There is a giant fabric district in Buenos Aires, Argentina! I found it by accident while taking a bus to the mythical yarn district (more on that later). As a fabric lover who showed up in Argentina with a limited Spanish vocabulary I was thrilled at the amount of “fabrica” stores I was seeing… unfortunately that means factory (tela is fabric), and until that fateful bus ride I hadn’t seen much. This magical stretch of tiendas de tela is along Avenida Lavalle between Junin and Pueyrredón in what I think is the Monserrat neighborhood. There are lots of suiting and fashion fabrics, discount stuff, etc. If you’re a fabric lover in Buenos Aires you should definitely check it out!
The yarn district:
There are a bunch of really awesome looking yarn shops on Avenida Scalbrini Ortiz around the 900 block up near Palermo Hollywood. Unfortunately I went on a Saturday afternoon and literally every single one was closed. Hopefully you’ll have better luck!
Needles, Thread and Love 
Mis Lanitas
The yarn district is awesome! Too bad you were there on a saturday afternoon…some of the stores open on sat but only until 1pm or so. Hope you make it there some day and post your findings here! Make sure you email me at cecilia@mislanitas.com.ar if you need any information, I live in BA and I’m constantly looking for an excuse to go buy some more yarn!!!!
absolutelytrashed
Thanks this was really Helpful!! I can’t wait to check out these places!
Alexis Mayo
I found the yarn district and I was in yarn heaven. They are open on Saturdays until 1pm or so. You have to be careful. They close for holidays that you might not know if you are from outside the country. If you want to see pictures and descriptions go to my blog at mommamayo.blogspot.com. I’ve also put together a long list of knitting and crocheting terms in English and Argentine Spanish on my blog for anybody who needs them for pattern reading.
I particularly like Milana for really nice (although expensive) yarn. I also like Cisne for crocheting cotton thread and shawl pins. Arte Natural is a tiny shop full of unusual yarns for making rugs and lots of buttons and shawl pins. Nube is very large and has a lot of yarn. It can also be very crowded. There are probably another 8-10 shops right there on Scalabrini Ortiz on either side of the intersection with Cordoba in Palermo. I take bus 15 to go there.