how much is the current profitability

Contrary to what has been happening with the segment of rentals traditional, temporary rent began to be imposed in the offer from the flexibility of contracts that this regime allows and, also, the option of billing in dollars due to international tourism. These advantages led to the consolidation of a business that, according to real estate agents and developers, boasts levels of profitability that comfortably double the numbers of the usual rentals.

Different experts and actors of the sale affirmed to iProfessional that the market is going through one of its best moments in decades. And that the projects that propose this alternative in the brick as a juicy investment proliferate.

The specialists consulted pointed out that, although the profitability of traditional rentals in the Federal Capital is already around 4 percent per year, today the profits derived from the temporary option are around 9 percent in dollars.

“Currently, the temporary rental market is in one of its best moments. This market offers a double benefit for investors. On the one hand, a capitalization of between 30 and 50 percent entering the pre-launch instance. On the other, an interesting return in dollars that can even triple that of traditional rental. Let’s keep in mind that it is a market decoupled from the real economy,” said Alan Mohadeb, a partner at CEK Group.

Profitability comfortably doubles the numbers of traditional rental.

Temporary rentals and billing in dollars

The expert stressed that it is “a market decoupled from the real economy.” Something similar was expressed by Leonardo Rodríguez Nader, co-founder and CEO of CMNV Comunidad de Inversión. “The temporary rental market is completely on the rise and will continue to be from the little supply that there is and the demand that will be in sustained growth“, he expressed.

Rodríguez Nader maintained that Buenos Aires continues to be among the capitals that attract international tourism due to its cultural, social and historical appeal. And that it is this same public, adept at short and medium-term residences, the variable that explains this takeoff of temporary workers.

“Students, project workers, or people in the retirement stage who plan their lives based on the entertainment offer, put pressure on a limited supply of spaces to live temporarily and are generating a new market that, as receptive tourism becomes increases, it will have more and more demand,” he added.

Who is betting on this business? Darío López, head of the Central Society of Architects (SCA) recently commented to iProfessional that “these are buyers with a lot of experience, who already know the destination that they will give to the new units”.

He affirmed that “the great majority buys to allocate the department to temporary rent. Let us think that, in this segment, a studio apartment is giving a monthly return of more than 100,000 pesos“.

“Those who bet on this business are recovering 10 percent of the investment they made in just over a year,” he added.

Puerto Madero, Bajo Buenos Aires and Palermo are the areas with the greatest takeoff of temporary workers.

Puerto Madero, Bajo Buenos Aires and Palermo are the areas with the greatest takeoff of temporary workers.

Temporary rentals: the areas with the most push

Based on infrastructure works such as the Metrobus, the Paseo del Bajo and the renovation of the Parque del Bajo, which in total required investments of over 650 million dollars, the area around Puerto Madero again generated interest also from of the strong fall in the value of the square meter.

“The area is positioning itself exceptionally for temporary rentals, which allows investors to secure rentals in dollars in a pesified market,” said Rodríguez Nader. The executive assured that “It has been 20 years since the City has not generated a new hotel offer and that accommodation places are needed for international tourism”.

CMNV Comunidad de Inversión promotes the Catalinas Sur Shipyard project in this section of the Buenos Aires geography, located 50 meters from the docks and with 40-square-meter units that start at $110,000 and have financing in pesos.

The firm also owns Uno Balvanera, a venture located in that neighborhood and that integrates studio apartments of 37 square meters at prices starting at $59,000.

For his part, Mohadeb highlighted the case of Palermo Soho, a neighborhood that today it captures between 50 and 60 percent of all the tourism that arrives in Buenos Aires. There, CEK Group is working on HAUSS, a project designed specifically for temporary rental.

The proposal includes 85 units with sizes ranging from 30 to 72 square meters. And at values ​​that start at 72,000 dollars, although financeable in installments in pesos adjusted to the index of the Argentine Chamber of Construction (CAC).

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