Newsletter – May 2011
HOUSING IS BOOMING IN LATIN AMERICA
Prices of new appartments have increased 30% in the past two years in Latin America and they are expected to keep going up within the next years. This is due to the high price of their commodities exports (mining, agriculture) and steady growing economies…
The Economist, London, U.K.
GLOBAL, REGIONAL AND LOCAL REAL ESTATE
Extracted from the “Anuario Inmobiliario edición 2011”
In a globalized world, real estate regional markets tend to behave similarly and become more interconnected. This piece, extracted from the third annual report by Deloitte, analyzes regional and global trends of Latin America, and thoroughly studies Argentina’s real estate outlook.
Argentina’s economy recovered in 2010, and for 2011 this expansion is expected to continue, with an annual growth of 5%. Construction followed this positive trend and is slowly recovering. The same is happening with property values and its trades. This can be mainly verified in Ciudad de Buenos Aires (CABA) and the Northern and Southwest corridors of the Gran Buenos Aires.
The main driver of this economic recovery has been residential development. This is due to investors demand for a safe haven to preserve the value of their savings in an inflationary context. Nevertheless, CABA is showing signs of exhaustion: consolidated neighborhoods preferred by investors have almost no land left. While other zones lack the necessary infrastructure for investment attraction. In the aforementioned neighborhoods, new m2 oscillates between U$S 2.100 and 5.100, incidence is high and affects both the values and the profitability of the projects. This scenario poses a problem when looking for alternative zones to expand the present market.
Perspectives are different in the Gran Buenos Aires, where both in the Northern corridor as well as the “Green Triangle” in the southwest, bigger investments levels are being attract in those zones, values are 20% lower than those in the CABA. Lately, there have been many multiuse mega-projects being planned. Some which venture in concepts of intelligent and sustainable neighborhoods.
URBAN RAMOS TOWER, Ramos Mejía, Buenos Aires
New high end residential development in Buenos Aires Western suburbs, designed and developed by CLGyA.
URBAN RAMOS Tower has been developed for the upper middle class of the prosperous commercial and industrial Buenos Aires Western suburbs.
This contemporary design building has two and three bedroom apartments. All have great views to the parks surrounding and to the low density neighborhoods. The complex has parking spaces, and amenities such as swimming pool, solarium and outdoor barbecue areas.
