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In 2023, rents increased by 260%, well above the inflation rate - Infobae
Source:
January 3, 2024
This was revealed by a private report that also confirmed that rental prices increased by 18.6% in December. In the purchase and sale market, the stability of quotes is affirmed
By José Luis Cieri
In their hands, a couple holds a miniature house, reflecting the current challenges in rentals and real estate. The image captures the essence of housing in times of inflation and high prices (Illustrative Image Infobae)
In the city of Buenos Aires, renting an apartment experienced an increase of 260% annually, 2.65 times more than in 2022. This increase significantly exceeded the inflation rate (160.9% until November) and the adjustment of the Housing Contract Index. Location (ICL), which reached 135.5% year-on-year last December.
According to an analysis by Zonaprop, the rent for a two-room apartment in CABA with 50 square meters is $334,888 on average per month. A 40 m2 studio apartment is rented for $280,260 per month and a three-bedroom apartment of 70 m2 is priced at $463,301 per month.
Apart from this increase, values also made a very big jump in December: they rose 18.6%, registering another record increase.
Source: Zonaprop
Leandro Molina, country manager of the QuintoAndar Group for Argentina and Peru, highlighted to Infobae that “the accumulated increase of 260% annually in rental prices is the result of the general increase in prices and the now repealed Rental Law. Amid constant inflation and rental market uncertainty, landlords adjust prices above inflation in new contracts. The month of December, in particular, experienced the largest increase of the year (18.6%), generating a significant impact on accessibility to the housing market.”
What is the most expensive neighborhood to rent?
The work confirmed that Palermo is the neighborhood in which rents are most expensive (although from the platform they clarify that they do not count Puerto Madero because all their apartments are in dollars), with a value of $491,737 per month for a 2-room unit and 50 m2. They are followed by Belgrano ($487,654) and Núñez ($477,163 per month).In the middle zone are Saavedra, where rent averages $436,812 per month, followed by Villa Crespo with $382,801 and Parque Chacabuco, with $369,992 per month.
Source: Zonaprop
Among the affordable neighborhoods, Liniers is the most affordable neighborhood for $273,253 per month, followed by Monte Castro and Floresta, $284,809 and $288,139 per month, respectively.
Corredor Norte, Corredor Noroeste and Macrocentro are the Buenos Aires areas with the highest rental prices, averaging $474,377 per month, $419,140 and $358,652 per month, respectively. On the contrary, the West ($301,687 per month) and the Southeast ($308,272 pesos per month) are the most economical areas of the City.
Source: Zonaprop
Proposal growth
As with real estate agencies, they have noticed an improvement in the housing supply on the platform. Although currently limited, it saw a small increase compared to the last 12 months.“Since the signing of the Decree of Necessity and Urgency (DNU) by President Javier Milei and its entry into force last Friday, we anticipate changes in the panorama of the real estate market. During the last two weeks of December, a slight increase of 3% was recorded in rental advertisements in CABA, which could indicate a positive change in the property supply for this segment. However, they are processes that require time to adjust, especially in the midst of an economic crisis like the current one.”
From the sector they affirm that the law was not being respected for some time. Starting in August 2022, contracts experienced a significant increase in requests for dollarization by owners, as a safeguard against persistent inflation.
“The repeal of the Rental Law will cause many owners to invest again in the purchase of properties, since they will be able to set their conditions when putting them up for rent, allowing negotiations with tenants and restoring the will of both parties in negotiating contracts” said Miguel Di Maggio, from the real estate company Depa.
Slight decrease
Although in the second half of the year it registered a change in trend with a 1.2% increase in the sales price, the average price accumulated a decline of 1% in 2023; According to Zonaprop, “this variation was lower than that of 2022, when it was 6.6% and registered five consecutive years of decline. According to December data, the value is 22.3% below the maximum reached in 2019.
Source: Zonaprop
The ad prices published on the portal registered a monthly increase of 0.3% in December and stands at USD 2,177 dollars per m2.
A 40 m2 studio apartment has an average sales price of USD 95,538, while a two-room apartment of 50 m2 is worth USD 114,798 and a three-room apartment of 70 m2 is at $159,288.
While in 2022, 83% of the city's neighborhoods registered a decrease in real estate prices, in 2023, 65% registered a monthly price increase.
Source: Zonaprop
The volume of deeds in the City in November was 21% higher than the same month in 2022. So far this year there has been an increase of 22% compared to 2022 and 19% compared to 2019, although it still does not reach the values of 2018.
Puerto Madero heads the ranking of the most expensive neighborhoods in CABA with a value of USD 5,697 per m2. They are followed by Palermo (USD 3,019) and Belgrano (USD 2,756 per m2). On the contrary, Lugano, Nueva Pompeya and La Boca are the cheapest neighborhoods with a price of USD 979 per m2, USD 1,382 and USD 1,436 per m2, respectively.
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