January 20, 2022 5:38 pm

Rentals: which are the cheapest and most expensive neighborhoods and where prices increased the most in a year

Rental prices continue to rise and begin the year with a cumulative rise of almost 53% during 2021. Thus, an average apartment with two rooms and 50 m² costs $ 46,890 per month. in the Autonomous City of Buenos Aires (CABA). Meanwhile, the supply of real estate remains limited and makes it difficult for tenants to access housing.

According to the monthly report carried out by ZonaProp, the accumulated increase in the last 12 months of new contracts reaches 52.8%: it is slightly above inflation (50.2%) and the adjustment of existing contracts signed a year ago (52.2%).

While the rent of a two-room apartment is almost $ 47,000 per month, with a rise of 3.4% compared to the previous month, a 70 m² three-room unit is rented for $ 65,703 per month. According to the report, the most expensive neighborhoods in Buenos Aires to be a tenant are:

In the middle price zone, there are the following zones:

Meanwhile, the cheapest in the City to rent a property are:

The real estate market scenario in 2021 was characterized by the decrease in the supply of rental properties. According to the report, the number of properties available even today remains limited, with a volume of ads 15% lower than that registered in 2020 and 25% lower than in 2019.

Although rents increased in all Buenos Aires neighborhoods, driven by inflation and low supply, a more micro analysis shows that price increases did not occur in the same proportion in all neighborhoods. In Paternal, they rose 33%, well below the average increase registered in CABA.

In Parque Chacabuco the values ​​increased 43.5% and in Saavedra, 43.6%. Along with Paternal, they are the neighborhoods where rents increased the least. At the opposite extreme, Villa Devoto and Mataderos are the ones that had the highest increase in 2021: prices grew 69.3% and 68.8% respectively.

Profitability remains low

Meanwhile, the rent / price ratio rises slightly and stands at 3.09% per annum. Nowadays, 32.3 years of rental are needed to recover the purchase investment, 24% less than required in December 2020.

The western area of ​​CABA is the one that today is presented as the most attractive for investors, since it has the highest average profitability. According to the report, it is at 3.3% per year, while the northern corridor has the lowest (2.8%). For its level of return, Agronomía (3.7%) and Parque Patricios (3.6%) are the best neighborhoods for those seeking rent.

What about sale prices

According to the ZonaProp report, the average price per square meter in CABA is US $ 2354 and decreases 0.5% compared to November. In 2021, prices accumulated a 7.5% drop, a decrease greater than that reflected in 2020 (7.1%). If the maximum values ​​of 2019 are taken into account, the accumulated decline is 15.9%.

At the same time, there is a fact that shows the crisis that the sector is going through: while in April 2018, 90% of the neighborhoods registered an increase in the sale values ​​of real estate, currently, 88% of the neighborhoods accumulate a monthly decrease in prices.

In this stage, acquiring an average apartment with two rooms and 50 m² costs US $ 122,503 on average and to buy one with three rooms and 70 m² you need US $ 174,538. The report with data for December indicates that 29% of all apartments for sale were slowed down in the last six months. The figure shows a three-month decline in a row and could suggest a slowdown in the pace of decline in sales prices.

The price range in the City finds its maximum value in Puerto Madero (US $ 5566 / m²). It is followed by Palermo (US $ 3,045 / m² and Belgrano (US $ 2,915 / m²). At the other extreme, the lowest values ​​are found in Lugano (US $ 1,131 / m²).


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