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No Rental Law: For the first time since 2020, prices in Buenos Aires did not increase in February - Infobae
Source:
www.infobae.com
February 17, 2025
This is unprecedented, a report said. In addition, the interannual variation remained below 43% for 1, 2 and 3 room units. What are the average values?
By Jose Luis Cieri
Rental prices in February show stability in values (Illustrative Image Infobae)
According to the survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO), the median rental prices in the city of Buenos Aires in February 2025 did not register a monthly variation. An unprecedented situation, with no precedents since before the Rental Law, which recalls what happened five years ago, at the beginning of the pandemic, when the values were frozen .
The CESO report found that, for the first time, prices did not rise from one month to the next, registering increases of less than 43% year-on-year for studio, 1 and 2-bedroom apartments.
For one-room apartments, the median price was set at $400,000, with a year-on-year increase of 42.9%; for one-bedroom apartments, the price rose to $500,000, with the same percentage year-on-year, while two-bedroom apartments reached $700,000, with an increase of 40% compared to the previous year.
Expenses represent an average of 22.2% of the rental offer price," CESO pointed out, something that weighs on tenants' budgets.
Despite the historic increases recorded in 2023, the segment stressed that the market achieved a certain stability after the repeal of the Rental Law in December of that year, a regulation that previously established annual contractual updates.
According to María Celina Calore , an economist at CESO, this is due to a combination of factors. “During 2023, offer prices soared above inflation and the dollar, as owners sought to cover themselves from prolonged periods without increases. After the law was repealed, this pressure decreased because owners can now adjust conditions more frequently,” she explained.
Rental prices in February show stability in values (Illustrative Image Infobae)
According to the survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO), the median rental prices in the city of Buenos Aires in February 2025 did not register a monthly variation. An unprecedented situation, with no precedents since before the Rental Law, which recalls what happened five years ago, at the beginning of the pandemic, when the values were frozen .
The CESO report found that, for the first time, prices did not rise from one month to the next, registering increases of less than 43% year-on-year for studio, 1 and 2-bedroom apartments.
For studio-bedroom apartments, the median price was set at $400,000, with a year-on-year increase of 42.9%; for one-bedroom apartments, the price rose to $500,000, with the same percentage year-on-year, while three-room apartments reached $700,000, with an increase of 40% compared to the previous year.
Expenses represent an average of 22.2% of the rental offer price," CESO pointed out, something that weighs on tenants' budgets.
Despite the historic increases recorded in 2023, the segment stressed that the market achieved a certain stability after the repeal of the Rental Law in December of that year, a regulation that previously established annual contractual updates.
According to María Celina Calore , an economist at CESO, this is due to a combination of factors. “During 2023, offer prices soared above inflation and the dollar, as owners sought to cover themselves from prolonged periods without increases. After the law was repealed, this pressure decreased because owners can now adjust conditions more frequently,” she explained.
Other reasons, according to the Center's analysis, include an increase in the supply of rental properties, motivated by deregulation, and the decline in the purchasing power of families, which limits the ability to validate high prices. Calore added that the prices that end up being agreed upon "tend to be lower than those published, largely due to the economic crisis that the country is going through."
He also highlighted that the exchange rate appreciation reduced the demand for temporary rentals from tourism, which had an impact on the CABA market.
Another highlight for market analysts is the almost 200% increase in the total rental supply compared to December 2023 .
According to Calore, this has already peaked and is not expected to continue affecting prices throughout 2025.
For her part, Alejandra Vecchio , from Vecchio & Puebla, gave her opinion on the dynamics of the current real estate market: “There is supply and a lot of competition in the sector. In fact, the proposals that come onto the market are cheaper than what the average Consumer Price Index (CPI) dictates.”
For tenants, the loss of wages and the delay in keeping up with accumulated inflation continue to make it difficult to pay rent and expenses.
Vecchio also highlighted that neighborhoods such as Parque Patricios, Boedo, Almagro and Flores have apartments available at relatively affordable prices, and that proximity to means of transportation such as the subway contributes to their appeal.
For tenants, he suggested a strategy focused on negotiating terms. “Discussing prices and upgrade clauses is key to reaching an agreement in line with the current market,” he said.
For Sebastián Cantero , CEO of TBSA Toro Brokers, the market is in a process of adjustment. Regarding the projection for 2025, he acknowledged that the availability of properties will be a determining factor in prices.
According to Cantero, “if property sales and access to mortgage loans increase, there could be an adjustment in the rental supply and, therefore, in market values.”
On the other hand, Cantero also highlighted the importance of the most sought-after neighbourhoods, such as Palermo, Caballito, Belgrano and Villa Urquiza, which attract people due to their connection to the city and the variety of services they offer.
“These neighborhoods combine good mobility, security and green spaces, ideal for students, professionals and families,” he said.
Although rental prices appear to have stabilized against year-on-year inflation, other associated costs, such as utilities ( almost 170% year-on-year ), rose at a faster pace, impacting the final cost of housing.
Among the reasons, Calore mentioned the increase in utility rates, such as water and electricity, along with increases in the ABL.
“This represents an additional challenge for tenants, despite the growing supply and the opportunity to negotiate more competitive prices,” he concluded.
www.buysellba.com
Source:
Sin Ley de Alquileres: por primera vez desde 2020, en febrero los precios en Buenos Aires no aumentaron
Se trata de algo inédito, precisó un informe. Además, la variación interanual se mantuvo por debajo del 43% para unidades de 1, 2 y 3 ambientes. Cuáles son los valores promedio
www.infobae.com
February 17, 2025
This is unprecedented, a report said. In addition, the interannual variation remained below 43% for 1, 2 and 3 room units. What are the average values?
By Jose Luis Cieri
Rental prices in February show stability in values (Illustrative Image Infobae)
According to the survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO), the median rental prices in the city of Buenos Aires in February 2025 did not register a monthly variation. An unprecedented situation, with no precedents since before the Rental Law, which recalls what happened five years ago, at the beginning of the pandemic, when the values were frozen .
The CESO report found that, for the first time, prices did not rise from one month to the next, registering increases of less than 43% year-on-year for studio, 1 and 2-bedroom apartments.
For one-room apartments, the median price was set at $400,000, with a year-on-year increase of 42.9%; for one-bedroom apartments, the price rose to $500,000, with the same percentage year-on-year, while two-bedroom apartments reached $700,000, with an increase of 40% compared to the previous year.
Expenses represent an average of 22.2% of the rental offer price," CESO pointed out, something that weighs on tenants' budgets.
Why did price increases slow down?
Despite the historic increases recorded in 2023, the segment stressed that the market achieved a certain stability after the repeal of the Rental Law in December of that year, a regulation that previously established annual contractual updates.
According to María Celina Calore , an economist at CESO, this is due to a combination of factors. “During 2023, offer prices soared above inflation and the dollar, as owners sought to cover themselves from prolonged periods without increases. After the law was repealed, this pressure decreased because owners can now adjust conditions more frequently,” she explained.
Rental prices in February show stability in values (Illustrative Image Infobae)
According to the survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO), the median rental prices in the city of Buenos Aires in February 2025 did not register a monthly variation. An unprecedented situation, with no precedents since before the Rental Law, which recalls what happened five years ago, at the beginning of the pandemic, when the values were frozen .
The CESO report found that, for the first time, prices did not rise from one month to the next, registering increases of less than 43% year-on-year for studio, 1 and 2-bedroom apartments.
For studio-bedroom apartments, the median price was set at $400,000, with a year-on-year increase of 42.9%; for one-bedroom apartments, the price rose to $500,000, with the same percentage year-on-year, while three-room apartments reached $700,000, with an increase of 40% compared to the previous year.
Expenses represent an average of 22.2% of the rental offer price," CESO pointed out, something that weighs on tenants' budgets.
Why did price increases slow down?
Despite the historic increases recorded in 2023, the segment stressed that the market achieved a certain stability after the repeal of the Rental Law in December of that year, a regulation that previously established annual contractual updates.
According to María Celina Calore , an economist at CESO, this is due to a combination of factors. “During 2023, offer prices soared above inflation and the dollar, as owners sought to cover themselves from prolonged periods without increases. After the law was repealed, this pressure decreased because owners can now adjust conditions more frequently,” she explained.
Other reasons, according to the Center's analysis, include an increase in the supply of rental properties, motivated by deregulation, and the decline in the purchasing power of families, which limits the ability to validate high prices. Calore added that the prices that end up being agreed upon "tend to be lower than those published, largely due to the economic crisis that the country is going through."
He also highlighted that the exchange rate appreciation reduced the demand for temporary rentals from tourism, which had an impact on the CABA market.
Increased supply and its impact on the market
Another highlight for market analysts is the almost 200% increase in the total rental supply compared to December 2023 .
According to Calore, this has already peaked and is not expected to continue affecting prices throughout 2025.
For her part, Alejandra Vecchio , from Vecchio & Puebla, gave her opinion on the dynamics of the current real estate market: “There is supply and a lot of competition in the sector. In fact, the proposals that come onto the market are cheaper than what the average Consumer Price Index (CPI) dictates.”
For tenants, the loss of wages and the delay in keeping up with accumulated inflation continue to make it difficult to pay rent and expenses.
By neighborhoods
Vecchio also highlighted that neighborhoods such as Parque Patricios, Boedo, Almagro and Flores have apartments available at relatively affordable prices, and that proximity to means of transportation such as the subway contributes to their appeal.
For tenants, he suggested a strategy focused on negotiating terms. “Discussing prices and upgrade clauses is key to reaching an agreement in line with the current market,” he said.
Future prospects
For Sebastián Cantero , CEO of TBSA Toro Brokers, the market is in a process of adjustment. Regarding the projection for 2025, he acknowledged that the availability of properties will be a determining factor in prices.
According to Cantero, “if property sales and access to mortgage loans increase, there could be an adjustment in the rental supply and, therefore, in market values.”
On the other hand, Cantero also highlighted the importance of the most sought-after neighbourhoods, such as Palermo, Caballito, Belgrano and Villa Urquiza, which attract people due to their connection to the city and the variety of services they offer.
“These neighborhoods combine good mobility, security and green spaces, ideal for students, professionals and families,” he said.
Stable prices, but pressure on overall costs
Although rental prices appear to have stabilized against year-on-year inflation, other associated costs, such as utilities ( almost 170% year-on-year ), rose at a faster pace, impacting the final cost of housing.
Among the reasons, Calore mentioned the increase in utility rates, such as water and electricity, along with increases in the ABL.
“This represents an additional challenge for tenants, despite the growing supply and the opportunity to negotiate more competitive prices,” he concluded.
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