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Are rents going down?: The price of publications slows down and in March the lowest increase in 5 years was recorded - La Nacion Propiedades
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¿Bajan los alquileres?: se desacelera el precio de las publicaciones y en marzo se registró el menor aumento en 5 años
Los valores en que se publican los departamentos para alquilar comenzaron a ceder como consecuencia del aumento de la oferta
www.lanacion.com.ar
March 28, 2024
The values at which apartments for rent are published began to decline as a result of the increase in supply
A two-room apartment is rented for $422,502 per month in the city of Buenos Aires, according to publications for the month of March
In the midst of a changing real estate market in which owners returned to convert their apartments to traditional rentals , after the repeal of the rental law -on December 29 with the entry into force of the signed Decree of Necessity and Urgency (DNU). by Javier, which is currently under discussion in Congress- , prices slowed for the second consecutive month.
In just two months, the platforms and real estate agencies observed how the rental supply increased and the values of the apartments marketed decreased abruptly between January and March of this year : in March the increase in the average rental price was 1. 3% , the smallest monthly increase since January 2019 , but this downward trend has been seen since February, when the growth compared to the previous month was 2.9%, well below inflation (13.2% taking the data February). In contrast, in January and December they were increasing by 21% and 18.6% , respectively, according to the latest Zonaprop report.
The new rental publications with respect to the increase in the third month of the year, accumulate a price increase of 261.7% in the last 12 months , which represents that they advance below the inflation data, which was 276 %. .2% in February 2024 (the last data revealed), and above the adjustment of the Lease Contract Index (ICL) , which is 196.7% for contracts that are updated in April of this year.
In March, the increase in average rental prices continues to slow down
Regarding the increase registered in the offer, since the end of 2022 in CABA there was a constant decrease, reaching a historical minimum in February 2023 with 4,700 publications . However, the repeal of the regulations led to a cumulative variation in supply during the first quarter of 125% , with more than 12,000 apartments currently published on the platform. “After hitting historic lows in February 2023, new increases in the supply of apartments for rent are being recorded, especially starting in December 2023,” says Leandro Molina, director of Zonaprop.
How can this phenomenon be explained?
Since the entry into force of the DNU, contracts were once again governed by the Civil and Commercial Code and are signed under free agreement between the parties on the most important points of the contracts : duration, price, adjustments and their frequency, the currency of payment, the guarantee to be presented, among others. Therefore, the owners who chose to sell - even in a sector with crumbling prices - or kept their apartments empty because the once-a-year update required by law left the contracts outdated in a context of high inflation , are now returning to the strongly locative market . Law of supply and demand: the greater the supply, the lower prices and the market becomes more competitive.Regarding profitability, it fell again in March . The rent/price ratio is 4.67% annually. The reason for the decline is due to the slowdown in the increase in rental prices. Today it takes 21.4 years of rental to recover the investment , 4.2% less than what was required a year ago. “Balvanera and Paternal remain the best neighborhoods for investors seeking income, with an average return of 5.7% and 5.6%, respectively. While Palermo (4%) and Belgrano (4.1%) are the ones that generate the least profitability ,” says Molina.
What happens with April salaries and adjustments?
With the acceleration of inflation and the liquefaction of salaries , it is becoming increasingly difficult to rent; salaries lost 17.9% of purchasing power in the first two months of Javier Milei's administration alone . Experts recommend agreeing on updates to new contracts that fit the tenants' budget, thus guaranteeing timely compliance with the agreement and avoiding possible problems throughout its term.Despite this, the rent adjustments continued to rise in the contracts already closed and in April those who have the adjustment that month will suffer a record increase: the price of the rents of the lease contracts that were signed under the law at the beginning of April 2022 as those that did so in the same month of 2023, will register an interannual increase of almost 200% (196.7% as of April 1) , according to the latest update of the Lease Contracts Index (ICL) . That is, if a tenant was paying a rent of $100,000, starting in April with the adjustment they will have to pay $296,703, while the one who pays $200,000 will pay $593,407 per month.
How much does it cost to rent in the city of Buenos Aires
In concrete numbers, the average rent for a single-bedroom is $365,546 per month in March, while a two-bedroom costs $422,502 and a three-bedroom costs $567,747 per month . If these prices are compared with those of February, the average rent for a studio apartment, a two-bedroom apartment and a three-bedroom apartment cost $354,568, $416,991 and $568,314, respectively. The increase is very low from one month to the next, unlike what happened until January with large monthly jumps.
Rental values published in March 2024
Regarding prices in each neighborhood of the City, Palermo continues to lead as the most expensive to rent a two-room apartment , with a value of $497,645 per month . This is followed by Núñez , with $476,741 per month, and Belgrano , with an average value of $471,623 per month. On the other hand, La Boca is presented as the most accessible neighborhood with an average value of $321,253.
On the other hand, Paternal and Mataderos are the neighborhoods with the greatest year-on-year increase , with an increase of 324.6% and 318.4%, respectively. While Villa Ortúzar (209.3%) and Parque Avellaneda (209.9%) are the lowest.
Neighborhood by neighborhood, these are the prices to rent a two-bedroom in the city of Buenos Aires according to the registry for the month of March:
- Palermo: $497,645
- Núñez: $476,741
- Belgrano: $471,623
- Recoleta: $467,420
- Colegiales: $463,342
- Chacarita: $458,679
- Coghlan: $456,568
- Retiro: $449,612
- Villa Urquiza: $445,035
- Paternal: $442,117
- Parque Chas: $441,824
- Saavedra: $439,972
- Villa Crespo: $435,687
- Villa Pueyrredón: $428,665
- Villa Ortuzar: $422,361
- Almagro: $415,760
- Agronomia: $414,124
- Caballito: $406,233
- San Telmo: $401,990
- Villa Devoto: $394,019
- Boedo: $392,908
- San Nicolás: $387,893
- Villa Luro: $384,922
- Villa del Parque: $383,579
- Balvanera: $382,864
- Vélez Sarsfield: $381,026
- Parque Chacabuco: $378,654
- Montserrat: $377,512
- Constitution: $376,575
- San Cristobal: $375,790
- Santa Rita: $372,852
- Flores: $363,784
- Monte Castro: $361,458
- Barracas: $359,202
- Villa General Miter: $358,508
- Parque Patricios: $351,043
- Floresta: $346,245
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