Argentina Real Estate: Still Holding Up

Real Estate in Argentina

"The real estate market in Argentina has fared much better than the US or Europe over the last year as almost all real estate transactions in Argentina are non-leveraged," said Scott Mathis. "Obviously, sales have stalled somewhat as buyers are waiting to see what happens around the globe but real estate prices have not be hit nearly as hard in Argentina." The private equity company Mathis chairs - DPEC Partners - invests in Argentine real estate.

The Argentine real estate market continues to remain stable for two reasons - lack of credit and paltry investment options, according to Reynolds Propiedades SA. "Argentines have been burnt in the past with anything resembling a bank [as a result of the 2001 economic crisis.]" according to Reynolds. "As such, nationals mistrust Argentine based banks and now, because of the U.S. crisis, have founded fears over U.S. and European financial institutions."

This fear of banks and other monetary markets have translated to a great deal of investment in hard assets such as property. "The preferred investment tier lies in the area of USD 50,000 to USD 150,000 which allows investors to rent these units to local tenants and attempt to satisfy the massive shortage of living space," according to Reynolds.

International buyers have been attracted to the Argentine property sector because of the relatively affordable prices. "You can buy property in Argentina at a fraction of what you would pay in the US and in Europe" said Mathis. "Buenos Aires in the most popular but Mendoza [Argentina's Napa valley] is gaining recognition for its wonderful wine route and stature as making the best Malbec in the world."

There are investment opportunities elsewhere in the country as well. "We see a grand entry opportunity not only in traditional farming activity, such as soy and cattle, but also in alternate crops like vineyards, export plums and walnuts," according to Reynolds Propiedades SA. Ski heaven San Carlos de Bariloche and the town of Cafayate in Valles Calchaquíes are other points of interest.

Buying property in Argentina

While foreigners are allowed to buy in Argentina, there are some restrictions regarding owning land in border areas. "Foreigners are allowed to buy property," said Jamie Schectman owner of Bariloche Vacation Rental (www.barilochevacationrental.com). They have the same rights as Argentineans in most parts. That said, there are some restrictions buying in areas that fall under the Zona Seguridad - "roughly within a 100 kilometer of the Chilean border," according to Living in Patagonia (http://www.livinginpatagonia.com), a blog chronicling the lives of an American couple, Jamie and Shanie Schectman.

However, recent changes to the laws governing such purchases have made it easier to acquire property in that part of Argentina. Non-Argentineans can now buy real estate without much ado as long as the property under consideration is located in an urban or suburban area, is less than 5,000 square meters, and isn't bought for commercial purposes.

Read full text on NuWire Investor.