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Rentals: The 2 Buenos Aires neighborhoods in which it is advisable to buy a property for the price and the income it leaves - La Nacion Propiedades
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Alquileres: los 2 barrios porteños en los que conviene comprar una propiedad por el precio y la renta que deja
La renta bruta anual que deja un departamento usado se ubica en promedio cerca del 4% pero hay dos barrios que superan el 5%
www.lanacion.com.ar
March 16, 2024
The gross annual income left by a used apartment is on average close to 4%, but there are two neighborhoods that exceed 5%.
By Candelaria Reinoso Taccone
Parque Patricios is one of the most profitable neighborhoods in the city of Buenos Aieres, a green lung around which new ventures are continually generated.
During the beginning of 2024, two Buenos Aires neighborhoods in the south of Buenos Aires stood out as the most profitable to rent used apartments . Parque Patricios and San Cristóbal , adjacent to each other, became areas of great interest due to their recent transformations and real estate potential.
When comparing the apartments available for formal rental in pesos with the equivalent units offered for sale in each neighborhood of the city, Parque Patricios showed a profitability of 5.41% in the case of the three environments, while San Cristóbal registered a 5.41%. 43% for four-bedroom units, according to the Real Estate Report report.
The San Cristobal neighborhood leaves an annual profitability of 5.43% for four-room units.
Parque Patricios, for some time now, has been the epicenter of an urban metamorphosis that knew how to adopt the concept of “living 15 minutes from everything .” With its focus on strat up companies and real estate developments aimed at digital nomads, this neighborhood was consolidated as a new Technology District enhanced by the transfer of the headquarters of the City Government to the neighborhood.
San Cristóbal, for its part, joins the list of emerging neighborhoods in Buenos Aires that were off the radar of many Buenos Aires residents and slowly began to position themselves as good options for those looking for a place to live. Neighbor to Boedo, this historic neighborhood , with its roots dating back to 1869 as an area of villas, is now in the spotlight of developers and home seekers alike for its combination of tranquility, accessibility and real estate growth.
Profitability increases and stabilizes
Patricios Park became the epicenter of an urban metamorphosis.
These percentages occur in a context where the gross annual rent of used apartments grew slightly in relation to the same month of the previous year , since at the beginning of 2023 the general average was 3.48% per year, while at the beginning of this year the average was 3.94%.
If the distinction is made between typologies, the units that left the most income were the three-room apartments , with an annual gross average of 3.98%, while the two- and four-room apartments were at 3.97%. In the case of studio apartments , this typology gave the lowest profitability with an average of 3.83%.
Parque Patricios showed a profitability of 5.41% in the case of the three environments.
“We must consider that this profitability is what is obtained in the first month of the start of the rental and that now, from the DNU that repealed the rental law , it will depend on the agreed update rate so that it is maintained or diluted if The purchase and sale value of the property is considered stable,” explains Germán Gómez Picasso, founder of Reporte Inmobiliario .
The specialist indicates that, by resorting mostly to adjustments in shorter periods in the new rental contracts, income stability could be better maintained . This would make the investment somewhat more attractive for those thinking about buying to rent. “Previously, with the rental law that prohibited updating before the year and then every six months, a decrease in the real rental price and a considerable reduction in profitability was quickly generated , especially in a context of high inflation,” mentions Gómez. Picasso.
Is it worth investing in these neighborhoods?
Parque Patricios and San Cristobal have low sales values compared to other neighborhoods in the city.
A key fact regarding this phenomenon is that the most profitable neighborhoods are not always those chosen by investors when purchasing a property . The explanation lies in the fact that these neighborhoods have a low sales value. For example, in January, Parque Patricios averaged around US$1,388/m² for three-bedroom units, while San Cristóbal was at US$1,523/m² for four-bedroom units. In comparison, the average sale of a three- and four-bedroom apartment in the city of Buenos Aires is US$1,719 m² and US$1,679/m², respectively.
This makes them less attractive to investors , since, as Gómez Picasso points out, “in times of crisis, sales values in these areas tend to recover more slowly.” He explains that this phenomenon is based on the first axiom of the real estate market: location. “ The greater the risk, the greater the profitability .” Investors generally prefer to obtain a lower return in a prime location because they know that the property is more liquid, that is, easier to sell when they want to sell, and its value does not depreciate as much in times of crisis , in addition to the fact that "It recovers more quickly," says the specialist.
Neighborhoods like Almagro are highly sought after due to their proximity to Caballito and their attractive prices.
Another investment alternative, with prices slightly higher than those of Parque Patricios and San Cristobal but still below the most exclusive areas, is found in adjacent neighborhoods such as Almagro . Here, property values are recovering after a three-year period of decline. The average rent for a three-bedroom apartment in Almagro is $450,000 per month, while its sale value is slightly above the average , around US$1,797/m².
"Almagro is an area highly sought after by buyers , because on the one hand it is a traditional neighborhood with tango history, a good transportation option due to its central location and educational, commercial and cultural infrastructure. It is highly sought after due to its proximity to the benefits offered by Caballito and Palermo with more attractive prices ,” says Maria Inés Kries, commercial manager of Newland.
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