Topic: Real Estate Argentina
The Real Estate markets as well as the influx of tourism in Buenos Aires are still growing. The lines we had traced a couple of years ago referring to these market’s evolution have accentuated the trends we already spotted before the economic turmoil was over.
Our analysis of the Argentine market was indeed very accurate. Statistics prove us right not only within the limits of our analysis but even more within the market areas we highlighted as in growing and developing conditions.
The Buenos Aires City government and its tourism area stated in a recently issued report: that the area’s income for 2005 surpassed the 1,000 millions of pesos, being this 18.6% more than 2004, and one of the highlights was the fact that the 5 star hotels occupation grew a 6% from 2004, reaching this year’s June-July period about an 82% occupation.
Following this line, the government stated that their preliminary studies of the foreign visitors flux especially in the month of July grew an 8.8% in relation to last year’s numbers.
Even more, the economy ministry of Buenos Aires states that this year’s tourism income was of 1,021,192,665.pesos, 71% of that number was the proportional money spent by foreign tourists. This is also another indicator of a sector growth, for it was 18.6% higher than in 2004.
Taking in consideration the evolution within these areas and these facts we can work on a much more sustainable information basis and trend-setter in order to develop a solid business plan.
Our project a couple of years ago set foot on a terrain that was just in its early developing stages here in Argentina. We pointed out the necessity and viability of high class, top notch, sophisticated yet homey accommodation options. Based on public government documents that evidenced a true historical opportunity within the local Real Estates market and a continuous increase within the flow of visitors to our republic, we came to the true conclusion that this was an outstanding opportunity. That was the ground analysis atop which we began to work on the development of a multinational investment project aiming to develop a boutique art oriented hotel in the heart of Buenos Aires. The magnitude of the project in many ways implied the need of us letting in a stand-by situation our work at the Buenos Aires Toy Museum and ArtDealer.
At the moment, the absence of any solid competition within this new field was indeed a solid reason to put our cultural and historical recovery projects on hold and fully advocate to this new concept area. The goal was to achieve a solid situation and gradually fuse our cultural activities blending the sophisticated bonvivant public with our selected antique and collectors’ activities.
If indeed we were among the first to spot this opportunity within the local market, we acknowledged the fact that this wasn’t a project we could carry on ourselves alone. The key factor was large numbers’ investment. The starting capital was to be a full figure, for this is a magnitude project. We posted our balance and ideas online, shared it with our friends and clients and began to net a web of potential business relationships.
At the same time we developed this idea, both ArtDealer and the Buenos Aires Toy Museum went thru an extraordinary development and growth. Internationally based recognized magazines were contacting us upon information; major Spanish speaking news papers were publishing articles on our project and our research work. It was a true turning point within a 7 year cultural project. This was the moment in which our intellectual production was beginning to collect years of hard work. We were and still are among the very few privileged cultural projects based in Argentina that are making a cultural statement within the world of antiques and collectors. This social and cultural acknowledgment is the stepping stone for making a true difference within the Art and cultural world and to relocate Buenos Aires among the greatest cultural capitals in the world by revaluing its historical production of collectibles, antiques and toys.
In this situation, and given the fact that the boutique hotel project was to be carried on essentially by the same small team that’s been developing ArtDealer and BA Toy Museum during the last couple of years we found ourselves in a crossroad decision making situation.
At the same time there’s a financial aspect that should be clearly presented. If as a matter of fact our business was taking international notoriety and we were becoming the indisputable expert opinion within our field, the symbolical capital was flowing at a much faster rate than the material capital. The differential capital flow together with an initial personnel limitation led us to put the boutique hotel project on hold while we –as a response to the growing demand of our intellectual products- responded the international and local demand for ArtDealer and Toy Museum.
However we were convinced that abandoning the interesting opportunity within the real estates market was a mistake. Hence we began to work on the initial ideas that sustained the Boutique hotel project in order to develop a sustained and segmented, profitable and achievable business.
The key element that appeared almost immediately was the fact that we should not put on hold our years’ cultural project, but we should take advantage of the rename we achieved to conquer around the world.
The staging and segmentation of this upcoming project was also a key factor, given the fact that ArtDealer TM is the head base here in Buenos Aires. We are convinced that we acknowledge our weak spots; however we are even more convinced that the strength should be weighed on our strong spots.
We are soon to be opening our new offices and Gallery in the heart of Palermo Hollywood.
Hereby we develop a detailed business plan for what we think is the new and best version of our boutique lodging: Art - Toy Museum Gallery and Flats.
Art dealer 2006 Business plan (Term 2006-2009)
NOTE: this is the first and preliminary version of a broader business plan that will take into consideration variable alternatives of property, construction and recycling.
-- We are convince that in order to develop a profitable hotel, the initial capital investment –not only in terms of money but also in terms of advocated human resources working full time in this development- exceeds our current possibilities, and implies an unnecessary risk that can and will be taken in a staged and organized form in order to maximize the potentialities.
-- Building a limited number of top quality design flats to be rented by the week and/or month, owned by our investors not only implies an immediate return of the investment at a competitive rate, but also implies a innovative twist to the boutique concept.
Insight balance and perspectives:
--There’s an increase in the flux of tourism to our country that has a strong base in the Peso/ Dollar (or Euro) relation.
--Buenos Aires is perceived as a centre of art, antiques, collectible, fashion to all Latin America, a safe place where the cosmopolite feel of the European lands merges with the very own Latino way of being.
--All Argentina is getting to be on the map (even the Hilton is expanding to Ushuaia) before it was adventure tourism, now it’s also luxury and glamour.
--Palermo Hollywood, Soho, Viejo, are neighbourhoods that have grown from lower class and middle small workshops to a bohemian BOBO style area, were locals and foreigners meet and exchange.
--Properties have jumped to extraordinary amounts comparing to only 5 years ago.
How to keep up now and make your investment work?
How much more can the sq meter be worth in this part of BA?
They are selling the sq meter from in sophisticated areas 1500 U$S to Puerto Madero 4000 to 5000 U$S, how can you invest this money and still get back an interest rate equal or more than 3% or 4% monthly?
San Telmo is not only art & antiques but also there are from time to time,a Classic Car Show's......
Classic Car Show San TelmoInterested in buying antiques and collectibles from Buenos Aires or for that matter any other item that I have mentioned in any article you have found on this my web site, you can buy Toys from my museum and thru my eBay, at the Toy Museum on eBay press here; Toy Museum on eBay or thru The Buenos Aires ArtDealer, press here; Art Dealer on eBay From Art to Antiques. Or contact me direct.
For more information at:Email Bob Frassinetti. Press here to go to The Buenos Aires Art Dealer, webzine magazine on Art, Antiques & Collectibles made or found in Argentina. The Buenos Aires ArtDealer, Argentina.
Case Tractors in Argentina Bob Frassinetti. Copyright 2005. Roberto Dario Frassinetti. Argentina.
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