Founded by Jeanne Reynolds, Reynolds Propiedades SA has been serving its clients’ needs since 1966. With five offices in Argentina and one in Montevideo, Uruguay, the firm specializes in properties located in Buenos Aires—both downtown and within the suburbs—with representatives located in Bariloche and Argentina’s wine-producing area, San Rafael, Mendoza. Here, President and Managing Partner Paul A. Reynolds discusses the current state of Argentina’s market.
Please describe your current housing market.
Paul A. Reynolds: While the average home price in the area currently stands around $300,000 USD, we’re seeing a slight decline in prices, which is mainly due to lower closing prices. Asking prices are basically the same as they were the year prior. We’re also seeing an overload of inventory due to reduced demand.
Tell us about the types of properties in your market and which are most popular.
PR: Smaller apartment units between 400 and 800 square feet are most popular.
What types of buyers do you work with? Are they predominantly local, or mixed from other countries?
PR: Our buyers are predominantly local. Looking back, 2002 to 2009 were the best years involving foreign real estate investors. This was during the aftermath of the 300-percent devaluation of the Argentine currency.
What are some of the most important trends in your market?
PR: Due to the lack of mortgage funding and overall liquidity, there’s a market for micro apartment units with a wide variety of amenities, resulting in an increased demand for rental units. Real estate professionals have had restrictions placed on rental commissions, which are payable 100 percent by property owners today. Prior to this, owners paid one-third of all commissions earned.
What are your biggest challenges/opportunities for growth?
PR: We’re lacking a credible government economic plan, as well as bank financing, both of which present challenges.
How does being part of Leading Real Estate Companies of the World® help advance your business?
PR: Property owners view our association with LeadingRE as a major opportunity to market their homes to foreign investors, especially in light of the current economic uncertainty prevailing in Argentina. The latter allows us to strongly increase the opportunity of bringing in new listings.