Buenos Aires gated comunities, a secure investment?
A massive $ 400 million dollars are currently being invested to build gated community projects and new projects are starting up all the time. North, South and West of Buenos Aires are all being experiencing growth in the number of private neighborhoods being built.
Investing in the construction of a gated community takes a lot of patience. Unlike building an apartment block, where most units are snapped up in presale, it will often take around ten years before gated community entrepreneurs see a return in profit. Units do sell, but they sell slowly. The show pace of sales means that if you’re looking to invest you’ll need to have the capital for the whole project to hand as you can’t rely on a quick profit.
The scale and size of constructing a development like this also adds risk into the equation. It’s the property equivalent of putting all your eggs in one basket and waiting for them to hatch. If something unforeseen goes wrong, for example, then you’ll lose the whole batch. However, for the big players in the property world this isn’t too much of a problem.
The Pestana Buenos Aires Golf Hotel and Residences in Bella Vista is one of the ‘big player’ investments. A massive $ 40 million dollars were invested to build the project’s 68 residences and 115 apartments. The homes occupy a total of 10,000 metres squared and prices start at around $ 233,000 US dollars. The apartments are obviously cheaper and go for upwards of $ 100,000. The development also boasts a hotel complex with a 120 room capacity and, of course, an 18 hole golf course. The Pestana Buenos Aires Golf Hotel and Residences offers a clever mixture of community feel, leisure amenities and tourism.
Investors are pouring money into Buenos Aires gated comunities, feeling sure that it’s a sound investment. Lest we forget that this is a relatively new phenomenon that has not been test run before. Who knows how popular living in Buenos Aires gated comunity will be in 10 years time? They may go out of fashion and lose their value. Another event that looms ominously in the near future is the presidential elections in November. With certain political and economic instability ahead many investors and buyers are worrying how the gated community market will weather the possible storm. Plus on top of this construction costs are steeply rising making the idea of building their own home in a seem less appealing.
Whatever the future for Buenos Aires gated comunities, the fact that so many developers are focusing their energies in this sector is a good sign. One thing is certain; the combination of the gated community set up with international hotel resorts built-in is something Argentina is going to be seeing much more of.
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