While the expectation now goes through the possibility that the Government repeals the Rental Law, according to a survey carried out based on the notices of the real estate portal Zonaprop, the value of apartments in the City of Buenos Aires continues to fall, although at a slower pace.
In March they fell another 0.5% and in the first quarter of the year they accumulate a drop of 1.2%, lower than that registered in the first quarter of 2022 (1.6%).
The trend of the last few months marks a slight slowdown. In March, the value of a studio apartment is $94,526. On the other hand, an apartment with two rooms and 50 m2 has a value of $113,935. An apartment with three rooms and 70 m2 reaches 160,004 dollars.
According to the College of Notaries of CABA, in February the volume of deeds was 12% higher than in the same month of 2022. In the first two months of 2023, the volume of deeds registered an increase of 22% compared to the volume of the year past. However, it is 14% below what was registered in 2019 and 58% less than in 2018.
The ranking of prices by neighborhood is led by Puerto Madero (5,638 dollars/m2), Palermo (2,918 dollars/m2) and Belgrano (2,711 dollars/m2). The cheapest neighborhoods in the city are Lugano (1,026 dollars/m2), Nueva Pompeya (1,373 dollars/m2) and La Boca (1,464 dollars/m2).
Profitability of real estate in CABA
The rent/price ratio rises slightly and stands at 4.47% per year. In other words, 22.4 years of rent are needed to recover the initial investment. This value is 22% below what was required a year ago.
San Cristóbal and Balvanera are the best neighborhoods for investors looking for income as they have an average return of 5.5% and 5.4% per year, respectively.
On the contrary, Liniers and Villa Devoto are the ones that generate the lowest profitability (3.6% and 3.8%, respectively).
The cheapest and most expensive neighborhoods to rent in CABA
Meanwhile, the prices of rent increased by 8.3% in the month of March. The price increase accelerates, in the last quarter of 2022 the increase was 17.3% and this quarter it reaches a 25.7% increase. In the last 12 months the price rises 118.6%, it is the largest year-on-year increase since the beginning of the series.
The rental value of a studio apartment in the City of Buenos Aires is 96,578 pesos per month, a two-room apartment reaches 116,822 pesos per month and a three-room, 70 m2 unit is rented for 156,078 pesos per month.
At the moment, Palermo it is positioned as the most expensive neighborhood in the City of Buenos Aires with an average price of 148,488 pesos per month. they follow him Chacarita and Villa Ortuzar with 141,183 and 136,564 pesos per month, respectively.
In the middle area are Villa Pueyrredon (114,151 pesos per month), Boedo (111,854 pesos per month) and Villa Gral Miter (106,903 pesos per month).
The cheapest neighborhoods to rent are slaughterhouses (81,992 pesos per month), Liniers (86,953 pesos per month) and forest (90,456 pesos per month).
Source: Ambito
