Argentina Prime Destination For Real Estate Investments
As the real estate sector finally starts to see the light at the end of the tunnel, investors all over the globe are looking once again to real estate. The international crisis hit many people and businesses very hard, but as the worst of it has passed, companies, regions and countries are now looking ahead, figuring out how to best position themselves to come out on top.
For Argentina, this means repositioning itself as a prime destination for real estate investments. Promoting the export of real estate-related services is a key piece to this goal, which was begun at the Real Estate Market Exhibition held in October of 2009.
Currently, real estate business, including all its aspects, accounts for more than 14% of the Argentine GDP. It is the second largest sector in the country, and had managed to grow with a low dependency on credit, at least until the recent crisis. Construction alone now represents 3% of the GDP, up from 0.2% in 2003.
Property investment is relatively simple in terms of the legal system. Foreign investors enjoy nearly all the same benefits as locals, making it a favorable environment for investors. The housing sector has three major types of property owners, including agricultural investors, private citizens, and middle-class investors. The latter includes those with a few, high-quality properties for rent, and those with larger development companies.
The larger development companies are certainly not short of opportunities or need for development. Within the next 25 years, it is predicted that over 50% of Argentina’s population will be in Rosario, Buenos Aires and the Greater Buenos Aires (GBA) and La Plata — just 0.7% of the land mass. All these people certainly need places to live, and the area is hardly equipped, currently, to handle them all.
In fact, Capital Federal currently has 1,200,000 people traveling through to work on a daily basis, and there are 1,500,000 residents within the metropolitan area alone who do not have potable water. 7,500,000 do have potable water, however. 3,500,000 people have no sewage services, while 5,600,000 do. 2,000,000 homes are located in precarious settlements, and about 300,000 families, at least, are without any sort of home. All of these shortages provide great opportunity for investment and growth, and that’s just based on current numbers.
As of 2008, tourism has become the fourth largest sector in the economy, and as it continues to grow, so will tourism-related investments. Beyond simple vacations, hundreds of exhibitions and conferences are held annually, and tourism can expect a 5% growth rate annually. This means more facilities will need to be built, as well.
Many other services and important sectors are expected to continue to grow, and all sectors require infrastructure of some sort. As the economy stabilizes and grows, so will the need for investors and construction. Argentina is wise to promote these opportunities to the international community.
Go back to Argentina Real Estate News:
Buenos Aires Estate Haven
Investors are Looking for New Places to Build
BUENOS AIRES HABITAT a pioneer of the extended stay hotel-style apartment concept in Buenos Aires. Offers luxurious furnished apartments in Buenos Aires for temporary rent as an alternative to high-class hotels. Whether your visit is for a few days or a few months, for vacation or business trip, we will make your Buenos Aires experience memorable. All of our Buenos Aires apartments offer high-speed internet access, cable TV and housekeeping service.