Recent economic fluctuations, including climbing interest rates and inflation, have driven up the cost of home-buying loans in the Latin American housing market.
This increase affects service accessibility and boosts prices in premier neighborhoods.
The fall of Latin American currencies, like the 49.40% fall of the Argentine peso this year, seems to be affecting home prices.
With significant economies, Argentina, Mexico, and Brazil have the costliest neighborhoods. Real estate platforms Properati, Lamudi, and Trovit report on these markets.
They focused on five countries out of the thirteen studied, pinpointing the ten most expensive areas.
The platforms calculated the average price for luxury homes per square meter in 26 affluent areas. They converted these figures to US dollars for the ranking.
The latest report on expensive neighborhoods includes more countries than previous years, showing a broader scope.
The authors underline two factors for this analysis: the sharp financial divides in Latin America and the strong property market that draws investors despite tough economic times.
Allianz observed a 2.7% drop in global household wealth in 2022, the steepest since 2008, with financial assets losing value.
Chile leads the region in financial assets per person, with Brazil, Mexico, Colombia, Peru, and Argentina following.
This wealth encompasses funds in hand, in banks, due from insurance and pensions, and in stocks or investment funds.
Buenos Aires On Top
Habitat for Humanity indicates that over half of those lacking decent housing globally are in unstable informal settlements.
Rapid city growth without risk-ready urban planning is part of the cause.
In this region, most people, about 82%, are city dwellers. Nearly half face housing issues, mostly concerning quality, notes Ernesto Castro from Habitat for Humanity.
At the top of the list for pricey neighborhoods is Puerto Madero in Buenos Aires, where medium-sized apartments go for $5,485 per square meter.
Following are Del Valle in Monterrey at $4,071, Ipanema in Rio at $4,008, Vitacura in Santiago at $3,733, and Carrasco in Montevideo at $3,705.
The list concludes with Vila Nova Conceição in Sao Paulo at $3,393, Tablada Park in Córdoba at $2,845, Savassi in Belo Horizonte at $2,797, Puerta de Hierro in Guadalajara at $2,655, and Bosques de las Lomas in Mexico City at $2,627.
Colombian High-End Locales
The study also shows a surge in Colombian high-end locales, with El Poblado in Medellín rising by 43%, while Chicó in Bogotá and El Prado in Barranquilla saw over a 24% hike.
Increases were also evident in Montevideo, Monterrey, Arequipa, and Guayaquil, with gains between 11% and 23%.
Some districts like La Carolina in Quito and Las Malvinas in Rosario noted a decrease in prices compared to last year, with no area falling more than 8%.
This decreasing trend was seen in other affluent areas, including Vila Nova Conceição, Ipanema, Puerto Madero, Bosques de las Lomas, and Puerta de Hierro.