Buenos Aires, Argentina: rental yields poor

November 14, 2018

Last Updated: Nov. 14, 2018
RECOLETA APARTMENTS YIELD (p.a.)
TO BUY (USD) MONTHLY RENT (USD)
1-BR sq.m. 154,953 370 2.87%
2-BR sq.m. 180,672 373 2.48%
3-BR sq.m. 326,373 705 2.59%
4-BR sq.m. 473,200 940 2.38%
PUERTO MADERO APARTMENTS
1-BR sq.m. 235,000 633 3.23%
2-BR sq.m. 439,223 896 2.45%
3-BR sq.m. 875,617 1,564 2.14%
4-BR sq.m. 1,479,972 n.a. n.a.
PALERMO APARTMENTS
1-BR sq.m. 126,552 371 3.52%
2-BR sq.m. 172,283 461 3.21%
3-BR sq.m. 313,681 723 2.77%
4-BR sq.m. 581,739 804 1.66%
PALERMO CHICO APARTMENTS
1-BR sq.m. 168,000 336 2.40%
2-BR sq.m. 297,656 453 1.83%
3-BR sq.m. 491,472 846 2.07%
4-BR sq.m. 1,174,125 n.a. n.a.
LAS CAÑITAS APARTMENTS
1-BR sq.m. 119,461 298 2.99%
2-BR sq.m. 213,815 464 2.60%
3-BR sq.m. 337,661 779 2.77%
4-BR sq.m. 471,138 1,138 2.90%
NUÑEZ APARTMENTS
1-BR sq.m. 160,698 330 2.46%
2-BR sq.m. 165,875 443 3.20%
3-BR sq.m. 267,925 664 2.97%
4-BR sq.m. 453,682 692 1.83%
BELGRANO APARTMENTS
1-BR sq.m. 131,740 334 3.04%
2-BR sq.m. 175,004 415 2.85%
3-BR sq.m. 282,737 532 2.26%
4-BR sq.m. 469,345 777 1.99%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: ZonaProp Definitions: Data FAQ See also: Update Schedule

Gross rental yields on apartments in Buenos Aires are poor, especially by the standards of the continent (yields in Latin America tend to be high). The typical gross rental yield on an apartment in Buenos Aires - the rental return earned on the purchase price, before taxation, vacancy costs, and other costs - isn´t something that will attract foreigners to invest, even if they could get a mortgage in Argentina, which they won´t be able to.  

Yields on apartments in Buenos Aires range from 1.8% to 3.5%. As always, rental yields are higher on smaller apartments. Given that a typical landlords´ expenses are around 2% per annum in maintenance, repairs, empties, etcetera, this means that many landlords will effectively earn nothing.

Round trip transaction costs are quite high in Argentina (i.e., the total costs of buying and selling a property).  See our Argentina residential transaction costs analysis and Residential transaction costs in Argentina compared to the rest of Latin America.

 

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