Looking at Buenos Aires from the window of a taxi on the world’s widest avenue — Avenida 9 de Julio — it’s all a bit difficult to believe. Just five years ago, Argentina’s economy collapsed, impoverishing more than half the population and leading to the largest loan default ($155 billion) in modern history. And yet, by appearances, the crisis has come and gone with hardly a trace.

Massive French-style mansions and soaring steeples, most built around the turn of the 20th century when Argentina was one of the richest countries in the world, overlook grand plazas and manicured greens. Stylishly coiffed, if conservatively dressed, executives chat on cell phones while sipping espressos in curbside cafes or feasting on succulent, homegrown steaks in smoky parillas; the air buzzing with Castellano (Argentina’s distinctive, slang-saturated version of Spanish).

The recession of the late 1990s and the devastating devaluation of the peso, from 1-to-1 with the U.S. dollar to 3-1, literally overnight, certainly have left their scars — both financial and emotional — as well as a lingering distrust of any advice originating in Washington. But if the crisis was crippling in a way few countries have ever known, the recovery has been equally impressive.

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. And there’s little sign of any slowing; the International Monetary Fund projected growth of 7.6 percent for Argentina in 2006. Even neighboring Chile, the biggest economic success story in the Americas over the last two decades, can’t boast those numbers.

As China and India drive up demand for natural resources, Argentina, the world’s fifth-largest exporter of agricultural goods, is profiting as never before. Soy, meat, dairy, grain, tobacco, wool, and hide products from the lush Pampa Húmeda are delivered via highway to Buenos Aires, the nation’s capital and biggest city. Located on the Rio de La Plata (River of Silver), the country’s hub of commerce, industry, finance and culture is also one of the world’s busiest ports.

From its founding in 1588 by the gold-seeking Spaniard Pedro de Mendoza, Buenos Aires’ significance as a point of distribution, rather than any precious metal, has fueled its growth.

Long before declaring its independence in 1810, porteños (port dwellers), as the city’s inhabitants are known, defied Spain’s orders that all trade pass through Lima, Peru. A thriving industry in contraband smuggled into the “City of Fair Winds” laid the financial foundations for South America’s most developed country.

That may seem a tenuous title given the boom-bust cycle that has long characterized Argentina’s economy. But current trends, like a decreasing poverty rate, down 25 percent since 2002, and steadily shrinking unemployment, have given Argentines and outsiders alike reason to believe the best times are yet to come. Investment has more than doubled since the crisis, hitting $41 billion in 2005, or 24 percent of GDP; the automotive industry is bouncing back; and a construction boom — the sector expanded by 20.5 percent last year — is breathing new life into once-deserted areas of the capital.

Most remarkable of these rejuvenated spaces is Buenos Aires’ 47th barrio, Puerto Madero. Built in 1889, the port was abandoned soon thereafter, too small for the burgeoning maritime trade empire it was designed to serve. When that empire fizzled out, the port’s gutted, rat-infested warehouses came to reflect the dashed hopes of the nation itself. In 1989, however, with inflation at almost 200 percent, president Carlos Menem sold the land to a private consortium, sparking a process of development that eventually would render a new port with a new purpose.

Today, Puerto Madero embodies a resurgent, confident, and ever-modernizing Buenos Aires. High-end eateries and high-rise office buildings have filled the void, and an all-but-forgotten mound of rubble has become the most valuable residential real estate in Latin America (prices average $1,800 per square meter). Indeed, residential projects are driving the area’s rebirth, and chief among them is the Faena Hotel + Universe.

A luxury hotel and apartment building in one, the Faena is the brainchild of Argentine fashion designer-cum-entrepreneur Alan Faena. Designed by French architect Phillipe Starck, it’s the ultra-cool crash pad of Buenos Aires’ international jet-set. And still it strives to preserve, as Faena puts it, “the essence of who we Argentines are.” Housed in a historic brick grain silo, the hotel is just one of a series of restored buildings that make up Faena’s grand plan: “El Porteño Art District.” The objective, he said, is to “redefine the living experience by transforming an urban space into a center for the arts and creativity.”

Still, the area’s transformation hasn’t been entirely urban or carefully planned. One of Buenos Aires’ most attractive features is the Resérva Ecológica. During the military dictatorship that ruled Argentina between 1976 and 1983, authorities sought to build a satellite city across from the port. But after the military lost its grip on power, plans stalled and nature took its course. Today, joggers and bikers take to the 868-acre green space for fresh air, exercise or romantic strolls by the water.

The economic turnaround hasn’t been without its problems. At 12 percent, inflation is a continuing concern. The government has resorted to controversial price freezes as well as a ban on meat exports. But prices keep creeping up. According to the president of the Central Bank of Argentina, Martín Redrado, that’s natural for a rebounding economy. Unlike in years past, he said, Argentina’s fiscal solvency and prudent monetary policy can keep it under control.

Buenos Aires is business-friendly, comfortable and connected. U.S. travelers don’t need a visa to enter the country, and most porteños are glad to show off their English, which many, mostly younger people, speak quite well. There are 17 five-star hotels, endless options for fine dining, and cybercafes (or locutorios) all over the city. WiFi hotspots are increasingly common and cell phones are ubiquitous.

With its biggest fiscal surplus in 50 years, a trade surplus bolstered by Asian demand, tourism levels at historic highs, and consumer spending on the rise, Argentina is putting a painful past behind it – and Buenos Aires is leading the way.

LODGING

HILTON BUENOS AIRES

A soaring, light-filled atrium lobby greets visitors to this 418-room hotel best characterized by stellar service and comfortable rooms. Amenities include a health club with steam room, spa, and workout facilities to a business center with high-speed photocopiers, video-conferencing equipment and ergonomic armchairs. Two executive floors offer exclusive check-in and -out services, complimentary hors d’oeuvres and postcard views of Puerto Madero. $$$
HILTON BUENOS AIRES
Ave. Macacha Güemes 351
tel 011 54 11 4891 0000
fax 011 54 11 4891 0001
www.hilton.com

FAENA HOTEL + UNIVERSE

Easily the plushest place in town, the hotel’s 83 snow-white suites, complete with home theater system, massive mirrors, and a charming “experience manager” to assist your every need, are just a fraction of the Faena experience. Between lounging in The Library (read: bar), live shows in the Cabaret, and dining under the gaze of unicorn heads in the Bistro, the only drawback to it all is that the Faena makes the surrounding city somewhat dull by comparison. Try to leave at times if you can. $$$$
FAENA HOTEL + UNIVERSE
Martha Salotti 445, Puerto Madero
tel 011 54 11 4010 9000
fax 011 54 11 4010 9001

FOUR SEASONS HOTEL BUENOS AIRES

Soft and soothing are the first words that come to mind when describing the Four Seasons Hotel, and maybe that’s why hard rockers Bono and Mick Jagger chose to stay here last year when their tours passed through Buenos Aires. Located across the street from the French Embassy in the elegant neighborhood of Recoleta, the hotel is popular among executive travelers. Behind the 138-room tower, a Belle Epoque-style mansion houses seven spectacular suites. $$$$
FOUR SEASONS HOTEL BUENOS AIRES
Posadas 1086, Recoleta
tel 011 54 11 4321 1200
fax 011 54 11 4321 1201
www.fourseasons.com/buenosaires

DINING

CASA CRUZ

With its massive gilded doors, dimly lit lounge and redwood-paneled walls, this lavish lair of the Buenos Aires elite is a recent addition to the capital’s culinary offerings — and among the most exclusive, too. But if you can get a reservation, Chef German Martitegui’s adventurous menu is sure to dazzle. Such favorites as the king crab and fois gras aren’t so common in the city of steak. After the meal, have a Habana while the sobremesa (after-dinner conversation) unfolds. $$
CASA CRUZ
Uriarte 1658, Palermo Hollywood
tel 011 54 11 4833 1112
www.casa-cruz.com

CABAÑA LAS LILAS

To be considered the best steak house in Buenos Aires is to be the head of a very large herd, and Cabaña Las Lilas is just that. The meat comes from cattle baron and owner Octavio Caraballo’s prize-winning Angus and Hereford farm, and the people, mostly businessmen and bag-toting tourists, come from all over the world. With a crowd like this, you’re sure to find high prices (by Argentine standards), but the service is excellent and the wine list encyclopedic. $$$
CABAÑA LAS LILAS
Alicia Moreau de Justo 516, Puerto Madero
tel 011 54 11 4313 1336
fax 011 54 11 4315 6045
www.laslilas.com.ar

SUCRE

About a 15-minute taxi ride from the city center, this sleek, spacious restaurant is the place to see and be seen, with Buenos Aires’ beautiful people filling its suede leather couches every night of the week. The biggest star, though, is always the one in the kitchen — Chef Fernando Trocca. His daring dishes include fresh organic fare for the health-minded, as well as soul-warming stews, and some of the most sinful sweets (thus the name) in South America. Reservations are a must. $$
SUCRE
Sucre 676, Belgrano
tel 011 54 11 4782 9082

DIVERSIONS

Tourism in Argentina hit an all-time high in 2005, mainly owing to a high exchange rate with the peso and bargain shopping. For jaw-dropping deals on fine leather goods, stop by the Patio Bullrich Mall (Avenida Libertador 700, tel 011 54 11 4814 7100, www.shoppingbullrich.com) or stroll the cobblestone streets of San Telmo for antiques.

Buenos Aires is as culturally rich as it is architecturally enchanting. La Boca, a working-class neighborhood south of downtown, gave the world the tango. The Teatro Colón (Cerrito 618, tel 011 54 11 4378 7100, www.teatrocolon.org) is South America’s biggest opera house. And the Recoleta Cemetery with its immense, ornate mausoleums, including that of Evita, the beloved wife of former dictator Juan Peron, is an absolute must-see.

INFO TO GO

All international flights arrive at Aeropuerto Internacional Ministro Pistarini (EZE), more commonly known as “Ezeiza,” a half-hour taxi ride from town. All domestic flights leave from Aeroparque Jorge Newberry (AEP), which is a short distance from downtown Buenos Aires.The easiest way to get into town from Ezeiza is by taxi (make sure to take an official “Radio Taxi” as the others, though safe,may up the price). A ride runs about $20. Buses are also available and leave on the hour.

Getting around Buenos Aires is easy; taxis abound (there are more than 40,000), and the subway, the oldest in South America, is safe and clean. Flight routes radiate from Buenos Aires to all of the continent’s major metropolitan centers, including two daily nonstop flights to Rio de Janeiro. New investments in transportation infrastructure include an $800 million high-speed railway to connect the capital with the cities Rosario and Córdoba by 2009.

Checking In With Michael Koh
President of Apartments BA

Before becoming one of Buenos Aires’ biggest names in real estate, 33-year-old Chicago native Michael Koh was co-owner of a healthcare coverage company in Dallas, Texas. “It was a great job, I was making plenty of money,” he recalled. “But I was seeing a lot of our clients pass away just three or four years into retirement. And it made me wonder — What if it were me? What if I had three years?”

The job changed Koh’s perspective. He decided he actually would live as though his doctor had told him he had only three years left. And because he could afford to do it, Koh began to travel. He started going to the places he’d always wanted to go, seeing and doing the things he’d only ever read about in magazines.

Buenos Aires had long been at the top of Koh’s list. “I loved the culture, the people, everything,” he said.

When he first arrived in 2002, Argentina was still reeling from a deep recession, and the government’s decision to devalue the peso that year led to a currency crash. In addition to losing fortunes in savings, many Argentines lost all trust in the banking system, the effects of which continue to play out today.

For a while, Koh was rotating between Buenos Aires’ luxury hotels, savoring his “last days.” But with expenses accumulating, he wondered if an apartment might be a better choice. So he went searching. It was an experience, he says, he would never want to repeat.

“It was a disaster. I got cheated.”

Eventually, Koh found an empty apartment, which he bought and furnished himself. In hopes of renting it out while away, he created a Web site called Apartments BA.

“All of a sudden, there was a lot of demand for it,” he recalled.“And I thought,‘Wow, there’s a business here.’ ”

Six weeks later, Koh was subletting three more apartments and drafting a business plan to compete with the five-star hotels blocks away. Starting out as a consultant to prospective buyers, Koh quickly gained a reputation for knowing the intricacies of the Buenos Aires real-estate market. His venture capital investment company, Koh Inversiones, which buys high-end property for foreign clients and then rents them to tourists, opened for business later that year.

“I haven’t met about 30 percent of my clients,” he said. “They hire me over the Internet or through a referral from a friend. Trust is key.”

Many of Koh’s clients haven’t ever seen their properties. “This is just an investment for them,” he said.

So far, it’s been a very good one. Koh said last year his investors enjoyed a rise in property values of 25 percent, and made 10 percent on rental income. What’s the outlook for 2006?

“Strong,” he said.Tourism is at an all-time high — it’s now the country’s third-biggest source of income — and real estate is one of the safest investments in the city. “You have to remember that ever since the crisis, locals don’t put their money in the bank. They buy property. And now you have foreigners discovering what a great place this is.”

“Older folks, especially,” he added. “They love it.”

If it was the thought of growing old and dying in Dallas that moved Koh to travel to Buenos Aires in the first place, it’s the sight of retirees enjoying their lives here that makes him marvel at his new home.

“I’ve been all over the world,” Koh said, “This is one of the only cities where you can go and see senior citizens drinking espressos at three in the morning. Buenos Aires has something for everybody. And it never even snows.”

Just the Facts

Standard Time Zone: GMT -3
Phone codes: 54
Currency: Argentine peso
Entry/Exit Requirements: A valid passport is required for all U.S. citizens, but no visa is required for visits up to 90 days for tourism and business.
Official Language: Spanish
Key Industries: Processing and manufacturing of agricultural goods, automobile manufacturing, oil refining, metalworking and textiles