Coliving in Buenos Aires: how it works and what it yields as an investment

If you have dollars and you're looking at where to put them, you've surely heard the same line a thousand times: “buy an apartment and rent it out”. The problem is that, once you run the numbers, a traditional rental in Buenos Aires yields around 4.5% a year after costs — and it gives you work on top of that. Coliving showed up to solve both things at once. Here's how it works, why it yields more and what you need to get in.

What an investment coliving is

A coliving is a building designed for short-term rental: private, fully equipped, design-forward units plus generous shared spaces (rooftop, coworking, bar, lobby). It targets an audience in high demand in the city today — university students, young professionals, digital nomads — who want to live well, for short or medium stays, without buying.

For the investor, the key difference isn't the bricks: it's the business model. You're not buying to find a tenant and cross your fingers. You buy a unit and add it to a managed rental pool.

How the rental pool works

It's simpler than it sounds, and it comes down to three steps:

• You buy your unit inside the coliving.
• You add it to the rental pool: your unit joins a set that is operated as a block.
• You collect your income: the operator handles everything (check-in, cleaning, maintenance, community) and the income is shared out. You don't deal with a thing.

The difference with an ordinary rental is fundamental. In a traditional rental you depend on a single person: if they don't pay, you don't collect; if they leave, you face months of vacancy. In a pool, the risk is spread across every unit and occupancy is handled by a professional team.

Why it yields more than a traditional rental

There are three concrete reasons, and they're worth understanding because they're what holds the number up:

• Higher rate: furnished short-term rental is charged per night or short stay, well above a traditional monthly rent.
• Managed occupancy: a professional operator keeps the unit occupied and minimises downtime. Less vacancy, more income.
• Diluted risk: you don't depend on one particular tenant paying; your income comes from the performance of the whole set.

According to the financial advisor for coliving projects in the city, while a traditional unit leaves the investor around 4.5% a year after costs, a coliving with a rental pool projects between 8% and 8.5% a year. Practically double, in dollars, without the owner handling the operation.

These figures are an estimated projection, not a guarantee: they depend on occupancy and on how the pool is operated. As with any investment, it's worth analysing each project in detail before deciding.

The numbers: what you need to get in

One advantage of coliving is that the entry ticket is accessible, because the units are compact and efficient. In current projects in the city you can get in from around USD 84,000 for a studio.

The usual financing is 30% down in dollars plus peso instalments adjusted by CAC, which lets you get in with part of the capital and finance the rest during construction.

And there's a point that's often overlooked: location is what sustains the income. A coliving near universities, offices and transport has short-term rental demand all year round, and that constant demand keeps occupancy high.

Who is it right for?

Coliving is a good option if you're after income in dollars without managing anything, and you're comfortable with a returns-through-operation model (rather than a quick resale). The value is in the monthly cash flow and in the quality of the pool's operation.

As with any real estate investment, what matters isn't the price per square metre you pay, but how much you're left with at the end of the year after costs. That's the number to look at.

A concrete case in the city

PEOPLE 9 de Julio, at Bernardo de Irigoyen 1142 (San Telmo), is a Rosbaco & Partners coliving with a managed rental pool. Brand-new studios and suites, one block from the subway and steps from six universities and dozens of offices: the location that sustains short-term rental demand.

Want us to send you the profitability analysis with concrete numbers? Get in touch and we'll arrange it.

Marketed by BIEF Realtors · Public Auctioneer & Real Estate Broker: Ulises Solanas · CUCICBA CPI 8351. The returns mentioned are an estimated projection, not a guarantee.