Buenos Aires rental market in 2026: Small apartments drive up prices – significant differences between neighborhoods
- 7 days ago
- 3 min read
The rental market in Buenos Aires has started 2026 with noticeable momentum. In January, average asking rents rose by 2.7% compared to December 2026. This represents an acceleration in growth after a comparatively moderate trend in 2025. Over the year as a whole, price increases for new leases totaled 34.9% – exceeding inflation (31.2%) and slightly exceeding the adjustment index for previous leases.
Content
Current average rents by apartment category
Market situation: Significant recovery since 2023
Rental yields and ancillary costs
Price differences by district in Buenos Aires
Focus: Palermo Sur (Palermo Universitario)
Conclusion
Current average rents by apartment category
However, the trend is not evenly distributed. Smaller units in particular are showing above-average growth:
One-room apartment (monoambiente): ARS 550,000 (+10% in January; +37.5% year-on-year)
Two-room apartment: ARS 763,818 per month (+30% year-on-year)
Three-room apartment: ARS 1,026,674 (+28.5% year-on-year)
It is striking that studio apartments in particular have become more expensive. This can be explained by the seasonal increase in demand at the beginning of the year, particularly from students who move to Buenos Aires at the start of the semester.
Market situation: Significant recovery since 2023
Since the historic low in February 2023, supply has expanded significantly. Following the lifting of the previous rent regulation at the beginning of 2024, supply rose by 62% in the short term.
The volume of available rental apartments is currently around 2.9 times higher than at the low point in 2023, although January 2026 saw another decline of 7.7% compared to the previous month.
At the same time, dollarization is gaining in importance: around 30% of rental listings are now advertised in US dollars.
Rental yields and ancillary costs
The average gross rental yield for all 48 districts of Buenos Aires is currently 5.09% per annum. It would take approximately 19.6 years to recoup the purchase price through rental income – around 3.2% longer than a year ago.
Ancillary costs (“expensas”) represent a significant additional factor:
In Buenos Aires, they amount to an average of 23.2% of the rent including utilities.
In Rosario, they are around 17.5%.
Comparison with Rosario
Rosario also saw strong growth in small units:
One-room apartment: ARS 350,000
Two-room apartment: ARS 430,000
Three-room apartment: ARS 590,000
The annualized increases were around:
+60% (one-room apartments)
+51.3% (three-room apartments)
+43.3% (two-room apartments)
Despite these strong increases, the absolute rent level in Rosario remains on average around ARS 200,000 below that of Buenos Aires.
Price differences by district in Buenos Aires
Location continues to be the decisive price driver. The following are the average monthly rents for a two-room apartment:
High-priced neighborhoods
Puerto Madero: ARS 1,238,741
Núñez: ARS 818,018
Palermo: ARS 814,676
Mid-range
Colegiales: ARS 764,760
Recoleta: ARS 747,713
Almagro: ARS 720,773
More affordable locations
San Nicolás: ARS 657,065
Parque Avellaneda: ARS 649,910
Floresta: ARS 639,271
Focus: Palermo Sur (Palermo Universitario)
Palermo Sur, located between Soler, Scalabrini Ortiz, Córdoba, and Gallo, is a particularly dynamic microzone. The neighborhood benefits greatly from:
Proximity to universities
Medical infrastructure
Gastronomy and leisure activities
High tourist appeal
The average price per square meter for new buildings here is USD 3,684/m². This positions Palermo Sur:
slightly below Palermo Hollywood (USD 3,773/m²)
significantly below Palermo Nuevo (USD 5,555/m²)
above Almagro (USD 2,979/m²)
For Palermo as a whole, the average values are:
New construction: $3,893/m²
Under construction (“pozo”): $3,976/m²
Existing: $3,035/m²
This makes Palermo the second most expensive neighborhood in the city after Puerto Madero.
New construction activity in Palermo Sur
Construction activity in Palermo Sur has remained stable over the past four years, following a significant decline in 2021. Smaller residential units—especially one- and two-bedroom apartments—are currently dominating the market and are attractive to both owner-occupiers and investors.
Conclusion
The rental market in Buenos Aires is showing selective but clear momentum at the beginning of 2026. Smaller units in well-connected, urban locations with structural demand are performing particularly well.
With gross yields of between 5% and 8% in sought-after locations, rising demand in university districts, and the continued high attractiveness of central districts, the market remains interesting for strategically positioned investors. The key is to select locations with strong micro-locations and a sustainable demand base.
