Argentina’s best kept secret

Argentina has a tourism secret that has Europe looking over its shoulder…

As the last lift draws to a halt towering above the receding slopes and the après ski is in full swing, most skiers clustered on mountains across Europe will already be dreaming of the white snowcaps a year away.

However what they don’t know is that property investors have already started their snow-booted journey to Argentina to kick off the ski season at one of the championship resorts…in June. With tourism and the property market expanding in Argentina, investors are sure to return home with more than just goggle eyes.

Argentina, probably better known for its horseback riding than its slaloms, has several international quality ski centres in the Andes mountain range with state-of-the-art lifts and infrastructure.

Beginners can take advantage of the ski schools run by professional instructors and more advanced skiers and boarders can take to the slopes of varying levels of difficulty.

Valle de Las Lenas, close to the regional capital of Mendoza, at its highest point reaches 3,340m (11,253ft) and with 13 ski lifts, beginners through to expert skiers can traverse the slopes from early June to mid October*.

Excellent infrastructure

This resort is one of the main ski and snow board resorts in the country; it has a slalom stadium and 27 authorised runs with a maximum ski-able length of 7,050m, including one of the longest runs for intermediate levels in the world.

Las Lenas, although over 1,000km from Buenos Aires, is serviced with regular direct flights from the capital to Malargüe airport where visitors can take a shuttle bus to the heart of the resort.

Catedral Alta Patagonia in the Bariloche Region shares the same long season as Valle de Las Lenas. It has an excellent lift infrastructure including an aerial tramway as well as an extensive snowmaking system to ensure skiers can make the most of the resort throughout the season. Its highest point reaches 2,050m (6,725ft).

These two international resorts highlight the possibility for taking to the snow in Argentina; there are dozens more resorts stretching the length of the country catering for every level of skier**.

Tourism and Argentina’s ‘great outdoors’

The mountains are undoubtedly the highlight of Argentina’s ‘great outdoors’ but if skiing isn’t your thing then you can try your hand at climbing, hiking, horseback riding, hang-gliding, paragliding, hot air ballooning, rafting, kayaking or canoeing.

Argentina offers a wide range of tourist attractions, which is something that the Government of Argentina is planning on expanding in the years to come as well as the continued development of the fashionable party capital Buenos Aires.

Tourist numbers have increased year on year by around 10% since 2003, with Argentina proving particularly popular with British visitors. In 2006, 4.1 million visitors were expected in Argentina, worth an estimated £1.9bn to the national economy indicating that tourism is big business.

In 2005 it was reported that the tourist sector accounted for the third most important source of foreign exchange revenue, amounting to USD 2.6 billion and employing 1.5 million people.

International investment into the country is also strong; investment comes mainly from USA and Spain as well as large firms such as American Airlines, BP, British Gas, Carrefour, CitiGroup, Coca-Cola, Federal Express, Fiat, Ford, Four Seasons, General Motors and PriceWaterhouseCoopers bringing with them demands for employee accommodation as well as contributing to the economy and developing infrastructure.

Perfect recipe for buy-to-let success

For the keen property investor, this ever-expanding tourist sector coupled with resorts and infrastructure already in place, means that Argentina is the perfect recipe for buy-to-let success.

The construction boom has already begun with a huge increased demand for property. During 2006, construction growth reached 21.2 per cent, however prices in prime real estate locations are still only one-tenth of what they are in the United States and Europe.

Buenos Aires, one of the worlds fastest growing economies (8.5 per cent in 2006***) and sometimes know as the ‘Paris of South America’, is the main target for overseas property investors. There is a strong rental demand from the Argentinians as prices have increased beyond their purchasing means.

Demand varies across the year especially in popular tourist locations and academic regions with a high volume of students. ReporteInmobiliaro.com gives us an idea of rent across the capital; a two room apartment will have an average monthly rent of AR$ 900 in Recoleta whereas in Belgrano it will range from AR$ 550 to AR$ 2000 a month.

Niche investment markets a 'growth area'

While real estate investment in Buenos Aires is strong, the niche investment markets including the ski regions is a growth area. Kevin Prior, Sales Director of Obelisk International comments, “Argentina on the whole is an excellent destination for real estate investors to consider.

With a great deal of property investment being directed at emerging Eastern Europe, it is essential to maintain a diverse property portfolio and South America is certainly a market to help achieve this.”

“Economic growth is high and the potential for buy-to-let investments in the city and the popular tourist resorts, including the ski locations, present exciting opportunities.”

For more information, visiti http://www.obeliskinternational.com