Looking at rental numbers in CABA over the past few months, things are getting serious. In February, the average price of new contracts increased by 3.5% compared to January, and on an annual basis, we're talking about a 34.8% increase above inflation. A two-bedroom apartment costs around $790 thousand, while a studio is about $680 thousand.

What catches my attention most is how some neighborhoods are exploding in price while others remain calmer. Mataderos had a year-over-year increase of 39%, which is quite significant considering that rentals in Mataderos were much more affordable a few years ago. The biggest increases were in Lugano with 51.3% and Villa Pueyrredón with 42.19%. Meanwhile, San Telmo and Parque Avellaneda hovered around 25-26%.

The gap between neighborhoods is growing larger. Puerto Madero is skyrocketing: a two-bedroom averages $1,322,000, almost double what you find in Lugano, where you can get one for $643 thousand. Palermo and Núñez are also expensive, around $880-890 thousand. If you're looking for something more affordable, Liniers, Floresta, and Lugano are options, all below $680 thousand.

Since the Rental Law was repealed at the beginning of 2024, the supply of apartments has increased quite a bit, but this year it has already started to decline again. In February, it dropped 6.1% month-over-month. Still, there is nearly three times more supply than the minimum in 2023.

Regarding profitability, the rent-to-price ratio is at 5.33% gross annual, meaning you need almost 19 years of rent to recover your investment. The neighborhoods with the best return are Lugano at 9.6%, Nueva Pompeya at 8%, and La Boca at 7.5%, precisely where prices are lower. Puerto Madero, being the most expensive, yields just 3.5%.