Many of Latin America’s most expensive neighborhoods are experiencing rising prices per square meter, representing some recovery from the depressed real estate prices seen in 2020 due to the global pandemic.
According to a study by Properati – a real estate platform active in Argentina, Colombia, Ecuador, Peru, and Uruguay – of the 12 “exclusive” neighborhoods that appeared on both the 2020 and 2021 lists of most expensive neighborhoods in Latin America, eight saw prices rise last year.
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Only Ipanema (Rio de Janeiro, Brazil), El Prado (Barranquilla, Colombia), La Carolina (Quito, Ecuador) and Samborondón (Guayaquil, Ecuador) registered declines in prices per square meter, with Samborondón being the only neighborhood to register a decline of more than 5%.
The greatest increases, meanwhile, were seen in Pance (Cali, Colombia) and Vitacura (Santiago de Chile), which saw prices rise 24% and 20% respectively.
Carrasco (Montevideo, Uruguay) and Chico (Bogota, Colombia) each saw prices rise by more than 10%, as did Bosques de Las Lomas (Mexico City). Puerto Madero, in Buenos Aires, remained the most expensive neighborhood in the region by a significant margin.
SEE ALSO: Learn How To Buy Property in Santiago de Chile
The study of the most expensive neighborhoods in Latin America includes a total of 16 “exclusive” neighborhoods and separately lists the 16 most expensive “middle class” neighborhoods.
According to the study’s authors, it is based on an analysis of 35,000 properties in different cities around the region, with those gathered in countries where Properati does not do business – Brazil, Chile, and Mexico – obtained from external sources but verified internally.
Most expensive neighborhoods in Latin America: middle class areas fare worse
In some countries, such as Chile and Colombia, there has been a steady and sustained growth in housing prices, especially in major cities. This is due to the increasing demand for housing, both from the local population and foreign investors. In addition, housing supply has not always been able to keep pace with demand, which has led to an increase in prices.
The most significant declines were seen in Argentina, where the neighborhoods of Caballito (Buenos Aires) and General Artigas (Cordoba) saw prices fall 11%, while El Salado (Cuenca, Ecuador) and Jesús María (Lima, Peru) saw 7% declines.
The most significant increase among middle class neighborhoods was seen in Ñuñoa (Santiago de Chile), where prices increased 28%. La Flora (Cali, Colombia) and San Jeronimo Lidice (Mexico City), meanwhile, both saw prices rise by 24%.
Several Latin American countries have experienced a decline in housing prices in recent years. Some of them are:
- Argentina: The economic crisis and recession affecting the country have caused a decrease in housing prices in general.
- Brazil: The Brazilian real estate market has also experienced a reduction in housing prices due to the economic recession that the country has suffered in recent years.
- Colombia: Although there has been an increase in housing construction in recent years, this has led to a saturation in the market and a decline in housing prices in some areas.
- Chile: In some sectors of Chile, especially in Santiago, there has been a decline in housing prices due to an oversupply of properties.
Biz Latin Hub can assist you buying property in Latin America
At Biz Latin Hub, we assist corporations and investors doing business in Latin America and the Caribbean, with offices staffed by local teams of professionals in 15 countries as well as Puerto Rico.
We provide integrated packages of market entry and back office services tailored to individual needs, and our portfolio includes accounting & taxation, company formation, corporate legal services, hiring & PEO, and visa processing.
We also assist with property purchases, so if you are interested in investing in one of the most expensive neighborhoods in Latin America, and we have an office in that city, we can assist you. We can also help you apply for residency through real estate investment in markets where that is allowed.
Contact us today to find out more about how we can help you.
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