Nearshore Americas
Affordable property Latin America

Four Latin American Cities Offering Affordable Real Estate

While major Latin American capitals see property prices soar, a few hidden gems offer surprising affordability. Cities like Rosario, Cordoba, Panama City and Quito stand out as wallet-friendly alternatives, blending charm with lower living costs.

According to a joint study by Argentina’s Torcuato Di Tella University and Zonaprop, Quito leads the affordability race at just $1,215 per square meter. Córdoba ($1,528), Rosario ($1,547), and Panama City ($1,761) follow closely, offering significant savings compared to the likes of Montevideo ($3,454) and Mexico City ($2,706), where prices are more than double.

Meanwhile, some big cities are feeling the heat of a cooling market. Santiago de Chile saw property prices tumble 10.6% in late 2024, with Monterrey and Guadalajara experiencing 9.7% and 9.6% drops.

Panama’s affordability stems from an oversupply of properties and relaxed financial regulations, keeping prices in check. Quito, on the other hand, faces hurdles like limited civic amenities and increasing environmental risks, which stall property value growth.

In Argentina, the story is unique. Soaring inflation has slashed the purchasing power of locals, pushing them toward second-hand homes. But rising crime in cities like Córdoba is giving investors pause, casting a shadow over an otherwise attractive market.

For savvy buyers, these cities offer a rare opportunity to combine affordability with potential—if you can navigate the challenges.

Daniel Cabrera, CEO at at Fire Damage House Buyer, is Uruguayan and travels extensively across the region.

Daniel Cabrera, Founder and CEO at Fire Damage House Buyer, expects property prices to move up in Panama City.

“Currently, the expansion of the Panama Metro and improvements in road infrastructure are taking place. These projects will continue to make suburban living more accessible and might boost property values in such areas.”

New tax incentives for foreign investors will rejuvenate the residential real estate market in Panama City, he added, pointing to the 20% increase in the purchase of homes by foreigners during the first half of 2023.

Panama’s reputation as a safe haven has not only bolstered its bank deposits but also fueled its property market.

For over a decade, foreign investors have built high-end apartments without concern for rising prices. This unchecked development has led to a glut of empty apartments. However, vacancy rates may not stay high for long, says Cabrera.

“The high-end condo vacancy rate is projected to drop to 5% by 2025, as surplus inventory is gradually absorbed.”

Rosario: A Shifting Landscape

President Javier Milei’s regulatory changes are reshaping Argentina’s real estate market. Soon after assuming office, he repealed the rent control law, which had previously contributed to housing shortages in smaller cities like Rosario.

In response, property developers ramped up construction, flooding the market with new apartments. This oversupply has driven down both rentals and property prices.

Changes in rental laws have also heightened competition among landlords, forcing them to lower rents to attract tenants.

Meanwhile, rising inflation has further strained the purchasing power of potential buyers. Gang violence adds salt to the wound. Rosario’s homicide rate skyrocketed to a staggering 22 deaths per 100,000 inhabitants, five times Argentina’s national average. There were 259 homicides in the city in the 12 months preceding June 2024, according to data from the Public Security Observatory of Santa Fe.

Córdoba: A Parallel Tale

Córdoba shares a similar story with Rosario. There is a limited demand from international buyers and local buyers are already constrained by financing challenges.

Adding to the city’s woes is a rise in crime rates, says Cabrera, who is in fact a Uruguayan. “Crimes such as petty thefts, pickpocketing, and burglaries are particularly prevalent,” he noted.

This crime wave is likely to deter buyers and investors, further reducing demand and dragging down property prices. “Besides, a higher crime rate can also lead to existing residents moving out to safer areas, increasing the supply of property and further depressing prices,” Cabrera added.

Quito: Lack of Buyers

In Quito, capital city of Ecuador, nearly 75% of property buyers prioritize affordability over quality and location, according to local media reports. Consequently, sellers often face prolonged delays in finalizing deals, with some waiting up to 34 months, —44% longer than pre-pandemic periods.

While some clients articulate their requirements before construction begins, many are unable to secure bank loans, leaving projects abandoned mid-way.

Contrary to an oversupply issue, Quito faces a scarcity of potential buyers. Exacerbating the situation are inadequate civic infrastructure, frequent power outages, and chronic environmental challenges, including severe droughts.

These issues have culminated in an electricity shortage, further straining the city’s real estate market.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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