According to a Zonaprop report, the prices of rental apartments increased above inflation and the adjustment of existing contracts
For iProfessional
04/01/2023 – 9:20 p.m.
The increase in rents was almost 100% in CABA during 2022, an increase that is above inflation (97%) and significantly above the adjustment of existing contracts, according to a survey carried out based on the notices of the real estate portal, Zonaprop.
In the last quarter of the year, the accumulated amount was 17.3%, which implies a slight slowdown compared to Q3 (22.7%). However, the price variation registered in the last 12 months is the maximum since the beginning of the Zonaprop Index (2012).
In the month of December, the increase was 5.5%. The rental value of a studio apartment in CABA is $77,899 per month, a department of two rooms costs $92,941 per month and a unit with three rooms and 70 m2 is rented for 125,664 pesos per month.
The cheapest and most expensive neighborhoods
At the moment, Puerto Madero is positioned as the most expensive neighborhood in the City of Buenos Aires with an average price of 180,448 pesos per month. Palermo and Nuñez follow with 111,656 and 106,790 pesos per month, respectively.
In the middle zone are Villa Gral Miter (92,462 pesos per month), Monte Castro (89,038 pesos per month) and San Cristobal (86,905 pesos per month).
The rental price increases in CABA and falls for buying and selling.
The cheapest neighborhoods to rent They are Floresta (71,940 pesos per month), Liniers (73,056 pesos per month) and Barracas (73,389 pesos per month).
Buy-sell market: prices fell by 6.6% in the year
the market of purchase-sale in the City of Buenos Aires accumulated a fall of 6.6% in 2022, there is a slowdown in the decline compared to the values of 2020 and 2021, according to Zonaprop. Since the maximum of 2018, prices have accumulated a drop of 21.5% and are close to the levels at the beginning of 2016.
The The price of a square meter of an apartment in CABA is located at 2,199 dollars, decreasing 0.4% compared to the previous month.
The value of a studio apartment is $95,526. On the other hand, an apartment with two rooms and 50 m2 has a value of $115,215. An apartment with three rooms and 70 m2 reaches 161,968 dollars.
The volume of downward repriced apartments in January was 34% and is currently 26%. In addition, the average discount made was 8.3% at the beginning of the year and is now 7.9%. This shows a slowdown in the decline in prices, driven by the large stock of real estate, which expects a market recovery by 2023.
The price ranking by neighborhood is headed by Puerto Madero (5,585 dollars/m2), Palermo (2,925 dollars/m2) and Belgrano (2,734 dollars/m2). The cheapest neighborhoods in the city are Lugano (1,019 dollars/m2), Nueva Pompeya (1,409 dollars/m2) and La Boca (1,510 dollars/m2).
Corredor Norte and Macrocentro are the areas that registered the greatest resilience in 2022.
Real estate profitability closes the year at 4.19%
The rent/price ratio increases slightly and stands at 4.19% per year. In other words, 23.9 years of rent are needed to recover the initial investment. This value is 26% below what was required a year ago.
Puerto Madero is the most expensive area to rent and buy in CABA.
La Boca and Villa Gral Miter are the best neighborhoods for investors looking for income as they have an average return of 5.4% and 5.2% per year, respectively. On the contrary, Puerto Madero and Barracas are the ones that generate the lowest profitability (3.2% and 3.6%, respectively).
