The South American city of Buenos Aires has set a price record, resale homes registered at 265,000 pesos, or just under $11,000, according to a report released by UBS this week. This price is up 8.6% from September and 30.6% from October 2017, and is near the current peak of 238,000 pesos, or approximately $9,000, in December 2017.
Real estate analysts have blamed the surging prices on a lack of properties for sale, exacerbated by rising inflation. The luxury housing market has so far managed to avoid the worst effects of the economic slowdown that has hampered the economy of Argentina in recent years. It is also helping to ensure that the middle class continues to enjoy economic growth, which has spurred a long-term increase in consumption.
Over the last year, home prices have risen in cities across South America, with prices up 3.7% for homes in Bogota, Colombia, and 2.5% in Lima, Peru. According to UBS’s measures, home prices rose by 4.5% in the first 10 months of 2018.