Argentina Real Estate

Argentina or the Argentine Republic in South America is highly agricultural nation with a vigorous export industry. The country boasts of its rich natural resources, impressive literacy rate and decreasing rate of poverty. Argentina lies between the Atlantic Ocean and the Andes mountain range. Bordering it in the north is Paraguay and Bolivia, while Brazil and Uruguay margins the south, and Chile the west.

Named from the Latin word meaning "silver", Argentina was a Spanish colony since the early sixteenth century and gained its independence in 1816. It is comprised of twentythree provinces and of a capital city of Buenos Aires. The country's location subjects it to a varied climate, from a moderate to subtropical conditions, and with notably and dry summers.

In 1983, Argentina re-established democracy, and since then, the government's effort in advancing the country's economy has been more visible. This effort began with the creation of government-owned corporations and the passing of reforms on commodity prices, especially of imports. The nation banked on its copious natural resources and agricultural landscape while supporting major industries and GDP components such as their beverage, food processing, motor vehicle and chemical industries. Its economy however is among the least free markets in the world, with the high prices of goods and suspension of debt servicing. Business ventures in the country enjoy about seventy percent freedom as opening and closing enterprises necessitates tedious processes. Investment proposals are carefully evaluated to ensure the continuous protection and preservation of the environment.

Argentina is faces with problems in employment, property rights and corruption. The trade conditions of both domestic and foreign investors are inhibited by troublesome custom procedures that are tainted with corruption. Most government policies are designed to protect local entrepreneurs and control imports with quotas, strict sanitation criteria and price controls. Much of the economic difficulties arise from the impending internal inefficiencies such that of the country's judiciary body and its obstructed due process. This instability, among others, discourages foreign investments in the commercial arena, including its real estate industry.

Property rights freedom is significantly low in Argentina. Because of its widespread corruption that has permeated its guarded executive and legislative branches, investors opt for international mediation in cases of property rights violation.

In spite of these difficulties, Argentina continues to subsist with increased foreign investments since 2001. Its economy's poor performance in 2002 impressively soared in the subsequent years. The country registered a five percent growth in their GDP in 2007. Along Argentina's improving economy is the striving real estate market in the cities of Buenos Aires, Santiago del Ester and Tierra del Fuego. The boost of this pro-landlord rental market has been instrumental in the recovery of the country's economy in the twenty-first century. Real estate in the country is substantiated with a low cost of living and inexpensive equivalence of peso, attracting foreign investors. Other than properties in various metropolis areas, real estate areas equally patronized are vast farms for growing agricultural products, and raising livestock and poultry. These properties are considered freehold as most of the real estate firms offer lease of varied terms. Furthermore, foreigners are welcomed to purchase properties in Argentina upon acquiring a tax identification number.

Residential areas in Argentina are considerably expensive. In Buenos Aires, prices of lavish lofts have been at a rise, selling up to $470,000 per unit of about 250 square meters. The real estate industry enjoys a high profit especially from luxury units and an affordable transaction rate. Prices of residential rents have been reasonably prices, fueling an increasing market. On the other hand, the government gets a high tax on rental revenues.