
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La zona top de Palermo en la que los precios de los departamentos no paran de subir y aún es buen negocio comprar
La zona conocida sigue siendo una oportunidad para las inversiones inmobiliarias: las razones y los precios
www.lanacion.com.ar
April 2, 2024
The area known as Palermo Freud continues to be an opportunity for real estate investments: the reasons and prices
By Candelaria Reinoso Taccone
The area known as Palermo Freud continues to be an opportunity for real estate investments: the reasons and prices
In the middle of the hectic modernity of Palermo Soho and the quiet Palermo Botánico , between Scalabrini Ortiz, Santa Fe, Coronel Díaz avenues and Soler street, there is an area known as Palermo Freud or Palermo Sensible, thus renamed by the people of Buenos Aires due to the large number of psychologists who established their offices in the neighborhood since the mid-70s, as well as the specialized bookstores and bars whose names allude to the discipline.
The area stands out for its particular charm, especially in the four blocks of Charcas Boulevard , where a vibrant gastronomic center emerges. With an architecture that mixes low houses, historic buildings and new developments , this area experienced a notable ecological boost in the 90s thanks to the initiative of intellectuals and artists who planted numerous trees.
Its strategic location, with access to two subway lines and a variety of bus lines, makes it a nerve center in the city. Unlike Soho, Palermo Sensible also offers large shopping centers, cinemas, galleries and renowned stores, which add to its charm of boutique and gourmet establishments in the internal streets.
Palermo Freud rebounds after in 2023 the offer value was lower than three years ago and had fallen to levels similar to those observed in 2017-2018.
Although the Freudian mystique is barely a memory today, it remains one of the most sought after neighborhoods for tenants who aim to live in a quiet, comfortable and distinguished area , but who do not necessarily want to access premium locations , even though these typologies are increasing. “Years ago, real estate developments in the area aimed at a moderate market, but as the years went by, the quality of the projects increased ,” says Germán Gómez Picasso, director of Reporte Inmobiliario.
Added to this trend is a new phenomenon, and that is that the average price per brand new square meter is US$3,504 , which compared to the US$3,293 average value a year ago shows an improvement of 6.40% in just one year , according to the latest Real Estate Report survey.
One fact to keep in mind is that until the beginning of last year the area had recorded three consecutive years of decline in the sale price of brand new properties. This means that those who bet on the area a year ago , when the sale value was at its lowest, are now recovering . “ All the numbers indicate that those who bought six months ago made the best purchase in the universe ,” says Gómez Picasso.
More expensive than the other Palermos
The requested value for a brand new apartment is between US$3,181/m² and US$4,239/m².
In Palmero Freud, the projects under construction or recently completed currently total 62,892 m², having decreased slightly compared to the last three years. Of the 26 registered, 10 are in the well stage, that is, they are just beginning. Regarding the requested values, they are between US$3,181/m² and US$4,239/m² , while last year the price range was between US$3,114/m² and US$3,688/m². The value is within what is being asked for in Palermo Soho and Palermo Hollywood, where the square meter averages US$3,300 and US$3,338 respectively, according to the latest surveys shared by Gómez Picasso. “Another advantage is that it is a consolidated neighborhood , unlike the ' new Palermos ' that are constantly emerging and many of them end up being just commercial names,” adds the director.
Regarding the typologies, the majority of the products that are built are two-bedrooms, with a smaller participation of studio apartments and two-bedrooms. This could be explained by its key location for those who live in the interior of the country and have children who study in the city or need a base for when they come to Buenos Aires. Those who live in the neighborhood are mostly university students with 42% , according to the last census, with 68% occupying the home as owners.
Most of those who live in the neighborhood are university students, with 42%.
“It is an area that stands out for its proximity to the most commercial area of the neighborhood , with Alto Palermo just 100 meters away,” says Ignacio Mel, director of Mel Propiedades and adds: “However, it has its own identity that is “It is valued for its tranquility and neighborhood air.” According to the broker , the area always constituted the natural spillover of the growth that occurred around Santa Fe Avenue . As it became saturated, developments turned to Palermo Freud, with the advantage of offering quieter streets and meters from all the commercial offerings. “The major real estate development began after 2005 and accelerated as the years went by, which attracted a profile of young people , since they usually offer small units,” Mel mentions.
One of the most renowned projects is Palais Salguero , located on the corner of Salguero and Charcas, an emblematic development that maintains the original façade of the building with one, two and three-room units. The building takes advantage of the double height that the construction originally had on the first five floors, while from floors six to 14 it has a modern glass façade. However, in this case, brand new units are in short supply in the small to medium-sized segments. “This building has few units available, studio apartments and two rooms, for an average price of US$3,500/m²,” details Eduardo Bagnato, director of Toribio Achával, the firm that markets it.
Palais Salguero, located on the corner of Salguero and Charcas, an emblematic development that maintains the original façade of the building with one, two and three-room units.
Property value rebound
The Palermo Freud phenomenon is not exclusive of what happens in other neighborhoods of the city. After three years of decline, the value of the square meter is beginning to rise. In March, the average price per square meter in CABA increased by 0.4% and accumulated nine consecutive months of increases since July 2023 with 2.3% , according to the latest data from the Zonaprop report.
After four years of decline, property values are rebounding.
“This is good news for the investor who bought at a low price a couple of years ago and the apartment was worth less every year. Six months ago, a rebound in values was seen throughout the city , beyond the increases in construction costs in dollars . “It is what was expected,” says Gómez Picasso. The reduction in the price of the dollar and its subsequent stabilization in a range close to $1000 caused the rate of increase in the cost of building in dollars during March to be 26% compared to the previous month. Thus, taking the parallel market price, the cost per salable square meter reached US$1,318.82 and the total value to be invested in the construction of the typical building was slightly above one million dollars.
However, the specialist does not exclusively attribute the increase in property values to this phenomenon. He explains that the political and economic changes that people saw coming with the 2023 presidential elections were also part of the trigger, at which time more units began to be sold, both brand new and used, a dynamic that is reflected in the number of writings from last year, when 2023 closed with a total of 40,539, with an increase of 20.1% compared to 2022 , when 33,753 transactions were carried out.
For six months there has been a rebound in property values throughout the city
“The properties were for sale and were at historically low values a long time ago, what appeared was the buyer. The departure of Kirchnerism activated demand with the hope of a new, more transparent economy. This caused supply to decrease and prices to begin to rise, especially for quality products and in good locations,” mentions Gómez Picasso.
This could mean “ an investment opportunity ,” as mentioned by Juan Manuel Vázquez Blanco, general manager of Fabián Achaval Propiedades. “As the dollar is flat and there is inflation in pesos, this affects construction costs, which increased considerably and will probably continue to rise,” he warns. “This increase will eventually impact the prices of brand new units. Developers probably won't be able to keep values stable for much longer. Sooner or later, prices will end up rising gradually , not exorbitantly, but progressively, so the time to buy is now.”
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