Russian real estate transactions in Argentina have exploded: what are they looking for and why are they investing in the country

In an unprecedented event in the last 5 months, several investors from different parts of Russia, especially from Moscow, have bought houses in apartments that are currently in a well or temporarily rented in different buildings in the city of Buenos Areas.

Many of the investors opt for our country because they understand that it is easier to access dual nationality. Many fear that the war with Ukraine will be prolonged and spread to other neighboring territories and how it is people with strong economies who decide to allocate them in the brick to protect them. In addition, they have been well advised before doing so and they know that the Argentine real estate market offers accommodation in very good properties but at a price much lower than that of other major capitals or metropolises in the world.

In recent weeks, more than 100 operations have been carried out in Buenos Aires by young couples or pregnant single mothers, generating a very original demand.

Daniel Brynreal estate expert and author of the Moniteur de l’Immobilier, pointed out to GlobeLiveMedia that “Russians favor studios, two- and three-bedroom apartments in the neighborhoods of Palermo, Barrio Norte, Belgrano and Recoleta. They are not encouraged to settle in other areas of the city for reasons of security.

In the case of temporary rentals, they make deals for 300 USD to 700 USD per month. Usually between 3 and 6 months.

“There are three profiles of Russian tenants and landlords. Some come from the lower class, others with good purchasing power, and finally the millionaires, who look to Puerto Madero for their main requirement. There, the rents are from 1000 USD and above, so they can afford it. Many pay in dollars from banknotes and others from their accounts (also due to the Russian government they have strong restrictions to transfer from one country to another) they transfer money to crypto- currencies and here they are exchanging them for dollars so they can do the deals,” Bryn added.

And although language is a barrier to dealing with real estate agents, many use Telegram to carry out negotiations. They create discussion groups and exchange information about apartments offered for temporary rental or sale. “Before they take a step or move a dollar, they internalize it well,” the market says.

Most foreigners who bet on the bricks are familiar with the local real estate market and are even familiar with its depreciation in real estate prices that has occurred from 2018 to date.

Eugene Trochkovbroker from Gustavo De Simone, underlined GlobeLiveMedia that “we advise all Russians who contact us and tell us how the context is in Argentina and what opportunities there are currently. Some decide to buy to invest and others, after getting to know the country, decide to buy to live. They prefer to leverage their capital in properties instead of having stagnant dollars. They bought well, although they also used and brand new”.

A large proportion of Russians arriving in the country first rent temporarily until they later decide to become owners. They are looking for apartments between 70,000 USD and 140,000 USD, in fact they have carried out operations in houses currently under construction in Núñez, Monserrat or Villa Ortúzar.

“We also receive requests for land investment, the last operation we did was in Pinamar for example, but they also consult private neighborhoods located in the southern and northern areas of Greater Buenos Aires,” Trochkov said.

Some choose to take advantage of the financing of houses in the well and buy an apartment to live with two or three rooms in Palermo, Recoleta and Belgrano. Those who choose new or used must be in excellent condition so as not to invest in spare parts.

The first Russian clients invested before the start of the war, in November 2021.

And once the invasion of Ukraine began (in February 2022), according to Trochkov, “many sought to leave the conflict zone, see what was happening from the outside, and others preferred to work for foreign companies, to charge in dollars, and to settle in the Argentina. Here they are surprised to see how it is, they fall in love with the country and choose to buy a property to stay and live”.

Another version also states that many Russians buy or rent in Argentina because they have had problems traveling to other European countries since the start of the war with Ukraine.

And on the issue of pregnant women, experts say that they do it to receive Argentine citizenship, which requires being in the country for 3 years, with childbirth they speed up the process, that’s why they come to give birth in the country without worrying whether they do so in private or public health centers.

Trochkov concluded that “in recent days there have been consultations by departments to rent or buy up to 4 rooms. Something unusual.”

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