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In a scenario in which little by little the real-estate marketand with the hope that with the announcement by 15 banks of the return of mortgage credit in Argentina, The average publication value of the square meter in the City of Buenos Aires registered the largest monthly increase since April 2018and broke the 1% barrier so far this year, according to the latest Zonaprop report.
In this sense, the publication value increased 1.1% in May, compared to the previous month, and stands at US$2,243, after the increase was 0.8% in April and 0.4% in March.
Regarding the increase so far this year, the average prices per square meter they accumulate a rise of 3% and 4.2% since the trend change in July 2023. Recording that Brand new apartments are the ones that show the greatest increases. This trend can be explained by the increase of the construction costs in dollarswhich is a factor that directly drives the price of brand new units, which was 30% so far in 2024. Building today costs 2.8 times more than it did in October 2020 -the minimum of the series- and 25% above the 2012-2023 period.
At the same time, a key fact to take into account about why the increase in the price of a square meter occurs is that a 56% increase in demand for real estate purchase in the City, compared to May 2023.
In concrete numbers, a 40m² one-bedroom apartment is located in US$99,196 for sale, while one of two rooms and 50m² has a value of US$118,854 and one of three rooms and 70m² costs US$163,338, on average in CABA.
According to the report, in the fifth month of the year, 85% of all the Buenos Aires neighborhoods recorded a monthly increase in sales valueswhile regarding the interannual comparison, 74% presented an increase and 26% maintain the decrease: with Palermo, Colegiales and Villa Crespo in the lead, with 8%, 7.8% and 6.9% increases respectively; while, on the opposite side, Vélez Sarfield (-2.7%), Villa Riachuelo (-3.9%) and Lugano (-5.3%) decreased their sales values.
This way, The cheapest and most expensive are included as follows::
For those who are interested in buying an apartment as an investment and using it for rent, profitability stands at 4.77% annually. Hence, It takes 21 years of rental to recover the investment, 1% less than required a year ago.
In this sense, Lugano continues as the neighborhood with higher percentage of profitability For income-seeking investors, with an average return of 7.3% This is followed by: La Boca (6.4%) and Parque Avellaneda (6.1%). While Palermo (3.9%), Belgrano (4.1%) and Retiro (4.1%) are the ones with the lowest profits.
