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Thursday, 02 August 2007 15:21 |
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Page 1 of 2  Real
estate investment opportunities in Argentina are beginning to rival
those in more well-known emerging markets, in part due to the country's
rapidly growing economy. With GDP rising by 8.5% in 2006 alone and
further growth of 7.5% predicted for 2007, Argentina possesses a strong
economy that provides solid potential for investors. Combine this with
a government backed tourism industry which has grown 10% year on year
since 2003, and property prices which have risen 50% since 2002.
According
to the Argentine real estate trade group, Camara Inmobiliaria
Argentina, housing prices have increased 50% since 2002, while The
Guardian reports that Argentine property prices have been rising
steadily over the last few years, with house prices in the Buenos
Aires' wealthier districts up by as much as 25% last year alone. Yet
although real estate prices have soared, they still look surprisinglycheap, with "The Guardian reports that Argentine property prices have been rising steadily over the last few years" |
prices in prime real estate locations still only one-tenth of what they are in the United States and Europe. The
rapid increase in house prices has left the market out of reach of many
Argentineans, creating a high demand for rental properties and thus a
superb opportunity for the real estate investor. Rentals can also prove
profitable for the buy-to-let investor. In major tourist and business
areas in Argentina, apartments are often provided fully furnished, at
prices lower than the better hotels. Online booking agencies make the
process simple and profitable for the overseas investor.
In
summary, Argentina has a booming economy that presents a wealth of
opportunities for the real estate investor, both in the rapidly growing
domestic market and in the thriving tourist industry. With impressive,
consistent growth in both sectors, backed by positive government
initiatives, investors can expect both steady capital growth and
generous rental income for the foreseeable future.
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