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How much does a rental apartment yield compared to other investments in April 2025? - La Nacion Propiedades
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www.lanacion.com.ar
April 11, 2025
In the current global context, is real estate once again positioning itself as a safe haven compared to other financial instruments?
By Candela Contreras
Where is it better to invest: in property or financial assets?Canva
Amid a context of complete uncertainty and volatility due to the turmoil in global markets —with an impact on bonds, stocks, and cryptocurrencies—after the United States announced tariff measures against most countries, many investors began to wonder where to invest their savings and went looking for more profitable alternatives .
“ Most people today are looking to safeguard the value of their savings and ensure security ,” says Jonatan Kon Oppel, an expert in finance and economic education. “Rishier investments have declined, and there has been more demand for more conservative investments,” he adds.
This trend, however, is not uniform . “The way of investing depends greatly on each individual : someone who is retired will prioritize liquidity and security, while someone younger who plans to save for the next 20 years will seek profitability. Therefore, the ideal investment for each person is different ,” Kon Oppel emphasizes.
However, in these turbulent times, many investors are once again looking to real estate as one of the most stable options for protecting their savings . "In times of crisis, real estate assets have maintained attractive and stable returns," says Ramiro Juliá, CEO of Americas Capital.
“ There are neighborhoods where the combination of low purchase prices and high rental demand makes profitability rise sharply ,” says Ezequiel Wierzba, CEO of Clicks Aparts, adding: “If you choose the area and the property well, renting is still a great way to protect your money, generate income, and invest in something concrete for the long term.”
Lugano and Nueva Pompeya top the list of neighborhoods with the best options for investors seeking rental properties, with a return of 8% each. Parque Avellaneda completes the list , with a return of 7.5% . In contrast, Puerto Madero, Palermo, and Belgrano are the neighborhoods with the lowest returns, with 3.6%, 4.2%, and 4.3% , respectively.
In Buenos Aires, the rent/price ratio rises and stands at 5.26% annually.Daniel Basualdo
In concrete terms, the average rent for a studio apartment in Buenos Aires is $509,943 per month. Meanwhile, a one-bedroom apartment rents for $604,905 per month, while a two-bedroom apartment reaches $813,274 per month .
“ Owners who wanted to sell their properties under the rental law —passed in July 2020 and repealed in December 2023— now want to rent again . They see bricks and mortar as more profitable and more peaceful than financial assets, which can be more volatile,” he explains. Today, he assures, “ we're back to a 5% gross annual return ,” and although he admits there are risks—such as the possibility of choosing the wrong tenant—he emphasizes that “contracts are adjusted for inflation” and that “in the future, it's an asset you can leave to your children.”
Kon Oppel agrees that the gross return is between 5% and 6% annually in dollars, citing data from Zonaprop and Informe Inmobiliario, but warns that this figure does not include maintenance costs, taxes, and entry and exit fees such as notary fees or commissions. "When all of that is taken into account, the profitability is lower ," he notes.
In contrast, he explains that " today, Argentine corporate bonds yield between 7% and 8% annually in dollars, and government bonds exceed 10%." For those seeking global diversification, there are international bonds with similar rates but lower local risk.
Balayan emphasizes another key point: “ The traditional real estate investor doesn't need extensive technical knowledge . It's more generational and cultural. The financial market requires more complex technical knowledge.”
“The greater the gap with the official rate, the further away you are from the MEP dollar, and profitability tends to decline,” warns the CEO of Americas Capital, who adds a more global perspective. “ We are in a time of extreme turbulence . When there is instability around the world , people take refuge in gold or real estate . Gold is the most sought-after asset globally, followed by real estate, depending on the specific market.”
As he explains, in the United States—a country currently generating some of this global turbulence—investor behavior is also influenced by interest rates. “If Treasury bills yield 5%, many prefer to rest easy with that. But if, as expected, the recession forces rates to fall, the safe haven will no longer be as attractive, and we will see a migration to real estate ,” he anticipates.
“For three years, there has been little investment in real estate due to the high cost of money, but demand for housing and office space continues . I think a new expansionary cycle is coming : Core assets—safe, stable, low-risk real estate investments—without leverage (without credit or debt) will yield 6-7% annually, and with leverage, they could reach 10% in Class A assets,” Juliá projects.
Analysts agree that bricks and mortar continue to be a good store of value.Shutterstock
In Argentina, the CEO of Americas Capital also sees a capital migration toward real estate . "The Central Bank stopped lending to the government; now it's lending to the private sector, and that's driving genuine business. Stocks and bonds have been falling , so I see investors moving toward harder, safer assets," he says.
However, he clarifies that " rents aren't as good because wages are depressed, and the pesification gap is very unfavorable ." Even so, according to Juliá, the local market is in favorable conditions: "We're heading toward slow but positive growth. I don't expect a boom, but I do expect a moderate rise in prices. An expansionary cycle is coming for real estate , and with 'Liberation Day' (with Trump's new tariff policy), even more so."
In short, he concludes: " While the world goes to gold, the Argentine goes to the dollar in times of instability . "
In the very short term, financial instruments suffer from volatility . "Stocks and bonds have fallen in recent days, so you'd be better off having dollars under your mattress today than you were 10 days ago . But if you invested a few years ago, you earned more with stocks and bonds than with dollars," says Kon Oppel.
And he warns: “ Uninvested dollars lose value every year with inflation . Stocks and bonds , if you hold them long enough and diversify, have always protected purchasing power and the growth of your savings .”
The specialist explains that global stocks are cheaper than they were a few days ago , and bonds offer better interest rates . What's happening around the world helps those who have money to invest. Furthermore, "the recent volatility teaches you what kinds of movements you can expect in your long-term investment portfolio."
Therefore, those who have savings they won't be using in the next few years " can now take advantage of investing and potentially earn better returns over the next few years ." However, it's important to understand that bonds and stocks may or may not fall next year, and that this is impossible to predict.
“Those who plan to hold their investments for several years can achieve good returns and grow their savings for important goals they have,” says Kon Oppel, adding: “This doesn't mean that buying any stock or bond is safe. But investing in a diversified way across numerous stocks and bonds has always protected the value of savings and made them grow.”
When the dollar remains stable and the value of properties in dollars doesn't fluctuate much, salaries in pesos can gain some ground in relative terms. That is, it takes less and less salary (or fewer dollars) to afford a property. But when the dollar rises, everything changes .
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Cuánto rinde un alquiler de departamento frente a otras inversiones en abril 2025
En el actual contexto global, ¿el real estate vuelve a posicionarse como un refugio de valor frente a otros instrumentos financieros?
www.lanacion.com.ar
April 11, 2025
In the current global context, is real estate once again positioning itself as a safe haven compared to other financial instruments?
By Candela Contreras
Where is it better to invest: in property or financial assets?Canva
Amid a context of complete uncertainty and volatility due to the turmoil in global markets —with an impact on bonds, stocks, and cryptocurrencies—after the United States announced tariff measures against most countries, many investors began to wonder where to invest their savings and went looking for more profitable alternatives .
“ Most people today are looking to safeguard the value of their savings and ensure security ,” says Jonatan Kon Oppel, an expert in finance and economic education. “Rishier investments have declined, and there has been more demand for more conservative investments,” he adds.
This trend, however, is not uniform . “The way of investing depends greatly on each individual : someone who is retired will prioritize liquidity and security, while someone younger who plans to save for the next 20 years will seek profitability. Therefore, the ideal investment for each person is different ,” Kon Oppel emphasizes.
However, in these turbulent times, many investors are once again looking to real estate as one of the most stable options for protecting their savings . "In times of crisis, real estate assets have maintained attractive and stable returns," says Ramiro Juliá, CEO of Americas Capital.
Rental yield
In March, according to Zonaprop, the rent-to-price ratio rose to 5.26% annually . Currently, it takes 19 years of renting to repay the initial investment, 11.2% less than what was required a year ago.“ There are neighborhoods where the combination of low purchase prices and high rental demand makes profitability rise sharply ,” says Ezequiel Wierzba, CEO of Clicks Aparts, adding: “If you choose the area and the property well, renting is still a great way to protect your money, generate income, and invest in something concrete for the long term.”
Lugano and Nueva Pompeya top the list of neighborhoods with the best options for investors seeking rental properties, with a return of 8% each. Parque Avellaneda completes the list , with a return of 7.5% . In contrast, Puerto Madero, Palermo, and Belgrano are the neighborhoods with the lowest returns, with 3.6%, 4.2%, and 4.3% , respectively.
In Buenos Aires, the rent/price ratio rises and stands at 5.26% annually.Daniel Basualdo
In concrete terms, the average rent for a studio apartment in Buenos Aires is $509,943 per month. Meanwhile, a one-bedroom apartment rents for $604,905 per month, while a two-bedroom apartment reaches $813,274 per month .
Renting versus other investments
Bricks and mortar have historically been seen as a safe haven. According to Soledad Balayan, real estate market analyst and owner of Maure Inmobiliaria, "this is a good time to return to the rental market ."“ Owners who wanted to sell their properties under the rental law —passed in July 2020 and repealed in December 2023— now want to rent again . They see bricks and mortar as more profitable and more peaceful than financial assets, which can be more volatile,” he explains. Today, he assures, “ we're back to a 5% gross annual return ,” and although he admits there are risks—such as the possibility of choosing the wrong tenant—he emphasizes that “contracts are adjusted for inflation” and that “in the future, it's an asset you can leave to your children.”
Kon Oppel agrees that the gross return is between 5% and 6% annually in dollars, citing data from Zonaprop and Informe Inmobiliario, but warns that this figure does not include maintenance costs, taxes, and entry and exit fees such as notary fees or commissions. "When all of that is taken into account, the profitability is lower ," he notes.
In contrast, he explains that " today, Argentine corporate bonds yield between 7% and 8% annually in dollars, and government bonds exceed 10%." For those seeking global diversification, there are international bonds with similar rates but lower local risk.
Advantages and disadvantages of each option
Investing in bricks
“The advantage of bricks and mortar is that they provide a monthly income , which is useful for people looking for a steady income . And they tend to keep up with local inflation,” says Kon Oppel. But he emphasizes that “ this investment is very expensive to enter and exit , and requires a lot of capital to diversify.” Furthermore, investments in bricks and mortar are illiquid.Balayan emphasizes another key point: “ The traditional real estate investor doesn't need extensive technical knowledge . It's more generational and cultural. The financial market requires more complex technical knowledge.”
“The greater the gap with the official rate, the further away you are from the MEP dollar, and profitability tends to decline,” warns the CEO of Americas Capital, who adds a more global perspective. “ We are in a time of extreme turbulence . When there is instability around the world , people take refuge in gold or real estate . Gold is the most sought-after asset globally, followed by real estate, depending on the specific market.”
As he explains, in the United States—a country currently generating some of this global turbulence—investor behavior is also influenced by interest rates. “If Treasury bills yield 5%, many prefer to rest easy with that. But if, as expected, the recession forces rates to fall, the safe haven will no longer be as attractive, and we will see a migration to real estate ,” he anticipates.
“For three years, there has been little investment in real estate due to the high cost of money, but demand for housing and office space continues . I think a new expansionary cycle is coming : Core assets—safe, stable, low-risk real estate investments—without leverage (without credit or debt) will yield 6-7% annually, and with leverage, they could reach 10% in Class A assets,” Juliá projects.
Analysts agree that bricks and mortar continue to be a good store of value.Shutterstock
In Argentina, the CEO of Americas Capital also sees a capital migration toward real estate . "The Central Bank stopped lending to the government; now it's lending to the private sector, and that's driving genuine business. Stocks and bonds have been falling , so I see investors moving toward harder, safer assets," he says.
However, he clarifies that " rents aren't as good because wages are depressed, and the pesification gap is very unfavorable ." Even so, according to Juliá, the local market is in favorable conditions: "We're heading toward slow but positive growth. I don't expect a boom, but I do expect a moderate rise in prices. An expansionary cycle is coming for real estate , and with 'Liberation Day' (with Trump's new tariff policy), even more so."
In short, he concludes: " While the world goes to gold, the Argentine goes to the dollar in times of instability . "
Investing in bonds and stocks
Unlike real estate, "financial instruments allow you to invest and divest at low costs, across multiple assets and countries. Plus, you can invest small amounts and even sell a portion. In real estate, you can't sell 3% of an apartment ," Kon Oppel summarizes.In the very short term, financial instruments suffer from volatility . "Stocks and bonds have fallen in recent days, so you'd be better off having dollars under your mattress today than you were 10 days ago . But if you invested a few years ago, you earned more with stocks and bonds than with dollars," says Kon Oppel.
And he warns: “ Uninvested dollars lose value every year with inflation . Stocks and bonds , if you hold them long enough and diversify, have always protected purchasing power and the growth of your savings .”
The specialist explains that global stocks are cheaper than they were a few days ago , and bonds offer better interest rates . What's happening around the world helps those who have money to invest. Furthermore, "the recent volatility teaches you what kinds of movements you can expect in your long-term investment portfolio."
Therefore, those who have savings they won't be using in the next few years " can now take advantage of investing and potentially earn better returns over the next few years ." However, it's important to understand that bonds and stocks may or may not fall next year, and that this is impossible to predict.
“Those who plan to hold their investments for several years can achieve good returns and grow their savings for important goals they have,” says Kon Oppel, adding: “This doesn't mean that buying any stock or bond is safe. But investing in a diversified way across numerous stocks and bonds has always protected the value of savings and made them grow.”
Exchange rate volatility and properties
How does exchange rate volatility influence the decision to invest in property? Specialists agree that this is a factor that can affect potential property buyers, especially those who decide to take out a mortgage because properties are sold in dollars, but loans are granted in pesos. This is the key factor that can make someone unable to afford it: if the dollar rises, more pesos will be needed to access the property.When the dollar remains stable and the value of properties in dollars doesn't fluctuate much, salaries in pesos can gain some ground in relative terms. That is, it takes less and less salary (or fewer dollars) to afford a property. But when the dollar rises, everything changes .
www.buysellba.com
