The real estate market in Argentina is BOOMING
2006 was another strong year for appreciation in virtually every part of Argentina. In Buenos Aires, prices have risen over 20% in areas such as San Telmo, Palermo, Barracas, and Recoleta. Development has also continued at a rapid pace although all of the new housing is beginning to put constraints on the city infrastructure. Utilities such as water and electricity need time to catch up with the rapid growth. In November, the city government put a moratorium on new development in certain areas just for this reason. Regardless, investment continues. Both domestic and foreign investment is flowing. On December 26th, Merrill Lynch announced that it had partnered with the Pegasus Group in raising a U$S 200M fund that would focus only on commercial, residential, and tourism-based real estate investment:
http://www.bloomberg.com/apps/news?pid=20601086&sid=aqeWpsy79TcY.
Merrill is not alone, it appears as though investment in Argentina is becoming trendy with the
institutional investment community. Early reports are predicting that this trend will continue through 2007. Inflation is being controlled, and exports are surging.
2006 was another strong year for appreciation in virtually every part of Argentina. In Buenos Aires, prices have risen over 20% in areas such as San Telmo, Palermo, Barracas, and Recoleta. Development has also continued at a rapid pace although all of the new housing is beginning to put constraints on the city infrastructure. Utilities such as water and electricity need time to catch up with the rapid growth. In November, the city government put a moratorium on new development in certain areas just for this reason. Regardless, investment continues. Both domestic and foreign investment is flowing. On December 26th, Merrill Lynch announced that it had partnered with the Pegasus Group in raising a U$S 200M fund that would focus only on commercial, residential, and tourism-based real estate investment:
http://www.bloomberg.com/apps/news?pid=20601086&sid=aqeWpsy79TcY.
Merrill is not alone, it appears as though investment in Argentina is becoming trendy with the
institutional investment community. Early reports are predicting that this trend will continue through 2007. Inflation is being controlled, and exports are surging.
posted by britownsend | 5:35 AM
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