Summer 2004, Vol 29, No 2

Abstract: In early 2002, Argentina devalued its currency, the peso, which had been pegged to the dollar. As a result, the peso lost nearly 66% of its value in a few months. What impact did this major currency depreciation have on the values of residential real estate assets in Argentina? What can investors learn from the Argentine experience to protect their real estate investments from currency devaluations? The evidence supported in this paper shows that location is the key factor in retaining value in dollars. The better the location, the higher the retention value, and the less desirable the location, the greater loss was suffered in real dollar terms.