Buenos Aires, dear: it is the second city in the region according to the prices of its properties

Buenos Aires is the second most expensive city in Latin America to buy property compared to other places in Argentina, Brazil, Mexico, Peru, Ecuador and Panama, according to a report from the Zonaprop portal. Currently, the average value of his square meter is $ 2,413. Monterrey, Mexico, is the one that takes first place in this regional award ranking, with a cost of $ 2,422 per m2.

For its part, the capital of Panama is positioned in third place in the sales ranking with a value of 2,062 USD per m2. It is followed by Mexico City, USD 1,922, and Guadalajara, USD 1,897 per m2, also in Aztec territory.

Leandro Molina, commercial director of Zonaprop in Argentina and Uruguay, said Infobae: “That Buenos Aires is the second city with the highest prices regionally is due to its relevance as a city on the continent. Likewise, it is important to take into account that accumulates a decrease in prices of 5.1% in 2021 and 13.8% compared to the maximum of 2019. In turn, in Zonaprop 34% of the total apartments for sale, it has been slowed down in the last 6 months with an average discount currently of 8% ”.

“Its position confirms the relevance of Buenos Aires as a city at the regional level. We must take into account the fact that it cumulates a drop in prices of 5.1% in 2021 and 13.8% compared to the maximum of 2019 ″ (Molina)

From 2016 to 2017, in parallel with the launch of UVA credits and the consequent increase in the demand for the purchase of goods motivated by this financial tool, we are witnessing an increase in real estate values.

“At the same time, buy and sell searches on our portal reached 64% of the total. The sustained price growth held steady and reached its peak of $ 2,800 per m2, added Molina.

But then came economic decoupling, devaluations, a change of government and the pandemic that brought prices down in Argentina.

Carlos munoz, from developer 4S Real Estate, with companies and businesses in Aztec land and the region, stressed that “prices in Mexico have not fallen, on the contrary, they have increased. Due to the increasing costs of steel and other materials used in the construction of houses. Steel has soared (they estimate more than 200% between August 2020 and 2021 in this country, one of the main producers in the region), and there is no possible decline in the short term. Here, the prices of the works are moving the valuations of the goods ”.

“Prices in Mexico have not fallen, on the contrary, they have increased. Due to the increased costs of steel and other materials used for the construction of houses ”(Muñoz)

Other values

According to the report, in the middle area of ​​the podium are: São Paulo ($ 1,789 / m2), Rio de Janeiro ($ 1,652 / m2), Rosario ($ 1,620 / m2), Lima ($ 1,609 / m2) ), Curitiba (USD 1,372 / m2) and Quito (USD 1,284 / m2). While the cheapest to acquire a property are: Belo Horizonte (1,016 USD / m2) and Cordoba (1,204 USD / m2).

By carrying out an analysis of the variation in the original currency of the real estate advertisement published on the portal, Curitiba (Brazil) stands out as the city that recorded the highest increase in value (+ 16%) between December 2019 and July 2021. Followed by Lima (+ 15%), Guadalajara (+ 13%) and Monterrey (+ 10%). In turn, São Paulo (+ 6%), Belo Horizonte (+ 2%) and Rio de Janeiro (+ 2%) in Brazil also posted increases.

In Argentina, the city of Córdoba is the one that suffered the biggest price drop in Latin America (-18%) because of the pandemic. Likewise, CABA (-12%) and Rosario (-9%) recorded a decrease. Followed by Panama (-5%), Quito (-4%) and Mexico (-3%).

“The city of Cordoba is one of the cheapest to invest. A 50m2, two-room apartment is located at $ 1,204 per m2, down from 31 months ago accumulating a 22.1% drop from the peak value recorded in 2019. Additionally, there are two key factors that affect prices: it is a city that has cheaper land and cheaper construction costs.», Explained Molina.

Evolution of sales prices in US currency

When measuring the dollar values ​​of units for sale, according to the exchange rates corresponding to each country, the Zonaprop report indicates that the Mexican cities of Guadalajara (+ 23%), Monterrey (+ 20%) and Mexico DF (+ 6%) are those who have recorded the largest increase in the last 19 months.

“Apartments for sale in Mexico, in the standard second-hand segment, can be worth between 25,000 and 30,000 (which is most of the properties on offer), then there is the higher quality average residential, the premium and the premium plus, with units over $ 1,000,000, ”Muñoz said.

On the other hand, the rest of the places in Latin America show a decrease in their costs in dollars. In this sense, Rio de Janeiro is the capital with the largest drop in value (-21%) followed by Belo Horizonte (-20%) and Cordoba (-18%).

Molina concluded that “the evolution of falling prices is a trend that we analyze taking into account two factors that influence the costs of real estate. On the one hand, the value of the new units entering the portal, these currently exhibit almost 4% cheaper prices compared to the properties already published, and on the other hand, the downward re-pricing, which is now raises 34% of opinions. We can see that this does not yet seem to stop the fall in selling prices ”.

KEEP READING: