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The unexpected Buenos Aires neighborhood where it is worth buying a property to rent because it generates more income than Palermo - La Nacion Propiedades
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El impensado barrio porteño en el que conviene comprar una propiedad para alquilar porque deja más renta que Palermo
La zona es una buena opción para los inversores que buscan propiedades de oportunidad
www.lanacion.com.ar
July 10, 2024
The area is a good option for investors looking for opportunity properties.
By Fernando Torres Ullmer
The La Boca neighborhood is one of the most profitable in the city of Buenos Aires to invest in a rental property
When looking for a property to invest in and make renting it out profitable , you have to analyze all the options, even those that are not usually on the radar . Because although the neighborhoods with the highest rental prices are: Puerto Madero, Palermo and Núñez, they are not the ones that generate the best returns for the owners.
In this sense, there are areas with bargain prices that offer better profits than the top neighborhoods mentioned above. For example, and despite having one of the lowest prices per square meter in the entire Autonomous City of Buenos Aires, La Boca is one of the neighborhoods with the highest profitability : 5.9%.
“It takes 17 years to recover the investment, unlike Belgrano or Palermo, which require 26 years,” says Leandro Molina, director of Zonaprop , and the data is taken from the latest survey carried out by the platform.
With a listed sale price of US$1,526/m², the area is one of the 10 cheapest in the city of Buenos Aires . “ La Boca is far from being a forgotten market, although it is true that, like many other neighborhoods, it does not have an active dynamic without financing or credit . This neighborhood, like all others, also has certain more active sectors, such as those closest to and bordering Parque Lezama and Barracas,” analyzes José Rozados, director of Reporte Inmobiliario.
This is what the markets of La Boca look like in the tourist area of Caminito
In numbers, the index establishes that the average rent in this neighborhood was around $393,202 in June. However, this area, which is one of the most visited by tourists, is the second most profitable after Villa Lugano (6.8%) .
Another surprising fact from the same report is that the profitability of renting a property located in La Boca increased by 14% in one year. While in Puerto Madero, despite defending the highest values on the market, that same profitability fell by 49.3% in the last year and today the margin is around 3.8%. Meanwhile, in Lugano, the neighborhood that “beats” La Boca in rent, it also fell: in this case by 2.6% in one year.
A tavern that reopened, it was called Ribera Sur, now it is La Esquina de mi Barrio, it is located one block from the Bombonera
Looking ahead, industry specialists do not rule out an increase in sales in the football and tango-loving neighbourhood. “ The influence of long-term mortgage loans can be crucial, especially for those who do not have 100% of the capital to buy in cash,” he says.
Another phenomenon in the rental market is that the most sought-after neighborhoods are those that take the longest to recover the investment in a rental property.
The three most expensive neighborhoods in terms of square meters and rent are: Palermo, Puerto Madero and Belgrano; they are also the ones that generate the lowest annual rental return for investors and the ones that take the longest to recover the investment.
Madero Port
The same Zonaprop report that established that Lugano and La Boca are among the most profitable neighborhoods revealed that Palermo is one of those that yields the worst rent: the return is 3.7%. In addition to being the second most expensive neighborhood to rent a two-room apartment ($516,957). “In this neighborhood it takes 26 years to recover the initial investment . However, Palermo had an improvement in the annual variation of 25.5% profitability,” details Molina.
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