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Building a 'Cheap' 60-Square-Meter House in Buenos Aires Now Costs Over $63,000
🇦🇷 Argentina /Economy & Trade

Building a 'Cheap' 60-Square-Meter House in Buenos Aires Now Costs Over $63,000

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • The cost of construction in Buenos Aires continues to rise, with the price per square meter increasing by 3.1% in April to $1,463,247 pesos.
  • In dollar terms, construction costs rose by approximately 6% in a month due to currency exchange rate fluctuations.
  • Building a basic 60-square-meter house is estimated to cost around $63,360, excluding land value and developer's profit.

The construction sector in Buenos Aires faces persistent uncertainty, with rising costs impacting developers and individuals looking to build. The price per square meter has become a critical indicator, influencing real estate dynamics and construction decisions.

In pesos, the increase in construction cost was 3.1% in April compared to the previous month, according to the Construction Cost Index of the city of Buenos Aires, and the cost of the square meter reached $1,463,247 (+ VAT), while the dollar blue was moving around $1,385 in that month.

— Index of the Construction Cost of the city of Buenos AiresReporting the official construction cost increase in April.

In April, the cost of construction in pesos saw a 3.1% increase compared to the previous month, reaching $1,463,247 pesos per square meter (including VAT). This rise, coupled with the dollar blue trading around $1,385, resulted in a nearly 6% increase in construction costs when measured in U.S. dollars, despite a smaller increase in peso terms. This divergence highlights the significant impact of currency exchange rates on building expenses.

This implies that construction became about 6% more expensive in dollars in one month, even though the increase in pesos was smaller.

— Not specifiedExplaining the impact of currency fluctuations on construction costs.

The surge in costs is attributed to increases in materials (1.5%), labor (5.2%), and general expenses (2.4%). However, the official cost index from the city of Buenos Aires does not include crucial elements such as land value, taxes, professional fees, marketing, and developer profit margins. These additional factors mean the actual cost of a project is considerably higher.

Developers estimate that the most economical final cost per square meter starts at US$1435 + VAT (more than $2,000,000).

— Real estate developersProviding an estimate for the minimum cost per square meter.

Industry professionals estimate that the most economical final cost per square meter starts at $1,435 plus VAT, exceeding $2,000,000 pesos. For higher-end homes with premium finishes, the cost can reach $4,000 per square meter plus VAT, nearly $6,000,000 pesos. Consequently, constructing a basic 60-square-meter house is estimated to cost around $63,360, with the final price potentially reaching $86,100 once developer-added expenses are included.

Constructing a 60 m² economical house costs around US$63,360.

— Not specifiedEstimating the cost for a small, basic house.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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