South American Real Estate News

Apartment owners in Buenos Aires? where can you get a return of 6% in US dollars

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The rent in the houses of Greater Buenos Aires doubles the average return of the departments in the City of Buenos Aires. In which city areas are buying to rent still a good deal?

According to the latest report prepared by the University of San Andrés and Mercado Libre at the AMBA, in April 2022, there was a 0.5% drop in the median sales price in dollars per square meter of houses and apartments. The year-on-year drop in the case of the departments accumulated a decrease of 7,5%.

But, while the prices of properties for sale fall, rental values are rising. The houses in the north zone lead the ranking of high prices as a result of growing demand in search of outdoor areas and with the presence of green.

Now, has the top of the price decline been reached? Taking the AMBA zone as a reference, the greatest drop in year-on-year price was registered in houses in Greater Buenos Aires North.

“This result is explained by a drop in demand since, between April 2021 and April 2022, the number of contacts to houses for sale in North GBA fell 33.8%. Consequently, the drop in prices appears to reflect a response by owners to recover some of the lost demand,” the report explains.

PROFITABILITY

The return on the housing market in the City of Buenos Aires is 4.3%. Now, regarding the departments, the return is 3.2%

“The profitability of houses in North GBA increased considerably after the sanction of the rental law in June 2020. This was due to multiple factors. Among them, the supply of houses for rent fell significantly while at the same time the supply of houses for sale increased “, they explain from the University of San Andrés.

“Between July 2020 and October 2020, in North GBA, the supply of houses in rent fell 53.2% while the supply of houses for sale increased by 14.1%. Consequently, the rental price increased dramatically and at the same time, the sale price of houses fell. Both of these effects led to an increase in the profitability of houses in GBA North .”

DROP IN PRICES, NEIGHBORHOOD BY NEIGHBORHOOD

The largest year-on-year drop in the sale price per m2 of houses occurred in Floresta, with a drop of 11%.

On the other hand, for departments, the greatest fall is observed in Villa Santa Rita, with a deceleration of 21.9%.

On the other hand, within GBA (excluding CABA neighbourhoods), the municipality that registered the greatest drop in sales price per m 2 of houses was Pilar (14.5%); in the case of the departments, the greatest fall occurred in La Plata (11.5%).

Source: El Cronista

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