Combine the recent and predicted levels of GDP with a government backed tourism industry which has grown 10% year on year since 2003, and property prices which have risen 50% since 2002, yet still remain around a tenth of the European equivalent, and you have the ideal conditions for profitable property investment. Here are 10 reasons why Argentina is attracting investors from all over Europe and North America and from all walks of life.

1.Economy

Argentina is one of the world’s fastest growing economies and Buenos Aires is among the world’s fastest growing cities. Since 2003, when populist president Nestor Kirchner took office, the economy has steamed ahead at an average clip of nearly 9 percent a year, far outpacing the rest of the region of South America. And there’s little sign of any slowing; the International Monetary Fund projected growth of 7.6 percent for Argentina in 2006. Even neighbouring Chile, the biggest economic success story in the Americas over the last two decades, can’t boast those numbers. According to the Wall Street Journal "Perhaps the most tangible sign of Argentina's economic recovery is its booming real estate market, which has transformed Buenos Aires, the capital, into a construction site." Although gauging economic growth is a tricky business, estimates peg Argentina's at around 8% annually.

2. Stability

Due to most people paying cash, the property market has stability that is unlike the markets in the UK and US where people are heavily leveraged by being encouraged to take mortgages and other loans and prices are subject to variations in interest rates.

3. Exchange Rate

All real estate in Argentina is priced in US Dollars and due to the strength of the pound and the euro, this makes it very attractive to European investors who are buying apartments in Buenos Aires.

4. Capital Growth

Prices have increased some 50 – 60 % over the last 6 years and they continue to climb. The financial institutions are also coming around to the concept of mortgages and therefore, as with the UK and US markets, the demand and thus the price will only increase with time.

5. No Capital Gains Tax

As an individual, when you come to sell your property in Argentina you will not be subjected to pay capital gains tax. All you will need to pay is a transfer tax of 1.5%, although this can be avoided if you are immediately re-investing in another property in Argentina. If however you are buying as a corporation, capital gains can be as high as 35%.

6. Tourism in Argentina: The Growing Tourist Market

Tourist numbers have increased year on year by around 10% since 2003, with Argentina proving particularly popular with British visitors. The number of UK tourists is up by more than a quarter (27%) on last year, with an increasing number of Britons coming for plastic surgery which is around one third of the cost at home. According to Argentina’s La Nación newspaper, the city’s five-star hotels are said to be running at 95 per cent occupancy. In 2006, 3,000 new jobs were created by tourism and it is anticipated that 12 per cent of the workforce will be employed in the sector by 2010

7. Prices

In prime real estate locations the prices are one tenth of what they would be in North America or Europe. In real terms that’s like buying a £600,000 flat in Mayfair, London, for £60,000!!!

8. Running Costs

As you might expect, the cost of living in Argentina is extremely low in comparison with Europe and the US.

9. High Demand for rental properties

As the level economic activity and tourism in Buenos Aires increases so too does the demand for providing accommodation for corporate visitors and tourists.

10. Rental Return

The average annual net income in Buenos Aires is around 10% which, when added to the annual capital appreciation which has been up to 30% over the last couple of years creates a solid income stream. Annual rental returns vary depending on whether the rentals are short or long term.