A new survey of apartment rental prices in seven Buenos Aires neighborhoods sheds some light on overall supply and demand in the temporary rental market popular with many expats and tourists.
The Reporte Inmobiliario analysis of 1,636 temporary apartment rentals in Barrio Norte, Belgrano, Centro, Palermo, Puerto Madero, Recoleta and San Telmo found that the overallaverage price in dollars for monthly rentals is down 15% compared to last year. In the case of weekly rentals, average prices are down 5.7% compared to last year.
The average price for a monthly rental in the City of Buenos Aires is US$700 for a studio, US$960 for a two-room apartment and US$1,095 for a three-room apartment. The most affordable neighborhood of the seven was San Telmo where average prices were US$535, US$730 and US$1,020 for 1, 2 and 3-room units, respectively.
At the opposite end of the affordability spectrum was Puerto Madero where temporary rentals are two to three times more expensive than the other six barrios surveyed. The average price for a monthly rental in Puerto Madero is US$1,040 for a studio, US$2,125 for a two-room apartment and US$3,430 for a three-room apartment.
Average return on investment (ROI) for owners of temporary rentals in Buenos Aires was 4.61% (gross with 50% occupancy) compared to 5.75% this time last year. For units occupied 8 out of 12 months each year, gross ROI is slightly better at 6.18% compared to 7.70% this time last year.
Assuming 67% occupancy, the report says the top 3 barrios based on monthly rental ROI are Puerto Madero (7.70%), Centro (7.40%) and Belgrano (6.41%). The top two barrios in terms of weekly rental ROI are San Telmo (15%) and Puerto Madero (11%). (Full Story in Spanish)
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