Argentina residents fight move to sex up their area

BUENOS AIRES (Reuters) - Real estate agents in Argentina are using a property boom as an excuse to sex up an aging Buenos Aires neighborhood with a trendy new name and drive up prices -- but the move is drawing the ire of residents.

Residents of Villa Crespo, a middle-class Buenos Aires neighborhood of aging townhouses, were surprised to find that some real estate agents were renaming their area Palermo Queens to attract investors and demand higher prices.

The real Palermo -- a neighborhood dotted with fashionable restaurants and boutiques -- lies right next to Villa Crespo.

Palermo real estate prices are as much as five times higher per square foot (meter) than prices in Villa Crespo.

"These real estate agents are ... pushing us out of our own neighborhood," said Hugo de Souza, a 50-year-old mechanic, who is considering moving out of his flat after his rent doubled. "They are really hurting people."

This is not the first time desirable Palermo has expanded as surrounding neighborhoods gentrify. Maps show nearby zones called Palermo Hollywood, Palermo Soho and Palermo Chico.

There's even a neighborhood dubbed Palermo Dead. Its real name is Chacarita and it is home to a famous cemetery.

But Villa Crespo residents don't want to become part of the Palermo sprawl, even with the lure of higher property prices.

As apartment buildings take over much of this South American capital, many Buenos Aires neighborhoods are fighting to maintain their old flavor where shopping is done at the local butcher shop, green grocer and fresh pasta store.

"It's about our identity. It's as though you changed Argentina's name to Silverland in hopes the country will improve," said Hugo Tornese, head of Villa Crespo's historic center, who argues changing the name is false advertising.

Argentina's name comes from the Latin word for silver.

A public advocacy group has asked the city to investigate and fine realtors who use the name Palermo Queens to refer to Villa Crespo, a zone of mechanic shops, empty warehouses and home to 89,000 people.

The neighborhood is the latest to feel the pressure of Argentines' rush to invest in real estate.

People look to protect their savings in bricks and mortar, fearing today's economic boom could turn to a bust as it has so often, remembering a deep recession from the late 1990s.

Now, five years of strong economic recovery have been fueled by high commodities prices and a surge in consumer spending. Construction hit a 25-year high last year.

First lady Cristina Fernandez de Kirchner, the clear front-runner in an October 28 presidential vote, has vowed to continue her husband's economic policies. The government expects the economy to grow around 8 percent in 2007.

Real estate agents say the Palermo Queens moniker is just a way of helping homeowners find buyers.

"The reaction has been out of proportion ... We are simply using a fantasy name to help us market the area," said real state broker Horacio Berberian, who has had angry responses from Villa Crespo residents.