Of the approximately 16,000 apartments for sale in the city of Buenos Aires, 32% are listed at US$100,000 or less. But we know that a US$100,000 mortgage does not equate to a US$100,000 budget: depending on the percentage financed by the bank, the total purchase price rises to about US$125,000 or about US$143,000.
This is evident from a MapComercial survey of listings published in the City of Buenos Aires (CABA), with mortgage loans once again being offered by banks.
From the loan to the actual budget
Architect and public auctioneer Pablo Abbatángelo, of the Colegio Inmobiliario Porteño, sums it up this way: if the bank finances 80% of the value, a loan of US$100,000 allows you to aim for a property worth US$125,000. If it covers 70%, the upper limit reaches about US$143,000.
The difference is covered by the buyer, who needs savings to cover the unfunded portion, closing costs, and loan fees. Furthermore, the bank bases its decision on its own appraisal, which does not always match the advertised price.
What’s below US$100,000
Among the apartments listed up to that price, the survey found:
- 2,025 studio apartments
- 1,715 two-room apartments
- 1,056 three-room apartments
- Only 216 four-room apartments
38% of the two-room units listed fall within that price cap. The median floor area of these units is 40 m2, and their average age is around 40 years. Their median price per square meter is US$1,872, compared to US$3,208 for those priced above US$100,000.
How many square meters are purchased in each neighborhood?
The study compared the median price per square meter for used two-room apartments, excluding units under construction. With US$100,000, the theoretical calculation is:
- Constitución: US$1,517 per m², about 66 m²
- La Boca: US$1,593, about 63 m²
- Parque Patricios: US$1,757, approximately 57 m²
- Almagro: US$2,698, about 37 m²
- Caballito: US$3,196, about 31 m²
- Belgrano: US$3,844, about 26 m²
- Palermo: US$4,000, about 25 m²
- Núñez: US$4,024, about 25 m²
- Puerto Madero: US$6,226, about 16 m²
The price gap reaches four times between Constitución and Puerto Madero. However, the two-room units actually listed for up to US$100,000 are similar in size in both expensive and affordable neighborhoods: about 40 m² in Constitución and 38 m² in Palermo. What varies is the price per m² and the age of the property. In the more affordable areas, the median age is 47 years, and the price per square meter is US$1,632. In Palermo, Núñez, and Belgrano, the few units that fall within this price range cost US$2,344 per square meter.
Where to look
The report groups the areas with the most opportunities:
- Constitución, San Nicolás, Monserrat, and Balvanera: good connectivity and transportation, with buildings about 50 years old.
- Floresta, Boedo, and Parque Patricios: between 50 and 70 two-room apartments priced up to US$100,000 per neighborhood, which allows for comparison.
- Villa Santa Rita, Mataderos, and Villa Luro: newer buildings, between 20 and 30 years old, with limited public transportation.
For those in need of credit, another factor comes into play: Almagro leads in listings marked as eligible for credit, with two out of every three. San Cristóbal and Barracas follow, with six out of every ten.
