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Rentals: the investment that requires almost no maintenance and could double the profit of an apartment today - La Nacion Propiedades
Source:
www.lanacion.com.ar
June 27, 2025
In a context where people are analyzing where to allocate the dollars under their mattress, some investments are more attractive than others.
Those looking to invest and make a guaranteed profit should know the details of this alternative offered by the real estate market.Santiago Cichero/AFV
Following the repeal of the rental law, the revival of mortgage lending , the lifting of restrictions, and the measures announced by the government to encourage Argentines to use their "dollars in their mattresses ," the real estate market picture is changing. The supply of rental properties has grown by 88%, demand for property purchases has increased, and today, 50% more properties are being sold than a year ago. Profitability also shows a different outlook, which, it's worth noting, is more attractive.
But the interest in the profits generated by the real estate market today is not limited to the residential sector, but also extends to the field of commercial premises . This market varies substantially depending on the area in which the property is located, but "in secondary corridors, such as Avenida Alicia Moreau de Justo in Puerto Madero or Medrano and Corrientes, rents are currently around 7%, although in a context of increased consumption they could reach 12% ," notes Marcelo Zuliani, commercial director at Colliers. Compared to the profitability currently generated by an apartment in the city of Buenos Aires, the figure is interesting, as it is much lower: 5.37%, according to Zonaprop values from May of this year.
Rivadavia and Acoyte Avenues are the ones with the highest demand today.Hernan Zenteno - La Nacion
In this context, it's interesting to note that retail prices in major commercial corridors are at historically low prices, both for rent and for sale. "I've rented retail spaces in Florida for US$40,000; today they're under US$10,000," explains Zuliani. The specialist reveals that there's a relationship between consumption and retail prices, given that consumption has decreased, and so have the value of rentals and sales of commercial spaces. "But if consumption recovers over time, the profit for owners will be greater, because rents will rise," he adds.
It's worth adding that brokers emphasize that more and more brands are looking to Argentina as an investment destination. "There are international firms coming to inquire because they want to establish themselves in the country," reveals Marcos Ballario, a broker at LJ Ramos. He adds: "In our case, we see rents between 4% and 5%, but consumption hasn't picked up yet, and if things continue to improve, it would be a good business to look at, research, and invest in."
Furthermore, it is interesting to add to the equation an analysis by Andrés Sicouly, corporate real estate manager at Interwin, who explains that a commercial space appreciates much more than an apartment : “Generalizing is difficult and dangerous, but a commercial space can be worth US$10,000 or US$12,000 per square meter once finished, and you may have bought it at US$4,000 or US$4,500/m² as part of the construction (when it was still three years away from delivery). That is, once the space is finished, it could be worth double .”
Another peculiarity of the commercial space business is that, after the pandemic, the supply of these properties grew in locations that weren't necessarily main thoroughfares . "There's a lot more local consumption; restaurants are becoming popular around beautiful buildings that are being built," explains Sicouly. Ballario points out that some areas are gaining ground and are proving attractive in this market , and among them, he highlights Villa Devoto as a hub that has grown significantly and still has great potential for further development.
Today, regional consumption is growing more and more.Fabian Marelli
"It's a good time to buy commercial properties in the most sought-after areas," Zuliani is emphatic. Indeed, everyone agrees that rents will improve, but consumption will have to increase first. "If purchasing power increases and inflation remains low, consumption will also grow, and these properties will yield more," Sicouly explains.
Today, there has already been some growth in the profitability of commercial premises, since "properties that were rented in pesos are now worth more dollars, due to the strengthening of the peso," explains Sicouly. He also points out that it is a less competitive market; "many people invest in apartments, but fewer people invest in commercial premises." This latter reality is also explained by the fact that these are high-priced investments that yield significant returns with little maintenance, so owners tend not to want to part with them . "A commercial space can be worth between US$5 and US$6 million on Cabildo Street. However, two blocks from Cabildo and Juramento Street, a 11x25 meter space is currently selling for US$2.5 million. It's a property that, a few years ago, might have been worth US$3.5 million, but if consumer spending grows, it could appreciate again," reveals a source.
“ The profitability is higher than that of an apartment , since an apartment has high maintenance costs (for example, if the tenant calls you because the water heater isn't working); but when you rent a commercial space to a company, it's offered 'in the grey', meaning it comes with a window, a smoothed cement floor, and maybe even bathrooms, but the tenant handles the rest,” Zuliani points out, adding that the tenant is responsible for paying the expenses and taxes.
The intersection of Cabildo and Juramento in the Belgrano neighborhood is one of the main commercial arteries of Buenos Aires.Fabian Marelli - LA NACION
"It's maintained by the tenant, who often invests heavily . Furthermore, these are items that typically pay the rent from the first to the fifth of each month, so it's a tangible and secure investment," Sicouly adds.
He explains that there are places where brands need to be if they want to gain a foothold. This is the case of the Libertador corridor, between the tunnel and River Plate , which "has become a showcase for one of the most important brands and, obviously, commands a higher price."
Zuliani points to the Acoyte and Rivadavia corridor in Caballito as the number one in terms of occupancy and demand today. Other highly sought-after areas include Cabildo and Juramento, Santa Fe and Callao, Santa Fe and Pueyrredón, and Santa Fe and Coronel Díaz. Finally, Florida, which previously ranked first in the most sought-after area, now ranks behind all of these.
www.buysellba.com
Source:
Alquileres: la inversión que casi no necesita mantenimiento y podría duplicar la ganancia que deja hoy un departamento
En un contexto en que la gente analiza dónde destinar los dólares bajo el colchón, algunas inversiones se presentan con mayor atractivo que otras
www.lanacion.com.ar
June 27, 2025
In a context where people are analyzing where to allocate the dollars under their mattress, some investments are more attractive than others.
Those looking to invest and make a guaranteed profit should know the details of this alternative offered by the real estate market.Santiago Cichero/AFV
Following the repeal of the rental law, the revival of mortgage lending , the lifting of restrictions, and the measures announced by the government to encourage Argentines to use their "dollars in their mattresses ," the real estate market picture is changing. The supply of rental properties has grown by 88%, demand for property purchases has increased, and today, 50% more properties are being sold than a year ago. Profitability also shows a different outlook, which, it's worth noting, is more attractive.
But the interest in the profits generated by the real estate market today is not limited to the residential sector, but also extends to the field of commercial premises . This market varies substantially depending on the area in which the property is located, but "in secondary corridors, such as Avenida Alicia Moreau de Justo in Puerto Madero or Medrano and Corrientes, rents are currently around 7%, although in a context of increased consumption they could reach 12% ," notes Marcelo Zuliani, commercial director at Colliers. Compared to the profitability currently generated by an apartment in the city of Buenos Aires, the figure is interesting, as it is much lower: 5.37%, according to Zonaprop values from May of this year.
Rivadavia and Acoyte Avenues are the ones with the highest demand today.Hernan Zenteno - La Nacion
In this context, it's interesting to note that retail prices in major commercial corridors are at historically low prices, both for rent and for sale. "I've rented retail spaces in Florida for US$40,000; today they're under US$10,000," explains Zuliani. The specialist reveals that there's a relationship between consumption and retail prices, given that consumption has decreased, and so have the value of rentals and sales of commercial spaces. "But if consumption recovers over time, the profit for owners will be greater, because rents will rise," he adds.
It's worth adding that brokers emphasize that more and more brands are looking to Argentina as an investment destination. "There are international firms coming to inquire because they want to establish themselves in the country," reveals Marcos Ballario, a broker at LJ Ramos. He adds: "In our case, we see rents between 4% and 5%, but consumption hasn't picked up yet, and if things continue to improve, it would be a good business to look at, research, and invest in."
Furthermore, it is interesting to add to the equation an analysis by Andrés Sicouly, corporate real estate manager at Interwin, who explains that a commercial space appreciates much more than an apartment : “Generalizing is difficult and dangerous, but a commercial space can be worth US$10,000 or US$12,000 per square meter once finished, and you may have bought it at US$4,000 or US$4,500/m² as part of the construction (when it was still three years away from delivery). That is, once the space is finished, it could be worth double .”
Another peculiarity of the commercial space business is that, after the pandemic, the supply of these properties grew in locations that weren't necessarily main thoroughfares . "There's a lot more local consumption; restaurants are becoming popular around beautiful buildings that are being built," explains Sicouly. Ballario points out that some areas are gaining ground and are proving attractive in this market , and among them, he highlights Villa Devoto as a hub that has grown significantly and still has great potential for further development.
Today, regional consumption is growing more and more.Fabian Marelli
"It's a good time to buy commercial properties in the most sought-after areas," Zuliani is emphatic. Indeed, everyone agrees that rents will improve, but consumption will have to increase first. "If purchasing power increases and inflation remains low, consumption will also grow, and these properties will yield more," Sicouly explains.
Today, there has already been some growth in the profitability of commercial premises, since "properties that were rented in pesos are now worth more dollars, due to the strengthening of the peso," explains Sicouly. He also points out that it is a less competitive market; "many people invest in apartments, but fewer people invest in commercial premises." This latter reality is also explained by the fact that these are high-priced investments that yield significant returns with little maintenance, so owners tend not to want to part with them . "A commercial space can be worth between US$5 and US$6 million on Cabildo Street. However, two blocks from Cabildo and Juramento Street, a 11x25 meter space is currently selling for US$2.5 million. It's a property that, a few years ago, might have been worth US$3.5 million, but if consumer spending grows, it could appreciate again," reveals a source.
What are the advantages of investing in a commercial space?
The interesting thing about investing in commercial space is that it requires virtually no maintenance costs and secures a tenant for a longer period than an apartment rental , as in some cases, contracts last up to 20 years. "We sold a space with a lease; the investor bought it because there was a bank tenant, with the contract recently renewed for another five years," explains one market specialist.“ The profitability is higher than that of an apartment , since an apartment has high maintenance costs (for example, if the tenant calls you because the water heater isn't working); but when you rent a commercial space to a company, it's offered 'in the grey', meaning it comes with a window, a smoothed cement floor, and maybe even bathrooms, but the tenant handles the rest,” Zuliani points out, adding that the tenant is responsible for paying the expenses and taxes.
The intersection of Cabildo and Juramento in the Belgrano neighborhood is one of the main commercial arteries of Buenos Aires.Fabian Marelli - LA NACION
"It's maintained by the tenant, who often invests heavily . Furthermore, these are items that typically pay the rent from the first to the fifth of each month, so it's a tangible and secure investment," Sicouly adds.
He explains that there are places where brands need to be if they want to gain a foothold. This is the case of the Libertador corridor, between the tunnel and River Plate , which "has become a showcase for one of the most important brands and, obviously, commands a higher price."
Zuliani points to the Acoyte and Rivadavia corridor in Caballito as the number one in terms of occupancy and demand today. Other highly sought-after areas include Cabildo and Juramento, Santa Fe and Callao, Santa Fe and Pueyrredón, and Santa Fe and Coronel Díaz. Finally, Florida, which previously ranked first in the most sought-after area, now ranks behind all of these.
www.buysellba.com
