Argentina is a fascinating place…blessed with extraordinary natural resources, excellent demographics, and enormous swaths of productive land.
But through generations of bad policy decisions and endemic corruption, it became trapped in perpetual economic chaos, with regular currency crises and bouts of hyperinflation.
Now things seem to be changing. President Javier Milei introduced wide-ranging reforms to shake Argentina out of this cycle of constant economic crisis, and the early results have been impressive. If Argentina is finally turning a corner, the real estate opportunities will be incredible.
That’s why I asked Real Estate Trend Alert (RETA) member and seasoned global investor Kim Iskyan to put boots on the ground there to investigate.
Kim’s a veteran global investment analyst and writer who’s spent much of his career—and life—abroad, dissecting markets and opportunities in real time.
In late August and September, he traveled to Argentina and scouted its capital, Buenos Aires…the charming colonial city of Salta 800 miles north of Buenos Aires…and beyond…
You can read his thoughts on Buenos Aires here. And Salta, a city home 500,000 people, here.
Below, Kim tells you what he found in the off-grid community of Cafayate…
Buenos Aires, Argentina’s stunning capital, is known as the “Paris of the South.” Kim traveled first to Buenos Aires, and then to Salta…finally arriving at Cafayate.
Beauty at the End of the World
By Kim Iskyan
120 miles south of Salta sits Cafayate, nestled in a spectacular valley surrounded by the Andes and home to some of Argentina’s highest-altitude vineyards. The sun shines 300 days a year, and the scenery makes the mountains around Napa Valley look like molehills.
The drive from the city of Salta—which itself is already remote—took more than three hours over gravel roads. My rental car’s speedometer rarely exceeded 30 mph (pro tip: splash out for a 4×4… and, depending on which road you take, prepare for some very windy roads). The spectacular scenery was the desert and cacti of New Mexico (plus llamas) crossed with the Utah’s Zion National Park, and an artist’s palette…towering mountains, brain-twisting geological structures, columns of ancient stone, in a rainbow of colors.
The journey was worth…the journey. And the destination was also worth every jarring mile.
The long and winding road to reach Cafayate. It’s worth every hard mile though when you get to see scenery like this…
La Estancia de Cafayate: Off-grid Luxury
In the early 2000s, Doug Casey—a legendary contrarian investor and former investment newsletter writer—identified this remote wine valley as the perfect location for his vision of an off-the-grid luxury community and developed it in conjunction with a local family, and architect Jack Zehren.
And disconnected you’ll feel. Cell service is spotty. The nearest major hospital is hours away. Cafayate has a small airport where small planes can land. For the non-private jet-set, driving from Salta is the main way to get there. Door-to-door from (say) Washington, D.C., it’s close to a two-day trip.
Today, La Estancia de Cafayate is a gated community with 430 lots spread across thousands of acres, featuring world-class facilities, an award-winning restaurant, a golf course, and spectacular scenery.
The sun sets over Cafayate…
“Initially, it was very heavily expat,” Terri Casey (no relation to Doug), a local real estate broker who’s worked the development since inception and currently lives there, told me over coffee. “Americans, Europeans, people looking to get away from it all. But now it’s mostly Argentine buyers from Buenos Aires, Salta and Tucuman.”
So what does it cost to own here…
On the luxury end, this 4,600-square-foot property (plus another 1,650 square feet of patio and terrace) takes “off the grid” to new dimensions. It has solar power, its own water treatment system, water and gas bunkers—along with 1.5-foot-thick exterior walls and incredible Andes views.
Built seven years ago, the main house has never been lived in. The property includes a casita—good for visiting grandparents, small rental, or office. At $1.25 million, it’s not cheap and represents a lifestyle investment rather than financial one.
This house, priced at $595,000, is a large (3,640 square feet) and elegant Spanish colonial style, with a big covered patio (of course with a monster parilla). As many of the houses at La Estancia, it’s literally next to a vineyard. Wine, views, fresh beef, in the crystal air of the mountains…it’s one of the many spots where I could easily picture myself getting away from it all.
Another option is this smaller (1,450 square feet) home—fully furnished and ready to move in. It’s on a large lot, bordered by vineyards, and with plenty of space to build a larger house. At $530,000, it has a ton of potential.
Plenty of empty lots are available at La Estancia, both from the developer as well as in the secondary market. And if you don’t want to go through the hassle of putting together a home yourself, a builder that’s built many of the houses in the community has a selection of pre-approved designs available.
These aren’t financial investments. Rental yields are minimal—most owners use properties seasonally and rent occasionally to cover maintenance costs. Others retire there permanently.
But if you’re looking for an out-of-this-world lifestyle, this is it.
Ronan says: This is an exciting country to watch and if Argentina does turn a corner this time, the real estate opportunities will be incredible. Kim produced a full report on his scouting in Argentina, which I shared with RETA members.
Join RETA here to unlock access to this report and a wealth of other real estate research…
Wishing you good real estate investing,
