Buenos Aires Rental Profitability: Neighborhoods Yielding Highest Returns in August 2026

The question of whether buying property to rent out has become profitable again resonates in Buenos Aires' real estate market. While sales values have begun to recover, the pace has moderated significantly after a post-pandemic decline. Analysts suggest that if mortgage credit becomes more accessible, it could impact the rental market by reducing demand and moderating rent increases.

Following the repeal of the rental law in December 2023, rental supply has increased, and publication price hikes have slowed. However, rents remain high relative to incomes, acting as a natural ceiling for further increases and indicating a more stable than expansive market. The average gross annual rental yield for traditional apartments listed in Buenos Aires City has slightly decreased to 5.89% as of July 2026, according to a report by the real estate platform Zonaprop. This means it takes 17 years of rent to recover the initial investment, a 5.76% decrease from the previous year.

The most profitable neighborhoods for rental investments are concentrated in areas where sales values remain relatively low. Lugano and La Boca offer annual gross returns exceeding 7.5%, making them attractive from a purely investment perspective. These neighborhoods, historically overlooked by end-buyers, show strong numbers when analyzed for yield, benefiting from lower per-square-meter purchase prices and sustained rental rates.

Conversely, premium neighborhoods like Puerto Madero, Palermo, Núñez, and Belgrano exhibit more modest profitability, ranging between 3.5% and 4.8% annually. The high sales and rental prices in these areas compress profitability, despite solid demand and low vacancy risk. The report highlights that the difference in profitability becomes apparent when examining the city map, with lower-priced areas offering significantly better returns for investors.