Some local communities continue to top the list of the most expensive in the area, despite price declines in the real estate market caused by a halt in sales.

Puerto Madero, with an average price of US$5,921 (m2), continues to be the most expensive area in Latin America despite recent declines in local real estate prices. In the past five years, this region of Buenos Aires has been comfortably at the top of a list of the most expensive districts in Latin America.

Ipanema in Rio de Janeiro and Vitacura in Santiago round out the top three in that ranking, respectively, with average values of $4,028 and $3,570 per square meter, respectively. The next two were Vila Nova Conceiço (Sao Paulo, Brazil), with US$3,404, and Del Valle (Monterrey Metropolitan Area), with US$3,566.

According to the ranking conducted by the real estate search portals, Properati and Trovit, in which the price of the property is calculated and compared, the “top 10” is closed by neighborhoods located in Montevideo, Guadalajara, Mexico City, Rosario, and Panama City. m2 for sale in the most upscale areas of 20 cities in the region.

According to the price evolution, the average price per square meter in dollars was lower in 15 of the 20 communities on the list than it was in 2021.

The economies that experience annual devaluations of their own currencies include Argentina (52%), Colombia (28%) and Chile (14%). As a result, the chosen communities in these three nations show drops in the price of real estate in dollars. According to the paper, “this upholds the macroeconomic reasoning that purchasing power is lost when the local currency is depreciated.”

According to the price monitoring done by the University of San Andres and Mercado Libre, the decline in the sale price in dollars per m2 of homes in the AMBA is 9.0%, and that of apartments is 8.1%, depending on the interannual changes (for example, with respect to November 2021).

The currencies of the other nations increased. Considerations such as the rise in construction costs, interest rates, and the geopolitical situation in 2022 are necessary to comprehend the price fluctuation. In the CDMX neighborhood of Bosques de Las Lomas, the price per square meter has increased by 22%. Only Ipanema in Brazil and Samborondón in Ecuador saw growth of 5% among the remaining areas.

According to those in charge of the research, the list is merely a brief illustration of how the economies of Latin America have behaved.

The most expensive districts in Argentina stand out for their high value, according to the rating of these portals that are a part of the Lifull Connect network of real estate portals. The Malvinas, in Rosario, average US$ 2,250 per square meter (ninth in the ranking), while Country Jockey Club, in Cordoba, reaches US$ 1,900 per m2, in addition to the US$5,921 from Puerto Madero.

Rosario’s Las Malvinas neighborhood, also called the Refinery and bordering the Paraná River, changed from being a working-class region to a location for upscale homes. Country Jockey Club, which is south of Cordoba, is notable for its greenery.

Regarding pricing changes, amid a climate of weak sales, the price per square meter in dollars declined 1% in Puerto Madero, 10% in Las Malvinas, and 13% in Country Jockey Club from the previous year. However, at that time, all Argentine neighborhoods saw an increase in the cost per square meter in Argentine pesos.

The depreciation of the peso in relation to the dollar is to blame for this. Home prices are less expensive in foreign currencies even when they increase locally (by more than 30%), as they do not exceed the 52% gain in the dollar over the past year.

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