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Which is the Buenos Aires neighborhood with the highest profitability for an apartment that is rented temporarily? - La Nacion Propiedades
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En qué barrio conviene comprar un departamento para alquilarlo en forma temporal
Un informe reveló el valor de venta del metro cuadrado en el barrio que defiende el precio más altos de alquiler temporario
www.lanacion.com.ar
February 14, 2024
A report revealed the sales value per square meter in the neighborhood that defends the highest temporary rental prices
The prices of temporary rentals must be measured in comparison with the value of the square meter of purchase
In the midst of a rental market in which temporary workers have gained ground in recent years by charging accommodation per day in dollars, in relation to the low rents provided by traditional contracts (below 5% per year in dollars), great A number of owners invested in equipment and joined the “temporary team.”
“ Temporary rental is a business , because it can be rented in dollars, something that the repealed rental law did not allow for traditional rentals. It also has greater flexibility, since if you want to sell it or need it for personal use or for a family member, you have the possibility of having the apartment more easily and already equipped," analyzes Soledad Balayan, owner of Maure Inmobiliaria and adds the importance of taking into account, within profitability, the initial investment to fully equip it and the replacement of what breaks with use.
The Belgrano area has a great offer of temporary rentals
Now, the big question that arises when thinking about purchasing a property to offer it for temporary rental is: in which neighborhood should it be bought ?
To answer that question, Zonaprop carried out a survey in which it is detailed that although Puerto Madero is the neighborhood with the highest daily values of temporary rentals, it is also the one that defends the value of the most expensive square meter in the city: US$5,697, which is why someone who buys a two-room apartment of, for example, 40 square meters should spend US$227,000 on the property, which could be rented between US$120 and US$135 per day, with a gross annual return of 7.6%.
The neighborhood that surprises
The key fact is that in neighborhoods where buying a square meter is cheaper, profitability levels are considerably higher than in neighborhoods where a square meter is more expensive. When analyzing these values, in the heart of Buenos Aires the San Telmo neighborhood surprises with the profitability of its properties, this historical corner became a protagonist in the real estate game . In it, the value of a temporary rental of a two-room apartment ranges from US$70 to US$80 per day , while the sale price of a property is US$2051/m² on average. In this case, the gross annual return is 12.4%.
San Telmo, the neighborhood that surprises in the equation of m2 purchase value and profitability of a temporary rental
The cobbled streets and historic houses of Buenos Aires are considered an unmatched asset, offering investors the opportunity to obtain high profitability. While the sustained demand for temporary rentals, driven by the historical and cultural beauty of the neighborhood, creates an environment conducive to landlords raising their prices.
Comparison with other neighborhoods
Another of the neighborhoods with the highest price in terms of rents is Belgrano , with up to US$75 per day , and in turn, it is the third most expensive in terms of sales value with US$2,756/m² on average.While in Palermo and Recoleta , an apartment with similar characteristics is published at up to US$70 dollars per day. The big difference is in the sales values, since in the first the square meter is located at US$3019 (the second most expensive, behind Puerto Madero) and in Recoleta the price drops to US$2525/m².
Almagro has values with average prices, that is, the temporary rental of a two-room apartment ranges from US$30 to US$40 per day . In this case, the cost per square meter of a property in the area is US$2015 on average.
Puerto Madero is the neighborhood with the highest price for temporary rentals in CABA, according to ZonaProp, and also for m2 sales.
As for the cheapest options , Parque Chas has apartments with prices ranging from US$330 per month , that is, around US$11 per day , and with a sales price of US$2,165/m² . While a two-bedroom in Villa Santa Rita costs US$370 per month , around US$12 per day , and with a sales value of US$1,809 on average per square meter.
The neighborhoods with the greatest supply and demand for temporary rentals
The Real Estate Monitor, created by Daniel Bryn, surveyed the number of temporary rentals in each of the city's neighborhoods. The study takes Airdna as a source , a site where AirBNB information is published . 70 % of the temporary offer is concentrated in these six neighborhoods: Palermo tops the list with 7,402 posts; Recoleta follows (3147); Saint Nicholas (1401); Belgrano (1125); Retiro (1044) and Monserrat (913).“The main reason why these neighborhoods are chosen is the location : they are looking for quick access to transportation and the possibility of easily reaching entertainment, cultural, gastronomic or social places,” said Daniel Bryn.
The price of each rental varies depending on the quality of the building and the features it offers, such as having a good internet signal, a place that is pleasantly equipped and with good light. The AirBNB rating also has a lot of influence, since if the service is good and generates a good score, it ranks better, which allows it to charge higher prices and gain trust among searching users.
The reasons for choosing areas are very varied depending on each neighborhood; If you are a younger person, probably aim for Palermo , because you know you will find nightlife there ; If you are an older person, you will probably choose something closer to Recoleta and the gastronomic offer and shops that are offered there,” said Jimena Gómez, property manager (administrator of temporary rental properties). Always referring to short terms of a few days or two weeks.
For her part, Soledad Balayan assures that in the case of temporary rentals with a longer period of time , up to three months, the reasons for the search are more linked to other reasons, such as “being close to a university for those who come to study.” postgraduate or undergraduate degree, or the proximity to a hospital or medical institution, when it comes to traveling for some health treatment.”
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