The real estate market in Buenos Aires is experiencing a significant shift following the repeal of the Rental Law in 2023, which has transitioned the city from a scenario of scarcity to one of oversupply. This deregulation has led to a new dynamic in negotiations between landlords and tenants, introducing concepts that were previously reserved for real estate investors, namely rental yield. The crucial question now is how to assess whether the rental prices for apartments in areas like Palermo or Caballito are reasonable.

Real estate developers and brokers consulted by La Nación suggest a 'magic number' of 5% annual yield as a benchmark for determining fair rental prices. However, the methodologies for reaching this percentage have sparked a technical debate within the real estate sector, reflecting a divergence of opinions among industry professionals. As a result, both landlords and tenants are finding themselves navigating uncertain waters in terms of fair pricing, which is influenced by broader economic factors such as wages.

Overall, this shift in the rental market paradigm not only affects pricing strategies for rentals but also highlights the growing importance of financial literacy for both tenants and landlords. Understanding how to interpret rental yields in this new landscape is vital for making informed decisions in leasing agreements, particularly in a market that is heavily influenced by fluctuating economic conditions and employment earnings.