Real estate: it takes 19 years of rent to repay the investment

Real estate: it takes 19 years of rent to repay the investment

The rent/price ratio rose and stands at 5.28% annually. Currently it takes 18.9 years of rent to repay the initial investment, 8.9% more than what was required a year ago.

Which are the CABA neighborhoods with the best profitability?

In CABA, the best options to look for rent are Lugano, Nueva Pompeya and Parque Avellaneda. These neighborhoods continue to be on the podium of the best options for investors with a return of 8.7%, 8% and 7.4%, respectively.

On the other hand, Puerto Madero, Palermo and Belgrano are the neighborhoods with the lowest profitability, with 3.5%, 4.2% and 4.4%, respectively.

What is the situation in Greater Buenos Aires

In Greater Buenos Aires west-south the rent/price ratio is 5.54% annually. That is to say, it takes 18 years of rent to repay the purchase investment, 37% less than a year ago.

Piñeiro is positioned as the best neighborhood for investors seeking income, with a gross return of 7.4%. They are followed by Villa Domínico and Santos Lugares with an average of 6.9% and 6.8% gross return each. On the other hand, those with the lowest profitable advantage are Lomas de Zamora (4.5%), Adrogué (4.6%) and Banfield (4.9%).

Meanwhile, in northern GBA the rent/price ratio is 4.71% annually. Currently it takes 21.2 years of rent to repay the initial investment, 26% less than a year ago.

Escobar, San Miguel and Múñiz are the neighborhoods in the area with the highest profitability, with 7.2%, 6.9% and 6.5% of gross return, respectively. On the contrary, La Lucila is the neighborhood with the lowest profitable advantage, with a return of 4.1%. They are followed by Manuel Alberti (4%) and Vicente López (4%).

How much does it cost to rent a two-room apartment?

The average price of rent rose 2.3% in December. In 2024, an increase of 64.4% was recorded, four times lower than that registered in 2023 (260%) and 54 percentage points below inflation (118.1%). This is the first year since 2019 that prices have recorded a real price drop.

A two-room apartment is rented for $550,450 per month, while a single-room apartment is rented for $465,091 per month and a three-room apartment is rented for $740,874 per month.

Source: Ambito

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