Cars and profitability: how much does it cost to buy or rent a garage in Buenos Aires and which areas lead the demand

Sucari considered that this segment lagged behind the housing segment. “In recent years, properties appreciated in general, but garages, which depend on a smaller market, moved little. Today there is a possibility of strong appreciation because new lots are not being added to make garages,” he said.

The specialist highlighted that the market rebound coincides with a record number of car registrations, which increases demand. He said: “There are more cars than spaces. That equation generates pressure on prices and opens an opportunity for those looking to invest in a physical good with sustained profitability.”

Sucari specified that a finished garage can be purchased from US$15,000while those sold “in pit” cost between US$25,000 and US$35,000driven by the rising cost of construction in dollars. In areas like Núñez, a fixed covered garage is rented between $200,000 and $250,000while the average expenses are between $30,000 and $35,000with larger peaks in premium buildings.

The director of Ecocheras also differentiated the areas with the highest profitability: “I do not recommend investing in Monte Castro or the downtown area, where profitability is lower and resale slower. On the other hand, in Palermo, Belgrano or consolidated middle class neighborhoods there is purchasing power to validate higher values.”

Constant demand and limited supply

Vanesa Armestohead of the homonymous real estate company and member of the Porteño Real Estate Association, pointed out that “the garage market has once again positioned itself as an attractive segment within the Buenos Aires real estate field.” He highlighted that the combination of growth in the vehicle fleet, lack of surface parking and the search for greater security drove constant demand in residential neighborhoods.

“For those who have savings, it is an investment with a low initial cost, with little maintenance and a reasonable profitability. It is an accessible alternative to other high ticket real estate assets,” he explained.

In neighborhoods like Caballito, Almagro, Boedo and Floresthe rentals of a fixed covered garage are located between $110,000 and $150,000with higher peaks in areas near main avenues or shopping centers. He detailed: “Interest is concentrated especially near the axes of Rivadavia, La Plata and Carabobo avenues, where traffic is intense and building density is high. There, having a garage became a differential and a safeguard of value,” he explained.

Armesto added that demand pressure is felt more strongly in old buildings without their own parking or in areas with strong commercial and educational activity, where parking on public roads is almost impossible. “During the last decade, the city lost a large number of traditional garages. Many garages were converted into stores, warehouses or homes. In parallel, the expansion of public transportation and restrictions in the downtown area reduced the profitability of classic parking lots.”

What to look for before signing a contract

Although the garage contract is simpler than the housing contract, specialists recommend clearly defining certain points to avoid conflicts. In general, they are signed by 12 monthswith adjustments quarterly due to inflation or according to what the parties agree to. It must also be specified if the space is fixed or mobile, covered or uncoveredand what services are included.

Sucari warned that it is key to review the co-ownership regulations of the building where the garage is located. “It must be clear who assumes the payment of expenses, coverage for possible accidents and what restrictions exist on the use of the space. It is a more agile contract, but it requires precision,” he indicated.

Values ​​in the most sought after areas

According to the operators consulted, these are the reference values ​​in the City:

• Palermo, Belgrano and Recoleta: between US$20,000 and US$35,000 for sale and $130,000 to $180,000 for rent.

• Caballito, Almagro, Boedo and Flores: between US$15,000 and US$25,000 and rentals $110,000 to $150,000.

• Villa Urquiza, Saavedra and Colegiales: from US$18,000with rents that are around $120,000 monthly.

• Núñez and Palermo Chico: higher prices, between US$25,000 and US$40,000with incomes that can exceed $200,000.

Performance and outlook

For Marcela Gentaby Marcela Genta Inmobiliaria, the ideal rent for a garage is between 7% and 8% annuallyalthough it depends on the location and type of building. “To be profitable, a garage valued at US$25,000 should be rented around $170,000 monthly,” he explained.

Garages Real estate market.jpg

The conversion of old garages into homes and commercial premises reduced supply, putting pressure on purchase and rental prices.

Ecocheras

Genta stressed that in new buildings construction companies are obliged to include garages, but that it is not always a profitable business. He maintained: “The average lots in Buenos Aires are 8.66 meters wide, which limits the number of possible spaces. Therefore, even if garages are planned, supply does not grow at the pace of demand.”

He considered that, in the current context, buying a garage for individual rental may be more advantageous than investing in an exclusive building. “If you buy an apartment with a garage, the income improves. On the other hand, a building with pure garages requires more management and does not always achieve the same margins,” he stated.

Going forward, operators agree that demand will remain firm as long as the vehicle fleet continues to expand and new developments maintain their shortage of spaces. In a context of more moderate inflation and the search for real investments, garages are once again gaining prominence in the City.

“It is a market that was asleep and today is beginning to wake up,” Sucari concluded. “There are still buying opportunities before prices follow the rest of the real estate rise.”