Real Estate News Rentals: how much does a one-bedroom apartment cost, neighborhood by neighborhood in the city of Buenos Aires - La Nacion Propiedades

[BuySellBA]

Rentals: how much does a one-bedroom apartment cost, neighborhood by neighborhood in the city of Buenos Aires - La Nacion Propiedades


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Alquileres: cuánto cuesta un departamento de dos ambientes, barrio por barrio, en la ciudad de Buenos Aires

Los precios de los departamentos publicados en los portales inmobiliarios continúan en alza

www.lanacion.com.ar

June 12, 2024

Apartment prices continue to rise, although at a slower rate than previous months and the deceleration is evident

The prices of apartments for rent published on real estate portals registered a sharp deceleration for the fourth consecutive monthDaniel Karp


The rental prices of properties located in the City of Buenos Aires registered a slight increase in the publication value, 2.3 % in the month of May , registering a strong deceleration for the fourth consecutive month after increasing 21% in January and 18.6% in December, according to the index published every month by Zonaprop .

This phenomenon occurs in a context marked by the validity of the Decree of Necessity and Urgency (DNU) promoted by President Javier Milei in December, a set of measures that marked a radical change in the regulation of the real estate market due to the repeal of the rental law , and which is currently under discussion.

In turn, the rental offer increases by 10.5% in May and accumulates an increase of 150% so far this year . “After reaching historic lows in February 2023, new increases in the supply of apartments for rent are recorded , especially from December 2023 onwards,” says Leandro Molina, director of the real estate portal .



New rental contracts have accumulated a price increase of 209% in the last 12 months , progressing below inflation (289.4%, taking data from April) and above the ICL adjustment (233.73%). The latter is the index by which the contracts signed under the law repealed by the DNU in May were adjusted annually.

The repeal of the rental law (27,551), approved in July 2020 and subsequently modified in October 2023, allowed that from now on, freedom between the parties prevails in the negotiation of crucial points in rental contracts. The key for both parties, landlords and tenants, is to reach written agreements on these points, as well as any other relevant aspects, in order to prevent possible conflicts in the future.

Rents slowed for the fourth consecutive monthFabian Marelli

In numbers, the average rent for a one-bedroom apartment in the city is $383,954 per month , a two-bedroom apartment can be rented for $440,072 , while a three-bedroom apartment can be rented for $588,039 , according to Zonaprop .

Regarding profitability, it accelerated in May. The rent/price ratio is 4.77% annually. Today it takes 21 years of rental to recover the investment, 1% more than what was required a year ago. Lugano and La Boca remain the best neighborhoods for investors seeking income , with an average return of 7.3% and 6.4%, respectively. While Palermo (3.9%), Belgrano (4.1%) and Retiro (4.1%) are the ones that generate the least profitability.

The most expensive and cheapest neighborhoods to rent a two-bedroom in CABA​

Depending on the area in which the properties are located, the prices of the apartments vary: the real estate portal publishes the average monthly prices of the apartments in the different neighborhoods of the city, using as a concrete example the units of two environments.

In this case, Puerto Madero occupies first place as the most expensive neighborhood , with an average price of around $1,052,056 per month , while on the other hand, Lugano is the cheapest with $292,018 per month .

The neighborhoods with the most expensive rents​

• Puerto Madero: $1,052,056
• Palermo: $505,329
• Colegiales: $491,794
• Nunez: $487,284
• Belgrano: $481,859

Belgrano is among the most expensive neighborhoods to rent, with an average rent of $481,859Fabián Marelli - LA NACION

The prices of apartments in the cheapest neighborhoods​

• Lugano: $292.018
• Mataderos: $342,813
• Liniers: $357,222
• Floresta: $359,190
• Velez Sarsfield: $370,266

Intermediate rental values​

• Villa Crespo: $458,745
• Villa Pueyrredón: $434,932
• Boedo: $414,519
• Agronomy: $406,258
• Constitution: $391,578

The neighborhood with the greatest year-on-year increase is San TelmoImage Point Fr - Shutterstock

For its part, regarding the interannual increase, the neighborhoods that showed the greatest increase are San Telmo, Parque Avellaneda and Montserrat, with an increase in the last 12 months of 251.9%, 250.8% and 248% respectively.

While on the opposite side, there are Palermo, Boedo and Parque Chas . In this case, rents grew by 171.3%, 174.4% and 175.6% respectively. One fact to keep in mind is that, in addition to being the neighborhoods that showed a smaller variation in prices compared to the rest of the areas , they are also below the increase in inflation in the last year, which was 289, 4 % in April (latest report).


www.buysellba.com

 

[Anchor Baby]

But these prices are for locals with a co-signer. We have found for foreigners that are coming it's almost impossible to get a local rent. Everyone wants a co-signer and some owners want to be paid 12-24 months up front without a co-signer. So some of these articles don't really apply to foreigners. What did most of you do when you moved here? Did you find a co-signer or just pay ahead of time?

 

[Betsy Ross]

But these prices are for locals with a co-signer. We have found for foreigners that are coming it's almost impossible to get a local rent. Everyone wants a co-signer and some owners want to be paid 12-24 months up front without a co-signer. So some of these articles don't really apply to foreigners. What did most of you do when you moved here? Did you find a co-signer or just pay ahead of time?

This is correct. The laws here are pro-tenant and difficult to get out a tenant that stops paying their rent so owners ask for a guarantor or co-signer to pledge their property. There are some insurance policies but I'm not sure if non-residents can purchase these policies. I read several that said they couldn't get a policy. When I moved to Buenos Aires I found a property on Airbnb initially and then I negotiated with the owner directly. I did have to pay 12 months up front but I already stayed in the property a few months and liked it and the owner was very friendly.

You can use Airbnb in the beginning or my friend told me there are some Facebook groups also to find properties. Some people end up using Airbnb for a longer term lease but it is usually the most expensive option. Also, these articles are for empty apartments and buying furniture here isn't cheap, quick or easy. So that is something to keep in mind as well.

 

[Spend Thrift]

But these prices are for locals with a co-signer. We have found for foreigners that are coming it's almost impossible to get a local rent. Everyone wants a co-signer and some owners want to be paid 12-24 months up front without a co-signer. So some of these articles don't really apply to foreigners. What did most of you do when you moved here? Did you find a co-signer or just pay ahead of time?

Correct. Plus you have to buy furniture and furnish it which you may not want to do. I found an apartment on Airbnb and stayed in it 2 weeks first as I didn't want to commit to a 1 year lease without seeing how it was and if I liked the neighborhood. Then I did a private contract with the owner. I did have to pay 12 months up front which I was happy to do. The lease was in USD. She is giving me the option to lease it another year if I want to and the rate will go up a few hundred bucks a month for the 2nd year. With inflation here prices always go up. But we did a contract to lock in the rate for year 2. Only thing is I have to pay for that ahead of time a few months.

No way I want to buy furniture here. The apartment is nice and has everything I needed. Except the TVs were old and not not smart TVs so I bought new TV's and asked the owner to remove the old ones. I just had to buy a few things for the kitchen but I am happy this way.

I wouldn't recommend to rent an apartment long term without at least spending a few nights in it. Airbnb is good that way.

 

[LongIslander]

Everything is a major hassle there. I have friends that paid 50% to order furniture and got cheated and the place went out of business or just cheated them out of the money. People don't talk enough about all the hassles in Argentina. Many friends have gotten cheated or conned by contractors there.