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Developers Shift From Palermo and Recoleta to Second‑Tier Barrios and GBA Fringe

Developers are moving because construction costs have risen faster than sale prices, squeezing margins.

Overview

  • Thursday's coverage shows builders are targeting central second‑tier barrios such as Almagro, Boedo and San Telmo plus peripheral GBA corridors rather than the high‑cost areas of Palermo, Recoleta and Belgrano.
  • Declared new construction volume has plunged from about 2.5 million m2 to roughly 700,000 m2, signaling a major slowdown in project starts driven by tighter margins.
  • Buyer demand now favors monoambientes and two‑room apartments with shared amenities, and San Telmo stands out with entry prices near US$1,500–2,200 per m2 and short‑term rental gross returns around 8%–14%.
  • Limited access to traditional mortgages has pushed developers to offer direct financing with fixed rates, peso or dollar installments and multi‑year terms to close sales.
  • Fundación Tejido Urbano reports the RMBA added about 135 km2 of urbanized land since 2018 and warns that this outward growth concentrates supply in corridors like Berazategui, Ezeiza, Luján and La Plata and may strain infrastructure, services and increase car dependence.