In Buenos Aires, where prices for luxury apartments are down 20% to 25% from a year ago, foreign cash buyers are seeking bargains. property for sale in qatar
However, there is a catch. According to the Wall Street Journal, Argentina's wildly fluctuating currency and new monetary constraints make it difficult to close deals. Last year, Argentine President Cristina Kirchner imposed restrictions on access to US dollars and other foreign currencies in an attempt to stem the outflow of money.
As a result, international buyers are hesitant to wire dollars into Argentina because it is nearly impossible to convert back to dollars at the official rate. Buyers are mainly searching for sellers with an international bank account, rather than the new facilities, according to the Wall Street Journal.
According to the article, the currency situation has "spooked" some foreigners in Argentina. Foreign homeowners account for 90% of homes reported for sale by estate agent Pericles Economides, whereas Argentinians are eager to buy to turn their pesos into a more secure asset.
International buyers who are eager and able to handle currency problems, on the other hand, find that their cash gives them market strength.
According to the Wall Street Journal, apartments in Recoleta, the neighborhood that earned Buenos Aires the nickname "Paris of South America," are selling for about $185 per square foot, down from nearly $240 in 2008.
One-bedroom apartments in Palermo, a common destination for homebuyers, are advertised for about $150,000 and sell for less, according to the newspaper.
Also buyers at the top of the market will find bargains. In 2008, a property that was advertised for $5.9 million was reduced to $3.3 million.
"The peso factor is a real concern," Alan Dickinson, a New York resident looking for a second home in the area, told the WSJ. "But I'm betting on the fact that things will normalize there."