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.
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 surprisingly cheap with 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.
Mendoza’s San Rafael was settled by Italian and Swiss pioneers. It is the home of Valentin Bianchi, one of Argentina’s largest wine producers, which exports to the United States and Europe. Wine enthusiasts are drawn to its sparkling wines and pleasant strolls through the landscaped property. There is land that will increase in value many-fold within a few years.
For those who simply want to benefit from the uplift in the values of the land as Tourism expands you can invest in land that is bought in large quantities at low prices and identified for future uses -Building, Tourism etc. The land offers high profits, both for experienced and smaller investors. For further information on this and other innovative projects:
In summary, Argentina has a booming economy that presents a wealth of opportunities for the real estate investor, both hi 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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