The Argentine real estate market is being boosted by the sale of the most expensive properties.This year, the property market in Argentina has been showing some positive signs, which is mostly down to the increase in sales of the Buenos Aires high-end properties. In February of this year, 54.1% of all the properties purchased went for a price that exceeded $ 250,000 Argentine pesos (in dollars, $ 62,500). This is an improvement when compared with property sales from February last year. In 2010, the most expensive places only occupied 42.4% of property sales, so things have really come around.

This change in purchasing trends is a knock-in effect from the down turning, global economic situation. With economic instability comes the inevitable scarcity of credit, as banks are reluctant to lend to buyers. Less people can get mortgages from the banks, hence only the wealthiest of investors have any purchasing power, which explains why it is the most expensive properties that are dominating the number of overall sales.

These high-end homes are being bought up by buyers who are fortunate enough to be able to pay in cash for the whole property outright. Properties bought in this way generally serve as an investment; a secure place to store capital. However, in general, properties that bought for more than $ 500,000 US dollars are mostly kept as homes for the buyer instead.

Whereas, the majority of properties that cost around $ 250,000 pesos tend to be rented out. Despite the new dominance of Buenos Aires high-end properties being caused by lack of credit from banks, the figures from 2010 and 2011 do show that the amount of sales and property values have increased, which too has affected sales. Since last year, the average price of property has risen 9.2%, which is a significant increase. This rise in value is due to the fact that both investors and family buyers have higher expectations and are willing to pay for it.

Buyers are prepared to pay more and there are also new neighborhoods that are becoming more popular something that also boosts prices. In February of this year, the highest amount of money in 14 years was exchanged in real estate transactions, despite the fact that during this month not that many deals were closed between brokers and buyers. This again goes to show that Buenos Aires high-end properties, high-price properties are boosting the real estate market in Argentina.

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