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After the law was repealed, rents rose below inflation in 2024 - Infobae
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Tras la derogación de la ley, los alquileres aumentaron por debajo de la inflación en 2024
Así lo confirmó un relevamiento privado, que indicó que con una suba anual del 64,4%, los alquileres quedaron 54 puntos porcentuales por debajo de la inflación proyectada para 2024
www.infobae.com
January 07, 2025
This was confirmed by a private survey, which indicated that with an annual increase of 64.4%, rents were 54 percentage points below the inflation projected for 2024.
By Jose Luis Cieri
Rental prices show the lowest increase since 2019, with increases that did not match the inflation of the year (Illustrative Image Infobae)
The rental market in the city of Buenos Aires showed a different dynamic in 2024 than in previous years, marked by the repeal of the Rental Law through Decree of Necessity and Urgency (DNU) 70/2023. According to data from a private report, apartment prices rose by 64.4% in the year, a figure four times lower than the increase recorded in 2023 (260%) and 54 percentage points below the annual inflation, estimated at 118.8% . The final confirmation of this data will be known next week, with the CPI for December.
Thus, 2024 was the first year since 2019 in which rental prices registered a real decline .
In December, the average rental price increased by 2.3%, maintaining the trend of moderate increases observed in recent months.
Currently, according to Zonaprop, the platform that conducted the analysis, a one-bedroom apartment has an average value of $550,450 per month , while a studio apartment rents for $465,091 and a three-room apartment for $740,874 per month.
These figures reflect a slowdown in the rate of adjustment of rental values, in a context where supply has grown significantly.
“Prices remain stable because the inflationary inertia, which lasted until mid-year, has stopped drastically. Currently, rent adjustments range between 2% and 3% per month at most. There is significant negotiation between owners and tenants, and many opt for agreements that are reviewed every six months to align with the market and the economic context,” Lisandro Cuello , a real estate expert, explained to Infobae .
This review must be expressed in the new agreements, as well as everything agreed upon by the parties, to avoid future problems. The Government's DNU that deregulated the market enables this possibility.
The offer tripled
The volume of properties available for rent increased by 3.3% in the last month of 2024 and accumulated a growth of 3.3 times compared to the historical minimum recorded in February 2023.
According to specialists, this increase in supply is a response to the deregulation of the market following the elimination of the Rental Law, which allowed owners to adjust conditions and re-enter their properties into the rental market.
As for prices by neighborhood, Puerto Madero was consolidated as the most expensive to rent, with an average price of $941,093 per month. It is followed by Núñez and Palermo, with average values of $613,414 and $610,098 , respectively.
At the other end of the spectrum, Villa Lugano offers the most affordable alternatives, with an average rent of $395,326 per month, followed by Floresta ($474,456) and Vélez Sarsfield ($485,671 per month) . This disparity reflects the characteristics of each area, according to its location, infrastructure and level of demand.
The current outlook presents a more stable market, although challenges remain. For tenants, rental costs continue to represent a significant portion of household income, especially in a context where macroeconomic conditions are still complex for wage earners.
The most profitable
For their part, property owners are seeking profitability in a market that, although showing signs of recovery, is still far from reaching the activity levels of previous years.The rent/price ratio is rising and stands at 5.28% annually . It currently takes 18.9 years of rent to repay the initial investment, 8.9% more than what was required a year ago .
Villa Lugano, Nueva Pompeya and Parque Avellaneda remain on the podium of neighborhoods with the best options for investors looking for rent, with a return of 8.7%, 8% and 7.4%, respectively.
On the other hand, Puerto Madero, Palermo and Belgrano are the neighborhoods with the lowest profitability , with 3.5%, 4.2% and 4.4%, respectively, as they offer the highest prices in the Buenos Aires market .
Looking ahead, analysts agree that the performance of the rental market will depend on factors such as the stability of supply and general economic conditions.
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