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Milei said it: How much the rental supply rose and how much the prices fell since the law was repealed - La Nacion Propiedades
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Lo dijo Milei: cuánto subió la oferta de alquileres y cuánto bajaron los precios desde que se derogó la ley
Javier Milei abrió las sesiones ordinarias del Congreso y reconoció que la derogación de la ley de alquileres tuvo efectos positivos en el mercado inmobiliario
www.lanacion.com.ar
March 2nd, 2024
Javier Milei opened the ordinary sessions of Congress and recognized that the repeal of the rental law had positive effects on the real estate market
By Candelaria Reinoso Taccone
The supply of rental properties began to rise immediately after the rental law was repealed
The resounding changes brought about by the repeal of the law through the DNU that came into force on December 29, 2023 were expected. This measure aimed to correct a rental market that, for the last three years, had been unbalanced and almost destroyed, characterized by exorbitant prices and a non-existent property supply.
Javier Milei opened the ordinary sessions of Congress and in his first speech before the legislative assembly he assured that since the rental law was repealed, the supply has doubled and publication prices have fallen between December and February . Is that so? In just two months , platforms and real estate agencies are already observing a considerable increase in the supply of apartments for traditional rental, as well as a slowdown in prices.
Since the end of the pandemic, rental supply in the city was experiencing a constant decline, reaching an all-time low in February 2023 of 4,700 listings. However, after the repeal of the rental law, in January 2024 the supply in CABA increased by 62% compared to December 2023, according to the latest Zonaprop survey . In February, the increase continued with 20.6%, leading to a cumulative variation in supply during the first two months of the year of 96%.
After the repeal of the Rental Law, in January 2024 the supply in CABA increased by 62% compared to December 2023.
But why did this phenomenon occur? In the midst of the unchecked inflation that marked recent years, the value of the rents was the only one that was adjusted every 12 months, with contracts of at least three years. The law, which came into effect in 2020, ended up distorting the real estate market and harming all actors. The owners sold or left their properties empty so as not to lose money and the tenants were left without options: in some neighborhoods, zero publications were recorded.
Since President Javier Milei repealed the norm through the DNU with which his government began, the parties have negotiated the most important points of the contracts : the duration, the price, the adjustments and their frequency, the currency in which they will be paid. , the guarantee to present, among others. Little by little, owners are making their properties available again, in part due to the new flexibility that landlord and tenant have so that the contract better adapts to their needs.
Price slowdown
The average rental value in the city of Buenos Aires increased only 2.9%, which represents the smallest increase since October 2021.
The key fact is that, although prices did not decrease with the same intensity as supply increased, they are declining with a marked deceleration. In February, the average rental value in the city of Buenos Aires increased only 2.9% , representing the smallest increase since October 2021 . In contrast, in January and December they were increasing by 21% and 18.6% , respectively.
This suggests that rents could begin to increase in price below the inflation rate , which is estimated to be close to 15% for February according to private consultancies. If we consider the accumulated increase in prices of new rental contracts in the last 12 months , the variation was 286.7%, which means that it is below inflation (292.3%), although it exceeds the adjustment of the Lease Contract Index (ICL) , which was 159.4%.
If the last twelve months are taken into account, the increase in rents is below inflation (292.3%).
In concrete numbers, the average rent for a single-bedroom in February was $354,568 per month, while a two-bedroom cost $416,991 and a three-bedroom cost $568,314 per month. If these prices are compared to those of January, the increase is not significant since in that month the rental of a studio apartment, a two-room apartment and a three-room apartment cost $327,295, $405,218 and $558,710 respectively.
“Not only did we experience a notable increase in the supply of apartments for rent, but in some cases we had to reduce prices in pesos due to the lack of sufficient visits ,” says Soledad Balayan, owner of Maure Inmobiliaria. “It is clear that it is much easier to find a rental now than it was a few months ago , of course the ideal is for salaries to adjust to inflation, but with regard to supply the data is conclusive and that in the medium term will to ensure that prices do not rise as they would have done with the law if it were still in force,” says Balayan.
How much does it cost to rent in the city of Buenos Aires neighborhood by neighborhood
San Telmo is the neighborhood with the greatest year-on-year increase with a 325% increase in prices
Palermo continues to lead the most expensive neighborhoods in the city of Buenos Aires to rent a two-room apartment , with a value of $501,375 per month (the previous record was $508,160). They are followed by Núñez ($478,920 per month) and Belgrano ($478,341). At the same time, Liniers remains the most accessible neighborhood with an average value of $318,143 per month. La Boca and Mataderos follow, with a rent of $327,360 and $333,837, respectively.
On the other hand, San Telmo and San Nicolás are the neighborhoods with the greatest year-on-year increase , with an increase of 325% and 324%, respectively.
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 February :
- Palermo: $501,375 (January $508,160)
- Núñez: $478,920 (January $486,712)
- Belgrano: $478,341 (January $497,300)
- Chacarita: $470,621 (January $492,018)
- Recoleta: $462,323 (January $462,257)
- Retiro: $459,436 (January $466,328)
- Coghlan: $448,953 (January $437,485)
- Saavedra: $441,003 (January $445,375)
- Villa Urquiza: $440,863 (January $450,036)
- Colegiales: $440,630 (January $437,649)
- Paternal: $428,790 (January $397,500)
- Villa Pueyrredón: $424,073 (January $391,978)
- Villa Crespo: $421,677 (January $406,223)
- Parque Chas: $419,560 (January $395,728)
- Villa Ortúzar: $408,600 ($414,078)
- Almagro: $407,038 (January $394,644)
- Caballito: $399,588 (January $395,763)
- San Telmo: $391,522 (January $406,527)
- Boedo: $389,480 (January $357,077)
- Chacabuco Park: $384,647 (January $386,018)
- Villa Luro: $376,974 (January $361,586)
- Monserrat: $375,821 (January $399,991)
- San Nicolás: $375,757 (January $364,886)
- Villa Devoto: $375,176 (January $387,405)
- Villa del Parque: $373,314 (January $372,662)
- Balvanera: $370,955 (January $352,247)
- Villa Gral. Miter: $363,790 (January $366,101)
- Flores: $358,282 (January $357,820)
- Santa Rita: $357,111 (January $318,991)
- Monte Castro: $355,845 (January $315,942)
- Constitution: $351,937 (January $345,833)
- Vélez Sarsfield: $350,765 (January $342,225)
- Barracas: $347,839 (January $329,749)
- San Cristóbal: $345,787 (January $346,679)
- Floresta: $337,429 (January $316,520)
- Mataderos: $333,837 (January $310,634)
- Liniers: $318,143 (January $301,392)
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