A new Palermo arrives. How are you going?

Palermo, Villa Crespo, Chacarita and La Paternal have finally erased their borders due to the rise of the San Martin railway line. The works, which began in September 2018, will bring the railway line to 8 meters by 5 kilometers between Honduras and Garmendia streets. This will involve the elimination of eleven obstacles. One of them was the avenue Córdoba, where the bridge of Juan B. Justo disappeared from the landscape. Others are Corrientes and Newbery, Trelles-Warnes, Honduras, Gorriti, Cabrera, Niceto Vega, Loyola, Ramírez de Velasco and Girardot. These changes generate progressively progressing work on new construction. Have the developers begun to glimpse and plan a change of scenery in these neighborhoods, where level crossings are no longer an obstacle and the new streets open to pedestrians.

For Mel Mel, Mel Propiedades' sales director at the beginning, there was some confusion. "We did not know for sure what impact this would have on the development of the region and its surroundings and therefore on the positive urban effect it could generate," he said. "The speed of the work, its evolution and availability of lots provided by the city government for private real estate development, moved in a demonstration of enthusiasm also by the neighbors, who began to see the improvement of their own environment, "he adds.

It should be noted that the Government of Buenos Aires believes that the viaduct will affect about two million people living around the San Martín railway.

For years, we heard that in Palermo, there was no room for a pin, a saturated neighborhood, and that the possibilities of building land were counted on the fingers of one hand. But despite its artificial limits – imposed by trendy neighborhoods or mini-gastronomic poles – the neighborhood is preparing to expand.

One of the changes took place on Cordoba Avenue with the elevation of the crossing. It started to give a greater impetus and dynamism to an artery that seemed to be forgotten in a residential and commercial way, thus catching the eye of the developers. "We knew that Córdoba would reposition itself sooner or later, which is why many of them bought and continue to buy land that can be bought locally, but with the potential to build high-rise residential, especially now with the new code, which gives more ease of construction, "says Elbio Stoler, founder of developer DNA Developers who is advancing in the construction of Dome Soho, a company located at 4300 of this corridor in which metro square stands up well for USD 2,500 and has a potential for revaluation that, in its terms, could exceed USD 3,500. The changing profile of the avenue, former polo shop, encourages the installation of commercial proposals ranging from pharmacies, restaurants to breweries or services intended for neighborhood residents. "In addition, they do not close at eight o'clock in the evening, which generates a dark area", describes the dynamics of Stoler. Coincides with him, Diego Rybka, partner of architecture studio and developer Grupo Uno in Uno. "New lots have been sold since the beginning of the works," reaffirms. Rybka builds Vitta Palermo, two residential buildings – one on Carranza Street and the other on Córdoba – that connect one to the other across a riverine forest. "The transformation of the area gives Cordoba Avenue more prestige," says the developer who offers units of two to five bedrooms.

Thus, Palermo and its surroundings are beginning to raise the level of business types. In fact, on Juan B. Justo Avenue BW is developing Qiub, a project that will feature an office complex with gourmet offerings and eight high-tech movie theaters. A few blocks away, Mirabilia Desarrollos, brand creator who became famous for her towers located in the area, is building a business that will occupy nine plots on Fitz Roy Street between Costa Rica and Nicaragua. They will develop the first office building with the Mirabilia brand. In addition to the corporate floors, will have a gastronomic tour with five locations that will be developed in an interior courtyard. The model, widely used in Europe, seeks to create protected areas in open and public neighborhoods. The developer is attentive to the opportunities of the region. It also bought $ 13.6 million, one of the 5,500 square meter blocks sold by the national government and located at Fitz Roy at 800.

On the other hand, the redevelopment of the surrounding areas and the construction of buildings such as the Technology Science Center and the Cultural Sciences Center have benefited the district. In fact, in both cases, they were surrounded by new green spaces that revived the area, giving a new image of the Avenida Juan B. Justo. But there is more, because new tenders are being prepared on land that occupies entire blocks: in this case, only four buildings and premises are planned in the corners. Migliorisi reminds that the area is limited in height. This means that, in most cases, small projects, houses with terraces and terraces, PHs, sustainable buildings, offices and commercial spaces are planned. "Unlike other neighborhoods, the region will have a uniform growth regulated by an identical height and with a profile standardized by the new code," said the broker.

The inauguration of the first stage of the Palermo Railway Park, parallel to the San Martín railway tracks, which would link the Palermo neighborhoods to La Paternal, also gave impetus to the region. Once completed, it will add more than 25,000 square meters of green space.

The park will integrate Palermo Soho and Hollywood and is located between Juan B. Justo, Soler, Costa Rica and a new street that will be created parallel to Godoy Cruz. That's part of what Palermo Green will be. An area in which the ATV developer is trampling. He bought two land auctioned by the government, where he plans to build a conodminio project. "This is a land with high potential and there is no risk of excessive densification," says Ignacio Trabucchi, director of the promoter. In this case, the multipurpose project will have its own lung in the center of Palermo.

Sebastian Friedman, developer director BrodyFriedman, is another example of entrepreneurs who have believed in the region. At the end of the year, it will distribute Cabrera Palace, a 2200 square meter complex built in an early 1900 construction located in Cabrera at 5600. It sells 90% of the first stage offer and launches the second. "This is an area that defends prices of USD 3,500 per square meter for non-differential work, but in these cases is USD 4,200. It is estimated that, once completed, it exceeds USD 5,000. ", did he declare. Currently, at Cabrera Palace, units from 48 square meters starting from 220,000 USD, corresponding to the recycled building, are expected to be delivered for the third quarter of this year.

Spill effect

"At the beginning of the San Martin railway, many investors began to see the area with great potential and as interest grew, the interest was consolidated. ", says Diego Migliorisi, director of the property of the same name. "All this movement has pushed up the value of real estate and the demand has also been more interested, since the projection of growth and the elimination of the visible border between Palermo and Villa Crespo have become a fact", he added. In the same vein, Alberto Hoyos, head of the Residences division of the Adrián Mercado group, explains that "one point in favor is that constructive quality, the works have nothing to envy projects of other areas considered of higher category ".

In badyzing the effect of the spill, some of the significant potential lies at Villa Crespo and Chacarita, given that they have a great opportunity for growth due to the amount of land available. In addition, it can be built both in the avenues and in the interior blocks, because the new code allows a height of five floors.

Leandro Molina, commercial director of ZonaProp for Argentina and Uruguay, said Villa Crespo would be integrated in Palermo. "Today, there are more than 30 building permits and as the city evolves, developers will start betting on residential and office developments," he adds. -he.

The demand has already taken note of this phenomenon and, according to a survey conducted by Mercado Libre in January in the region, revealed that after the demolition of the bridge Juan B. Justo, research has been increased more than 80% in Chacarita . last year In the badysis, it compares the research conducted in December 2017 and January 2018 compared to those in December 2018 and January this year, and the results showed that in Chacarita, between the last month of last year and the first of this year, searches have increased by 141%. against 61% of the period compared previously, this relationship was 84% ​​in Palermo against 47, and in Villa Crespo 83 and 42%.

With regard to supply, the report shows that in the area of ​​the Juan B. Justo, Chacarita and Palermo bridges there are the neighborhoods which, from December 2018 to January 2019, had the highest growth in the number published properties: they increased by 8 to 4 cents respectively.

Before and after

Without a doubt, the works have improved the value of the land. Before the works, the area of ​​streets, houses, warehouses and factories was depreciated by almost 20%.

Although it depends on each case, the proponents estimate that the impact of the land varies between 1,400 USD / m2 (on land located closer to the consolidated areas) and 800 USD / m2, within the limit of La Paternelle

In contrast, property values ​​increased throughout the area surrounding the new viaduct. According to the platform of purchase and sale of buildings Properati: properties in Palermo and Chacarita have increased by nearly 7% since July, when the work began to open the roads, until January, then that the rest of the city remained relatively stable, with a variation of 0.7%.

In specific data, the latest survey conducted by ZonaProp shows that in Palermo, the square meter of a unit used averages US $ 3,525, while at Villa Crespo, the values ​​are around US $ 2,630 and Chacarita, 2,644 USD. With regard to the offer available on the portal, 189 new business announcements have been published, 35% of which in Palermo, many of which are within Villa Crespo and Chacarita. This reflects the dynamism of these renovated neighborhoods. However, demand remains dominated by macroeconomic variables such as the US dollar, mortgage credit and slightly higher prices after the 2017 boom. "What is happening is that this improvement, which should have a positive impact in because of the transformation of the flow of vehicles or the space gained under the bridge, is happening in a context of shrinking market, where we see a decline in property prices.It is very likely that when the market will be reactivated, these areas will be even more dynamic and demanded by these changes, "concludes Gabriel Gruber, Regional Director of Properati.