High demand means high yields
According to research by the Ministerio de la Produccion, Argentina suffers from a shortage of two million houses. Buenos Aires accounts for 35% of that figure alone, meaning the city needs 700,000 homes to meet demand, and because of this, demand for rental properties is high. From our comparable research we estimate that apartments in Caballito Nuevo could potentially generate 8% net yields if let on the open market, where contracts are long and occupancy rates are good.

Clear exit
A third of ArgentinaÍs population live in the capital Buenos Aires, and demand for top quality, well located properties is high. The developer KAS has already sold 70% of the units to the local market, which is a good indication to investors that there is a domestic demand for this type of property and offering a clear onward sale.

Under market value
In a buoyant property market like Buenos Aires it is rare to be able to negotiate sizeable discounts to market value. However, Ready2invest prices for apartments in Caballito Nuevo represent a 23% discount to current market value. Buying under market value in this way provides upsides such as instant equity and leverage, as well as protecting your downside.

Timing
Argentina has experienced five consecutive years of rapid economic growth above 8%, and The Economist predicts ArgentinaÍs GDP will continue to increase by around 5% until at least 2012. These figures indicate that the countryÍs economy has sufficiently recovered from the financial crisis in 2001. Thanks to ArgentinaÍs swift economic revival, encouraged by record breaking export figures(3), the country now represents a lower risk investment environment, where high growth and returns are possible.

Increasingly affluent population
ArgentinaÍs middle classes continue to thrive as a result of the economic upturn. More than 40% of the population now fits into the middle-class demographic; double the number from 2003. In Latin America between 2002 and 2006, 15million households improved their incomes to the extent where they were no longer considered poor. If this rate of growth continues, by 2010 the middle classes will be in the majority.

Developer track record
When investing in property so far away it is important to have a good developer handling the project. KASÍs developments in the Palermo district of Buenos Aires have earned them a prestigious reputation across the city. The company is well-known for using quality materials, and for their projects completing on time, both reassuring factors for investors. Construction on Tower 1 in Torres Caballito Nuevo is already underway with completion for the whole development due in 2010. (See page 7 for more details)

Hotspot overflow
Caballito is a popular residential ïbarrioÍ, close to the centre of Buenos Aires. As with all capital cities, demand for the best districts is fierce and Caballito is ideally placed and priced to attract locals who cannot afford to live in the more fashionable areas nearby, but who still wish to live close to Buenos AiresÍ buzzing heart.