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Real estate investment in CABA: why small apartments are increasingly profitable - Infobae
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Inversión inmobiliaria en CABA: por qué los departamentos chicos son cada vez más rentables
Tras la reactivación del mercado, las propiedades de menor superficie se consolidaron como una opción atractiva para inversores, ya que ofrecen un gran potencial de rentabilidad y son una oportunidad clave en el sector
www.infobae.com
November 16, 2024
Following the market recovery, smaller properties have become an attractive option for investors, as they offer great profitability potential and are a key opportunity in the sector.
By Jose Luis Cieri
Sales are recovering in the Buenos Aires real estate market. Specialists argue why it is convenient to buy a small apartment to rent (Illustrative Image Infobae)
The Buenos Aires real estate market has begun to show signs of greater dynamism since the repeal of the Rental Law, the relaunch of mortgage loans and the money laundering process . In this context, investment in small apartments – studios and one-bedroom units – has gained relevance among buyers looking to rent out their properties.
These properties have specific advantages that make them attractive for both investors and those looking for their first property.
Various reports claim that property prices depend primarily on location and surface area. The more square meters a property has, the higher its cost.
"In addition, the value increases if the property is located near shopping centers, schools, parks or means of transportation, factors that attract demand," said to Infobae Lisandro Cuello , a real estate expert who operates mainly in the area of Saavedra and Coghlan, in CABA.
For this reason, those with a tight budget can opt for smaller apartments, which tend to have a more affordable price.
This type of unit allows savings both on purchase and rental, offering an economical alternative for those looking for housing in urban areas.
The profitability that is recovered
After several years of stagnation in rental profitability, smaller properties are showing favorable numbers for those seeking a return in relatively short periods of time.According to a report by Zonaprop, the rent-price ratio rose in October and stood at 4.86% annually. Today, 20.6 years of rent are required to repay the initial investment, 9.5% more than what was necessary a year ago.
Villa Lugano, Parque Avellaneda and La Boca remain on the podium of neighborhoods with the best options for investors looking for income. With a return of 8.5%, 6.3% and 6.2%, respectively. On the other hand, Puerto Madero and Palermo, where housing prices are more expensive, are the neighborhoods with the lowest profitability, with 3.5% and 3.9%, respectively.
Furthermore, studio apartments, traditionally smaller in size, have a higher than average return, reaching up to 5% annually and 8% in the cheapest areas to rent such as Constitución, Liniers, Balvanera, Villa Riachuelo or Parque Patricios, exceeding the profitability of larger units.
High demand in strategic areas
Small apartments (less than 42 square meters) located in areas close to universities, commercial areas and the city's financial center, guarantee constant occupancy.In areas such as Recoleta, Palermo and Núñez, demand is sustained, which ensures that these properties maintain a stable flow of income for their owners.
Daniel Bryn , partner at the consultancy firm Zipcode and who produces Monitor Inmobiliario, said that “the interest in apartments in these key locations allows investors to set competitive prices, guaranteeing quick and long-term occupancy.”
Values
According to Cabaprop, the website of the Buenos Aires Real Estate Association, used studio apartments for sale start at USD 34,000 in neighborhoods such as La Boca and can exceed USD 420,000 in high-value areas such as Puerto Madero, Belgrano and Palermo.Two-room apartments, on the other hand, start at USD 40,000 in Villa Lugano and Pompeya, and reach USD 700,000 in Puerto Madero and Palermo.
Lower maintenance costs
In addition to the benefits of high occupancy, small apartments allow investors to save on maintenance and service costs.Smaller spaces require less investment in furniture, decoration and cleaning. At the same time, their reduced size implies lower consumption of electricity, water and gas, which reduces operating costs for both owners and tenants.
Studio and one-bedroom apartments are ideal for buying and renting (Illustrative Image Infobae)
"These cost savings contribute to improving the overall profitability of these investments, in a context where the price of services is constantly increasing, including expenses," Cuello added.
Flexibility for rental adjustments
Since the repeal of the Rental Law, property owners can adjust their rental prices more frequently, depending on inflation trends.“The regulatory change allows for a more dynamic adjustment of prices, which represents an advantage for investors, who can maintain the profitability of their properties without losing competitiveness in the market,” explained Bryn.
This flexibility is particularly relevant in times of high inflation, as it allows prices to be updated and, consequently, ensures the appreciation of the property.
According to data from Monitor Inmobiliario, there are currently more than 15,300 properties for rent in CABA, which represents a year-on-year growth of 172% compared to the same period in 2023, when only 5,622 properties were counted.
This expansion in supply provides an optimistic outlook for those looking to buy in the sector.
“The combination of high demand, lower initial investment and low maintenance costs makes smaller apartments in Buenos Aires a solid option for investors,” Bryn concluded.
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