Property sales prices in Buenos Aires had the largest increase in 6 years

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The average square meter value in the publications of the units in CABA registered the largest monthly increase in the last six years.

In a scenario in which the real estate market is gradually being reactivated, and with the hope that with the announcement by 15 banks of the return of mortgage credit in Argentina, the average publication value of the square meter in the City of Buenos Aires recorded the most significant monthly increase since April 2018, and broke the 1% barrier so far this year, according to the latest Zonaprop report.

In this sense, the publication value increased by 1.1% in May, compared to the previous month, and stands at US$2,243, after the increase in April was 0.8% and in March it was 0. 4%.

Regarding the increase so far this year, the average prices per square meter have increased 3% and 4.2% since the change in trend in July 2023. Recording that brand new apartments are the ones with the highest go up This trend can be explained by the increase in construction costs in dollars, which is a factor that directly drives the price of brand new units, which was 30% so far in 2024. Building today costs 2.8 times more than it cost in October 2020 – the minimum of the series – and 25% above the 2012-2023 period.

At the same time, a key fact to consider about why the price per square meter has increased is that the portal recorded a 56% increase in demand for real estate in the City compared to May 2023.

In concrete numbers, a one-room, 40m² apartment costs US$99,196 for sale, while a two-room, 50m² apartment has a value of US$118,854 and a three-room, 70m² apartment costs US$163,338, on average in CABA.

The most expensive and cheapest neighbourhoods to buy

According to the report, in the fifth month of the year, 85% of all Buenos Aires neighbourhoods registered a monthly increase in sales values, while in terms of the interannual comparison, 74% presented an increase and 26 % remains low, with Palermo, Colegiales and Villa Crespo in the lead, with 8%, 7.8% and 6.9% increases respectively; while, on the opposite side, Vélez Sarfield (-2.7%), Villa Riachuelo (-3.9%) and Lugano (-5.3%) decreased their sales values.

In this way, the cheapest and most expensive are included as follows :

The most expensive neighbourhoods to buy a house

  • Puerto Madero: US$5891/m²
  • Palermo: US$3147/m²
  • Belgrano: US$2868/m2

The cheapest neighbourhoods to buy a house

  • Price: US$976/m2
  • New Pompeya:: US$1,366/m²
  • Villa Riachuelo: US$1446/m2

The neighbourhoods with average values ​​in CABA

  • Saavedra: US$2349/m²
  • Parque Chacabuco: US$2037/m²
  • Paternal: US$1953/m²
  • Agronomía: US$1916/m²
  • Villa Real: US$1776/m²

Investment Property

For those interested in buying an apartment as an investment and using it for rent, the profitability is 4.77% annually. Therefore, it takes 21 years of rental to recover the investment, which is 1% less than what was required a year ago.

In this sense, Lugano continues to be the neighbourhood with the highest profitability percentage for investors seeking income, with an average return of 7.3%. This is followed by: La Boca (6.4%) and Parque Avellaneda (6.1%). %). Palermo (3.9%), Belgrano (4.1%), and Retiro (4.1%) have the lowest profit percentages.

Source: La Nacion

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