Mendoza lot prices rose an average of 18% in 2011, according to new data released this week from the Mendoza Real Estate Association. The analysis found while the price of the average lot in Mendoza rose 18% last year, there were some cases where annual appreciation was closer to 25% depending on the lot size, location and surrounding amenities.
Los Andes’ Jaquelina Jimena interviews several sources who point to the scarcity of available land in Mendoza given the recent wave of new construction and master-planned communities requiring hundreds or thousands of acres. Local brokers report the majority of Mendoza land transactions are all cash deals.
A spokesman for the Mendoza Real Estate Association, Santiago Debe, tells Jimena the group is forecasting continued Mendoaza real estate appreciation in 2012 given “the virtual lack of other investment options considering currency controls, financial investments with returns lower than expected inflation and continued volatility in the stock market. For these reasons, the real estate market will continue to be the safest and most profitable alternative for Mendoza residents.”
The 18% average appreciation story is an important part of a larger narrative being told to Citi Private Banking clients through the Knight Frank Wealth Report. The most recent issue of the Wealth Report features an article titled, The Market for Lifestyle Vineyards, which analyzes real estate appreciation in fifteen of the world’s most famous wine regions from Napa to Chianti to Bordeaux.
Of the fifteen regions surveyed, Mendoza was #1 in terms of 2010 price appreciation (+15%) almost double the #2 region, the Colchagua Valley in Chile (+8%). The other thirteen regions posted either zero growth or double-digit declines including Var (-15%), Chianti (-16%), Hawke’s Bay (-23%) and Napa Valley (-25%).
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