Buenos Aires Housing Market Loses Mortgage Support

The Buenos Aires property market ended the first half of 2026 without a clear expansion. Sales in the capital remained close to their year-earlier level, dollar-denominated apartment asking prices increased by 1.6%, and registered mortgage-backed purchases fell by more than a third. In Buenos Aires Province, both total transactions and mortgage activity declined.

Argentina’s Market Review Requires Important Qualifications

A July review published by Housing Market Ads describes Argentina’s housing sector as being in recovery and cites a 6% to 10% annual increase in Buenos Aires property prices in US-dollar terms. The latest available statistics do not support that rate for the capital’s market as a whole.

Most timely data cover the Autonomous City of Buenos Aires and the surrounding Province of Buenos Aires. These are separate administrative and statistical markets. Their results cannot automatically be treated as national figures, as Argentina does not have a single timely index of completed transaction prices offering comparable coverage across every province.

Purchase deeds, property advertisements and the average value recorded per transaction also measure different parts of the market. Comparing them without accounting for methodology can produce misleading conclusions.

Capital Transactions Remain Near Their 2025 Level

Buenos Aires City registered 5,990 property purchase deeds in June 2026, an increase of 3.96% from June 2025 and 10.2% from May.

Almost 30,000 purchases were recorded during the first half. The result was virtually unchanged from January–June 2025, indicating stable turnover rather than rapid market expansion.

The average amount per deed reached ARS176.7 million, equivalent to approximately $120,300 at the average official exchange rate used in the notarial statistics. It increased 23% in pesos but only 0.2% in dollars.

This figure is not an average apartment price. It measures the average amount recorded in completed deeds and follows a different methodology from property listings indices. The figures were published by the Buenos Aires City Notaries Association.

Buenos Aires Province registered 10,702 purchases in June, 9% fewer than a year earlier but 18% more than in May. First-half sales declined 7.8% to 55,035.

The province recorded 1,226 mortgage-backed transactions in June. The total rose 35% from May but fell 37% year on year. Mortgages were attached to 6,913 purchases during the first half, representing 12.5% of transactions and a 32.6% decline from the same period of 2025, according to notarial data reported by En Línea Noticias.

Apartment Asking Prices Rise by Only 1.6%

The average apartment asking price in Buenos Aires City reached $2,467 per square meter in June. It increased 0.7% during the first half and 1.6% over 12 months, the slowest annual growth in almost two and a half years.

The average remained approximately 12% below the index’s earlier peak. The claim that prices increased by 6% to 10% therefore cannot describe the entire capital market. Stronger gains may have occurred in individual buildings or developments, but the publicly available citywide index does not confirm them.

A studio was advertised at an average $108,300, a one-bedroom apartment at $130,800 and a two-bedroom unit at $179,600. These are amounts requested by sellers, not prices confirmed in completed transactions.

Puerto Madero averaged $6,136 per square meter, Palermo $3,420 and Núñez $3,382. At the lower end, Lugano averaged $1,048, Nueva Pompeya $1,459 and La Boca $1,577. The Zonaprop figures were reported by TN.

The gap between Puerto Madero and Lugano was close to sixfold. A citywide average therefore says little about an individual property without considering location, building age, condition, maintenance charges and its suitability for rental use.

Mortgage-Backed Purchases Fall Sharply

The capital registered 765 mortgage-backed deeds in June, 37.1% fewer than a year earlier. The first-half total declined to 4,152 from 6,610 in the same period of 2025. Mortgages were attached to about 12.8% of June transactions, compared with more than 21% a year earlier.

The absence of a registered bank mortgage does not reveal exactly how a buyer financed a purchase. Funding may come from savings, proceeds from another sale, private finance or other arrangements. Notarial data record whether a mortgage is attached to a deed but do not disclose the funding structure of every other transaction.

Most new Argentine housing loans are denominated in UVA, short for Unidad de Valor Adquisitivo, or Purchasing Value Unit. The peso value of the debt changes with UVA, which is calculated through the CER stabilization coefficient linked to consumer inflation.

Interest is charged on top of the indexed outstanding balance. A UVA mortgage therefore differs from a conventional loan with an unchanged peso principal.

The financial system added 1,534 new mortgage borrowers in April, with more than 95% of the loans denominated in UVA. Almost 39,800 borrowers entered the mortgage system during the preceding 12 months, but the monthly flow had slowed from its strongest levels in 2025, the Central Bank of Argentina’s banking report showed.

Banco Nación Rates Depend on Property Value

State-owned Banco Nación offers mortgages with maturities of up to 30 years. A nominal annual rate of 6% applies to eligible customers who receive their salary through the bank and buy a primary residence valued at no more than 210,000 UVA.

Under the standard programme, the maximum loan is 157,500 UVA and financing cannot exceed 75% of the lower of the purchase price or bank valuation. Properties above the 210,000-UVA threshold and second homes carry a 12% rate. Their maximum property value is 350,000 UVA and the maximum loan is 260,000 UVA.

The 6% and 12% rates apply to debt expressed in UVA. The peso value of both the outstanding principal and payments therefore changes with the index. Insurance and other selected terms also affect the total financing cost. The conditions are published by Banco Nación.

The bank separately offers an optional paid mechanism allowing eligible borrowers to limit monthly payment increases through the CVS wage index instead of UVA. The additional protection raises the total financing cost and does not eliminate indexation of the underlying debt.

Rents Increase More Slowly Than Consumer Prices

The average monthly asking rent for a studio in the capital reached ARS755,935 in June. A one-bedroom apartment averaged ARS860,106 and a two-bedroom unit approximately ARS1.16 million.

Rents increased 1.4% during the month, 15.7% in the first half and 31.3% over 12 months. Argentina’s national consumer price index rose 1.9% in June, 16.8% during the first half and 33.5% year on year, the National Institute of Statistics and Censuses reported.

The comparison is indicative rather than exact because the rental index covers advertisements in Buenos Aires City, while the consumer price index has nationwide coverage. Both comparisons nevertheless show that advertised capital rents did not outpace general inflation in the first half of 2026.

The frequently cited 184% increase in rental supply refers to the period following the repeal of the previous rental rules in December 2023 and to data collected by mid-2024. It was measured from an exceptionally depressed base and is not a 2026 annual supply growth rate.

A study using weekly observations from 2023 and 2024 found a substantial revival in available rental properties after deregulation. Its estimates also suggest that nominal and real rents were lower than the levels that might otherwise have prevailed. The authors of the IZA discussion paper describe the findings as preliminary because of the short observation period and Argentina’s volatile economic environment.

Rental Yields Vary Almost Threefold

Gross rental yield is calculated by comparing annual rent with the purchase price. It excludes taxes, repairs, building charges, management fees, insurance and vacancy.

Estimated gross yield reached 10.7% in Lugano, 8.2% in Villa Riachuelo and Nueva Pompeya, and 8% in La Boca. Puerto Madero produced approximately 3.6%, Palermo 4.7%, Núñez 4.8% and Belgrano 4.9%. The calculations use sale and rental listing prices reported by La Nación.

A high advertised gross yield does not guarantee a similar net return. Property condition, tenant demand, vacancy, repairs and the conversion of peso income into the investor’s home currency can materially change the result.

Argentina’s Currency Band Began in April 2025

The claim that Argentina introduced its exchange-rate band in January 2026 is incorrect. The floating regime within set boundaries began on April 11, 2025. Only the adjustment formula changed in January 2026, when the monthly movement of the boundaries became linked to the latest available inflation rate with a two-month delay.

On July 8, 2026, the official wholesale exchange rate was ARS1,490.9 per dollar and the average retail selling rate was ARS1,513.2. The lower boundary stood at ARS766.1 and the upper boundary at ARS1,816.6. By July 31, the limits had moved to approximately ARS754.1 and ARS1,844.9 per dollar. The methodology and daily values appear in the official exchange-rate band table.

Currency movements matter directly to property investors. Buenos Aires sale prices are generally quoted in US dollars, while rent, utilities, building charges and many taxes are paid in pesos. A stable dollar property value therefore does not guarantee stable rental income in the investor’s currency.

The Market Shifts From Recovery to Stabilization

The first-half results show neither a sharp collapse nor a new housing boom in the capital. Transaction numbers remained close to their year-earlier level, while average apartment asking prices rose 1.6% in dollars. Mortgage activity, however, lost much of the momentum gained in 2024 and 2025.

Buenos Aires Province performed more weakly: first-half purchases declined 7.8% and mortgage-backed transactions fell 32.6%. The two jurisdictions demonstrate how uneven the market has become, but they do not provide sufficient evidence for a precise conclusion about every part of Argentina.

As International Investment experts report, the Buenos Aires housing market has moved from recovery into stabilization, but a durable growth cycle has not yet emerged. Stable sales alongside declining registered mortgages show that bank credit is no longer driving demand expansion. Foreign investors should assess net income after taxes, maintenance, repairs and vacancy while accounting for the mismatch between dollar property values and peso rental income. Gains in selected buildings or districts should not be presented as market-wide price growth.

FAQ: Argentina and Buenos Aires Real Estate

Do Buenos Aires Figures Represent All of Argentina?

No. The Autonomous City and Province of Buenos Aires cover the country’s largest property market, but they do not automatically represent Córdoba, Mendoza, Rosario, Patagonia or other regions.

Did Buenos Aires Apartment Prices Rise by 6% to 10%?

The citywide listings index does not support that claim. The average reached $2,467 per square meter in June, increasing 1.6% over 12 months. Individual properties may have recorded stronger gains.

How Many Properties Were Sold in the Capital?

Buenos Aires City registered 5,990 purchase deeds in June 2026. Almost 30,000 transactions were recorded during the first half, approximately the same number as a year earlier.

What Is a UVA Mortgage?

UVA is an accounting unit whose peso value changes through the inflation-linked CER coefficient. The outstanding debt and payments can rise in pesos even when the nominal interest rate is fixed.

What Rental Yield Is Available in Buenos Aires?

Estimated gross yields range from 3.6% in Puerto Madero to 10.7% in Lugano. Net returns are lower after taxes, maintenance, repairs and vacancy.

What Is the Main Risk for International Investors?

One major risk is the currency mismatch. Properties are generally valued in dollars, while rent and many operating costs are denominated in pesos. Exchange-rate movements can materially alter returns in the investor’s currency.