This popular suburb of Buenos Aries, San Telmo, has prices sustained by tourism, its traditional appeal of Colonial buildings, and its laid-back lifestyle.
It is a traditional neighbourhood favoured by foreigners and has a leading role in the real estate market.
Tourism and a rediscovery of an improved appreciation for the area’s Colonial architecture – are the basis for a growth in demand for property.
Cobbled streets and Character Homes from the end of the 19th Century and the beginning of the 20th Century give the area a nostalgic, old-fashioned Buenos Aires feel. The historical area is protected by the APH (Área de Protección Histórica or Historical Area Protection) zoning rules, adding value to attractive older buildings.
The suburb itself is not that big (just 1.2 sq km ), and it is even smaller if you consider only the most popular parts where foreigners prefer to live temporarily or permanently.
The areas surrounding Plaza Dorrego and Parque Lezama are considered the most attractive. The ambience of the antique shops, restaurants, and bars, as well as street fairs and spectacles such as Tango, attracts thousands of tourists each weekend.
As a result, the highest real estate prices have been reached around this area’s landmarks and the unique buildings on nearby alleyways and streets.
Traditional, refurbished buildings and houses are the most sought after by locals, who are attracted by the area’s bohemian atmosphere, as well as by the growing wave of foreign buyers, who end up being captivated by this corner of Buenos Aires and buy real estate there so they can be part of it.
San Telmo offers opportunities for loft creation and the conversion of old buildings.
Apartment prices within this unique neighbourhood, located in the heart of Buenos Aires and near the city centre and Puerto Madero, vary according to their functionality, style, exact location, quality and general building maintenance.
They range from between USD1800 to USD2500 per sq m for used units. For exceptional properties, the values may climb up to around USD2800.
The tourism boom—as well as the large number of universities located in the neighbouring area (such as UADE, Kennedy University, the University of Buenos Aires’ Engineering Faculty, Austral University, and the Catholic University in Puerto Madero)—is the reason why rental properties in San Telmo are so keenly sought after.
Foreign tourists, students from abroad, and those from the country’s interior are in strong demand for furnished property rentals. The rent for temporary apartments is between USD200 and USD350 per month.
The temporary rental phenomenon is leading to the emergence of some specialised new apartment hotel developments directed to specific market segments. These properties are an excellent example of this.
Undoubtedly, San Telmo has become one of the places chosen by foreign people when they consider adding real estate in Argentina to their investment portfolios, attracted by its centrality within the city and its special Tango, arty and bohemian spirit.
In conclusion, the combination of an excellent location, the place’s special personality and likely future restrictions on real estate being offered (because of protection of the area’s heritage), have led to a re-assessment of the property value in San Telmo.
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