The four zones of Buenos Aires on which luxury building developers are betting

Despite a challenging market marked by rising construction costs and economic uncertainty, developers in Buenos Aires are concentrating their efforts on luxury building projects in four key city zones. These projects aim to maintain demand by offering unique value propositions in the upscale real estate segment.

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I believe the cost is what it is and, far from falling soon, it will rise.

Industry leaders at the 11th Real Estate Summit expressed concerns about the escalating cost of construction. Alejandro Furst, CEO of Landmark Developments, stated bluntly, "I believe the cost is what it is and, far from falling soon, it will rise." He noted that demand has not yet adjusted to these new costs, creating a complex environment for developers.

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We are not focused on construction costs falling, but rather on finding ways to offer the segment and the market projects that are different, that are unique, unrepeatable.

Marcos Juejati, co-founder of NorthBaires, agreed that costs are high but stressed a shift in focus towards multiplying value through distinctive and unrepeatable projects. Ignacio Trabucchi of ATV Arquitectos echoed this sentiment, emphasizing the importance of building "urban value" and offering a different living experience. He suggested that true luxury is evolving from the superficial to the experiential, focusing on what residents feel.

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It is essential to build urban value; I think that precisely the projects that will transcend are those that offer a different living experience and there is still a lot of space to build value with differential products.

Ioram Amsel, co-director of ABV, attributed the rising costs partly to the depreciation of the currency against the dollar and global inflation. He stressed that absolute cost analysis is difficult under these conditions. The developers are looking beyond the short term, aiming to create lasting urban and housing solutions in a market that is becoming more demanding and sophisticated, where luxury is increasingly defined by sensitivity and experience rather than mere appearance.

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The currency for which we value everything has depreciated internationally; the dollar is not the same, so I cannot analyze the cost in absolute values when there is global inflationary dynamics.