Headline:
The Rising Demand for PHs in Buenos Aires: More Space, Less Expenses
Subheadline:
PHs combine the best of houses and apartments, offering ample spaces, patios, and lower costs in a high-demand market.
Article:
Buenos Aires, Argentina – The property horizontal (PH) trend is sweeping through the Argentine capital, driven by the allure of spacious living, lower expenses, and a growing appreciation for outdoor spaces. These dual-natured properties, blending elements of houses and apartments, cater to families seeking the comforts of a home while enjoying the perks of urban life.
The PH Advantage
PHs, or "horizontal properties," provide a range of advantages over traditional apartments. They typically offer more square footage, private parking spots, and the coveted outdoor areas, including patios or terraces equipped with barbecue grills. These features are especially attractive to young professionals and families seeking the flexibility and living experiences that vertical housing cannot always provide.
The increasing demand for PHs has not only led to a surge in purchases but also in the rental market. As the law governing rental agreements in Argentina was recently reformed, the number of PHs available for lease has grown significantly since the end of 2023. Current listings range from affordable options in working-class neighborhoods like Flores, Pompeya, and Lugano to luxurious properties in exclusive areas such as Palermo, Recoleta, and Belgrano.
The Appeal and Challenges
Agustina Alderete, a real estate agent from Aldea Urbana Negocios Inmobiliarios, highlights the growing interest in PHs: "Currently, PHs are particularly sought after due to the continually increasing costs of building maintenance fees, which are high and climbing from month to month."
Despite their growing popularity, PHs also come with unique challenges. Many older PHs require significant renovations to update their condition and bring them up to modern living standards. Furthermore, the market for PHs is limited, as few new constructions enter the market in favor of profitable high-rise buildings.
Patricia Jedvabnik, from Abiti Proyectos Inmobiliarios, notes that while "the renovation costs associated with older PHs may be high, they often do not exceed the fixed expenses incurred in buildings. Moreover, PHs offer greater privacy and comfort compared to apartments."
The Role of Location and Availability
Various neighborhoods in Buenos Aires are driving the PH craze, with Villa Urquiza, Caballito, Villa Crespo, and Palermo leading the way. Villa Urquiza, particularly, attracts buyers with its well-connected location, featuring the extended Line D of the subway and proximity to the Avenue General Paz. PHs in this area start at around USD 65,000 for 40-square-meter units.
Meanwhile, Caballito appeals to buyers with its central location, accessibility to main roads, and picturesque avenues like Rivadavia and Pedro Goyena. A 40-square-meter PH here typically begins at USD 65,000, making it an attractive option for those seeking affordability without compromising on accessibility.
Villa Crespo, benefiting from its proximity to the trendy and upscale Palermo neighborhood, offers an enticing opportunity for buyers seeking spacious PHs at competitive prices. Properties in this area, featuring ample terraces and up to eight bedrooms, can exceed USD 1 million, thanks to their prime locations and extensive floor plans.
Pros and Cons of PHs
| Ventajas | Desventajas |
|---|---|
| Accessible pricing points | Maintentance costs (lower than building fees) |
| Outdoor spaces, often including patios or terraces | Age and renovation costs for older PHs |
| Potential to add further levels or rooms | Limited market supply |
| Lower or no condo fees, reducing fixed costs | Potential layout inefficiencies |
The Future of PHs
With the return of mortgage loans and a stable real estate market, PHs continue to be an intriguing investment opportunity. Despite the challenges they pose, they remain an attractive option for homebuyers and renters alike, thanks to their combination of house-like living and apartment-like convenience.
"Irrespective of the obstacles posed by the limited availability and the tendency towards high-rise construction, PHs maintain their relevance in the Buenos Aires real estate market," concludes Irina Zommer, CEO of Zommer Negocios Inmobiliarios. "Properties with ample natural light, private patios or terraces, and few units per lot ensure greater comfort for both owners and tenants."
As city dwellers continue to seek out spacious and inviting living spaces, PHs are poised to remain at the forefront of the Buenos Aires real estate scene, offering a unique blend of urban and suburban living experiences.
