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Rental yields in Buenos Aires currently range from 4% to 9% depending on property type and location, with studios and smaller apartments offering the highest returns. As of September 2025, the Buenos Aires property market is experiencing a rebound with rising yields and increased foreign investment after the recent economic reforms.
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Buenos Aires rental yields vary significantly by neighborhood and property type, with studios achieving 8-9% gross yields while luxury properties in Puerto Madero deliver 3.5-4%. Emerging neighborhoods like Villa Crespo and Almagro offer attractive 4.6-4.7% yields with strong growth potential.
Net yields after expenses typically range from 3-5%, making Buenos Aires competitive with other major Latin American cities for property investment returns.
| Neighborhood | Average Yield | Monthly Rent (USD) | Price per m² (USD) |
|---|---|---|---|
| Palermo | 4.5-5.8% | $655 | $3,500-4,300 |
| Recoleta | 4.0-5.5% | $614 | $3,500-4,300 |
| San Telmo | ~5% | $565 | $2,100-2,800 |
| Puerto Madero | 3.5-4% | $994 | $5,000-6,500 |
| Villa Lugano | ~6.5% | $425 | $1,500-1,800 |
| Villa Crespo | 4.6-4.7% | $510 | $2,400-3,000 |
| Belgrano | 3.8-5% | $590 | $3,200-3,800 |
What are the current average rental yields in Buenos Aires for different property types?
Rental yields in Buenos Aires vary significantly based on property type and size, with smaller units delivering higher percentage returns.
Studios consistently offer the highest gross rental yields, ranging from 8% to 9% citywide due to strong demand from young professionals and expats. One-bedroom apartments typically achieve yields between 6% and 7%, while larger two-bedroom units deliver similar returns of 6-7%.
Three-bedroom apartments and larger properties generally produce lower yields of 4.5% to 6.5%, though they generate higher absolute rental income. The trade-off between yield percentage and total rental income becomes apparent as property size increases.
As of September 2025, the Buenos Aires apartment market has recovered from the pandemic downturn, with gross yields averaging 5.98% compared to 4.64% in 2023. This improvement reflects both rising rental demand and stabilized property prices following recent economic reforms.
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How do rental yields vary between the main neighborhoods and districts of Buenos Aires?
Neighborhood selection dramatically impacts rental yields, with emerging areas offering higher returns than established luxury districts.
Palermo delivers yields between 4.5% and 5.8%, with average monthly rents of $655 and purchase prices of $3,500-4,300 per square meter. Recoleta, another premium neighborhood, offers slightly lower yields of 4.0% to 5.5% with similar pricing structure.
San Telmo provides approximately 5% yields with more affordable entry points, while Villa Lugano in the outer districts achieves the highest yields at around 6.5% due to lower property prices averaging $1,500-1,800 per square meter.
Puerto Madero, the luxury waterfront district, produces the lowest yields at 3.5% to 4% despite commanding the highest rents of $994 monthly. However, this premium location offers superior capital appreciation potential and attracts high-quality tenants.
Villa Crespo and Almagro represent the sweet spot for yield-focused investors, delivering 4.6% to 4.7% returns with strong rental demand and moderate purchase prices of $2,400-3,000 per square meter.
What is the breakdown of yields based on property size and surface area?
| Property Size | Average Size (m²) | Monthly Rent (USD) | Price per m² (USD) | Gross Yield (%) |
|---|---|---|---|---|
| Studio | 40 | $424 | $10.6 | 8-9% |
| 1-Bedroom | 50-60 | $550 | $9-11 | 6-7% |
| 2-Bedroom | 70 | $682 | $9.7 | 6-7% |
| 3-Bedroom | 100+ | $1,200 | $12+ | 4.5-6.5% |
| Large Apartment | 150+ | $1,500+ | $13+ | 4-6% |
What are the average purchase prices including fees for different types of properties?
Property purchase prices in Buenos Aires include significant additional costs that investors must factor into their calculations.
The citywide average purchase price ranges from $2,300 to $2,500 per square meter, but premium neighborhoods command substantially higher prices. Palermo and Recoleta properties cost between $3,500 and $4,300 per square meter, while Puerto Madero luxury units reach $5,000 to $6,500 per square meter.
Emerging neighborhoods offer more accessible entry points, with properties in Villa Crespo, Almagro, and similar areas priced between $2,600 and $3,300 per square meter. These areas provide the best balance between purchase price and rental yield potential.
Acquisition costs add 7% to 10% to the base purchase price, including taxes, legal fees, agent commissions, notary fees, registration costs, and currency conversion charges. For a $200,000 property, expect total costs between $214,000 and $220,000.
Stamp duty alone accounts for 2.5% to 3.6% of the sale price, while agent commissions typically split 3% to 4% between buyer and seller. These upfront costs significantly impact initial investment requirements and should be included in yield calculations.
What taxes, ongoing costs, and mortgage expenses should be factored in when calculating yields?
Ongoing expenses substantially reduce gross rental yields, making accurate cost calculation essential for realistic return expectations.
ABL property tax represents the largest recurring expense, ranging from 0.5% to 1.2% of the property's fiscal value annually. This municipal tax varies by neighborhood and property characteristics, with premium areas typically facing higher rates.
Monthly maintenance costs average $1 to $2 per square meter, covering building upkeep, security, and common area expenses. Property management fees, if used, typically consume 8% to 10% of rental income.
Insurance premiums, utility connections, and periodic repairs add another 0.5% to 1% of property value annually. Vacancy periods and tenant turnover costs can reduce effective rental income by 5% to 10% depending on market conditions and property location.
Mortgage financing, while returning to the Buenos Aires market, often carries higher interest rates than developed markets. Cash purchases remain preferred by many investors due to more favorable pricing and simplified transaction processes.
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How do short-term rental yields compare to long-term rental yields?
Short-term rentals through platforms like Airbnb generally deliver 1% to 2% higher gross yields than traditional long-term leases, but require more active management.
Buenos Aires short-term rentals average ARS8M (approximately $9,000) in annual revenue with median occupancy rates of 66%, translating to roughly 241 booked nights per year. This performance typically exceeds long-term rental yields, especially in central tourist districts like Palermo and San Telmo.
Long-term rentals offer more predictable income streams with lower vacancy risk and reduced management requirements. Traditional leases provide consistent occupancy rates above 90% in popular neighborhoods, though at lower per-night rates.
Short-term rental success depends heavily on location, with properties near tourist attractions, restaurants, and nightlife commanding premium rates. However, these properties face higher turnover costs, cleaning expenses, and potential regulatory changes that could impact profitability.
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Can you give example rental yield calculations for different types of properties?
Real-world examples demonstrate how property size and location affect actual rental yields in Buenos Aires.
A studio apartment in Palermo purchased for $120,000 generating $665 monthly rent produces $7,980 annually. This creates a gross yield of 6.65% ($7,980 ÷ $120,000). After deducting 2% for ongoing expenses, the net yield drops to approximately 4.65%.
A two-bedroom apartment in Recoleta costing $205,000 with monthly rent of $1,064 generates $12,768 annual income. The gross yield calculation shows 6.23% ($12,768 ÷ $205,000), while net yield after expenses reaches about 4.5%.
A luxury three-bedroom unit in Puerto Madero purchased for $350,000 earning $1,400 monthly rent ($16,800 annually) delivers a gross yield of 4.8%. However, higher maintenance costs and property taxes reduce the net yield to approximately 3.2%.
These examples illustrate how smaller properties in good neighborhoods often outperform larger luxury units on a percentage basis, though absolute income amounts favor larger properties.
What are the typical profiles of renters in Buenos Aires?
Understanding tenant demographics helps investors target the right property types and neighborhoods for optimal rental performance.
Expatriate professionals represent a key tenant segment, favoring furnished one- and two-bedroom apartments in prime areas like Palermo and Recoleta. These renters pay premium rates for convenience, modern amenities, and flexible lease terms, often preferring short-term or furnished arrangements.
Local students and young professionals prioritize affordability and proximity to universities or business districts. They typically seek shared accommodations or compact studios with good public transportation access, making neighborhoods like Villa Crespo and Almagro attractive.
International tourists form the short-term rental market, concentrating in central districts with attractions, restaurants, and nightlife. They willingly pay higher nightly rates for location convenience and furnished accommodations with tourist-friendly amenities.
Corporate relocations and diplomatic personnel create steady demand for larger, well-appointed properties in secure neighborhoods. These tenants often sign longer leases and maintain properties well, though they represent a smaller market segment.
Local families seeking quality housing in safe neighborhoods drive demand for larger apartments in residential areas like Belgrano and Núñez, though rental rates remain more modest than expatriate-focused districts.
What are the current vacancy rates, and how do they vary by property type and area?
Vacancy rates in Buenos Aires vary significantly between short-term and long-term rental markets, with location playing a crucial role in occupancy performance.
Short-term rentals average 66% occupancy citywide, with properties typically booked for 241 nights annually. This means roughly one-third of nights remain unoccupied, requiring careful pricing and marketing strategies to maximize revenue.
Long-term rental vacancy rates remain below 8% in popular neighborhoods like Palermo, Recoleta, and San Telmo due to strong expatriate and professional demand. These areas benefit from established rental markets and diverse tenant pools.
Peripheral neighborhoods and oversupplied areas may experience vacancy rates approaching 10% to 12%, particularly for properties lacking modern amenities or convenient transportation access. These higher vacancy rates partly offset the lower purchase prices in outer districts.
Furnished apartments generally maintain lower vacancy rates than unfurnished units due to expatriate demand, while properties targeting local renters may face longer leasing periods but enjoy more stable, long-term occupancy.
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What is the step-by-step breakdown from top-line rent to gross yield to net yield after expenses?
Understanding the progression from gross rental income to actual investor returns reveals the true profitability of Buenos Aires property investments.
Step 1: Calculate annual rental income by multiplying monthly rent by 12. For example, $1,200 monthly rent generates $14,400 annual income before any deductions.
Step 2: Determine gross yield by dividing annual rent by total purchase price including acquisition costs. Using a $255,785 total investment, the gross yield equals 5.63% ($14,400 ÷ $255,785).
Step 3: Subtract operating expenses including ABL property tax (0.5-1.2% of fiscal value), management fees (8-10% of rent), maintenance costs ($1-2 per square meter monthly), insurance, and vacancy allowances.
Step 4: Account for periodic expenses such as tenant turnover costs, major repairs, and legal fees for lease agreements or tenant issues.
Step 5: Calculate net yield by subtracting total expenses from gross yield. Most Buenos Aires properties deliver net yields 1.5 to 2.5 percentage points below gross yields, resulting in realistic returns of 3% to 5% for well-managed properties.
Which property types or areas offer the smartest yield opportunities right now?
The current Buenos Aires market presents several compelling opportunities for yield-focused investors willing to target specific property types and neighborhoods.
Studios and one-bedroom apartments in emerging neighborhoods like Almagro, Villa Crespo, Caballito, and Villa Urquiza offer the highest gross yields, often reaching 8% to 9%. These areas benefit from improving infrastructure and growing expatriate interest while maintaining affordable purchase prices.
Short-term rental properties in central districts provide attractive returns for hands-on investors willing to manage higher turnover. Palermo and San Telmo locations particularly benefit from tourist demand and flexible pricing opportunities.
Prime districts like Palermo, Recoleta, and Puerto Madero deliver lower current yields but offer superior long-term capital appreciation prospects. These neighborhoods attract quality tenants and maintain stable rental demand regardless of economic conditions.
Properties targeting the expatriate professional market in neighborhoods with good transportation connections and amenities often achieve premium rents while maintaining low vacancy rates. This segment values convenience and quality over absolute rent minimization.
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How have rents and yields changed compared to 5 years ago, 1 year ago, and what are the forecasts for 1, 5, and 10 years ahead — and how does this compare with other large, similar cities?
Buenos Aires rental yields have experienced significant volatility over recent years, with current conditions representing a recovery from pandemic lows.
Over the past five years, rents and yields rose sharply after the 2020 pandemic due to supply shortages and pent-up demand. The market stabilized since 2023 following economic deregulation and increased foreign investment interest in Argentine real estate.
Compared to one year ago, 2025 yields have increased from an average of 4.64% to 5.98%, while property prices have risen 5% to 8%. This improvement reflects both stronger rental demand and more stable economic conditions under the current administration.
Five-year forecasts suggest 7% to 10% annual property appreciation over the next 2-5 years, with yields expected to remain stable at 5-7% for central districts and 6-9% for emerging areas. These projections assume continued economic reforms and foreign investment growth.
Ten-year projections indicate Buenos Aires will likely outperform regional competitors like Córdoba, Rosario, Santiago de Chile, and Montevideo in terms of both yield stability and capital appreciation potential. The city's international profile and improving economic fundamentals support this optimistic outlook.
Compared to similar Latin American cities, Buenos Aires currently offers competitive yields with superior upside potential, though investors should consider currency risk and regulatory changes in their investment decisions.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Buenos Aires offers attractive rental yields ranging from 4% to 9%, with smaller properties and emerging neighborhoods providing the highest returns for yield-focused investors.
The market is currently in a recovery phase with improving economic conditions, making it an opportune time for international property investment in Argentina's capital.
Sources
- Global Property Guide - Argentina Rental Yields
- The LatinVestor - Average Rent Argentina
- The LatinVestor - Buenos Aires Apartment Rental Yields
- Global Property Guide - Argentina Price History
- The LatinVestor - Buenos Aires Property
- The LatinVestor - Average House Price Argentina
- The LatinVestor - Buenos Aires Property Taxes Fees
- Airbtics - Annual Airbnb Revenue Buenos Aires
- The LatinVestor - Buenos Aires Real Estate Trends
- Wall Street Prep - Rental Yield