Buenos Aires Property Prices Surge 6.2% in Q2, Palermo Leads Recovery

Buenos Aires apartment prices rose 6.2% in the second quarter compared with the same period last year, the strongest annualised quarterly gain in three years, according to new data from the Colegio de Corredores Inmobiliarios. The average per-square-metre price hit USD 2,680, up from USD 2,525 in Q2 2025.

The rebound matters because it breaks a pattern of fits-and-starts growth since the 2023 devaluation. Buyers who sat on the sidelines through much of last year are now returning, particularly in dollar-linked transactions that dominate the formal market. The Q2 jump is roughly double the 3.1% year-on-year growth recorded in the first quarter of 2026.

Palermo and Recoleta pull the index up

Palermo Soho and Palermo Hollywood accounted for nearly a third of all closed transactions in Q2, with average prices reaching USD 3,150 per square metre in Soho and USD 3,080 in Hollywood. Recoleta followed at USD 3,020 per square metre, driven by interest in Belle Époque-era apartments near the Cementerio de la Recoleta. In both districts, 70% of deals were cash purchases in USD, according to the Colegio's monthly transaction tracker.

Belgrano R, a traditional family neighbourhood, saw more modest growth of 4.8% year-on-year, with average prices around USD 2,650 per square metre. Real estate agency Remax Argentina reported that two-bedroom units in the Barrio Chico area near Avenida Cabildo were the most sought-after, with a typical 70-metre apartment selling for USD 185,000-up from USD 176,000 in Q2 2025.

Villa Crespo continued its upward trajectory, with prices climbing 7.4% year-on-year to an average of USD 2,100 per square metre. Developers are betting on the corridor along Avenida Raúl Scalabrini Ortiz, where at least three new residential towers are slated for completion before year-end. The neighbourhood's proximity to Palermo and lower entry price point are drawing first-time buyers and investors alike.

Supply tightens as new listings lag demand

The number of active listings in Buenos Aires fell 8% in Q2 compared with the same period last year, according to the Colegio's internal database. Total inventory stood at roughly 34,000 units at the end of June, down from 37,000 in June 2025. The shortage is most acute in the USD 200,000-to-USD 350,000 bracket, where demand from middle-class buyers is highest.

New construction starts in the city dropped 12% year-on-year in the first half of 2026, partly due to rising input costs and bureaucratic delays in permit approvals at the Dirección General de Habilitaciones in the city’s Desarrollo Urbano secretariat. That means resale units are absorbing the bulk of demand, pushing prices higher.

For buyers, the window of relative affordability is narrowing. Mortgage lending remains embryonic-only about 1,200 mortgages were issued in the city in Q2, mostly through Banco de la Ciudad de Buenos Aires’s UVA-adjusted loans. Cash buyers are better positioned, but with prices climbing and inventory shrinking, even they face tougher negotiation leverage than a year ago. Sellers in Palermo and Recoleta are now holding firm on asking prices, according to brokers at Toribio Achával, a local real estate firm. Anyone shopping seriously should be ready to close within 30 days or risk losing the unit to a faster cash buyer.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.