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Rentals in CABA: It is difficult to find studio apartments for less than $200,000, although they are going up less than a year ago - Infobae
Source:
July 20, 2024
Despite the expansion of supply, high demand means that the prices of one-room units remain high. In which neighbourhoods is there greater availability and what are the average prices? What is the “tenant basket”?
By Jose Luis Cieri
Studio apartments average $330,000 per month in CABA
The housing problem in Argentina is intensifying and complicating the search for rental housing, as costs continue to rise despite the slowdown in inflation.
Although the expansion of supply after the DNU that repealed the Rental Law is notable ( it has increased 190% since last January ), the high demand for one-room apartments is a factor that contributes to prices remaining high. An apartment of less than 30 square meters already has a minimum cost of $200,000 per month.
In turn, the average - according to the Scalabrini Ortiz Center for Economic and Social Studies (CESO) - is about $330,000 per month (especially for those with an area of 35 m2 and a balcony), regardless of the Buenos Aires neighborhood they are in. This especially affects those who live alone and couples without children.
Counteroffer and agreement
Lisandro Cuello , a real estate expert who works between Saavedra and Coghlan, said: “Rents are rising at a rate lower than inflation, but they are still expensive. It is true that there is negotiation and that now tenants counter-offer in order to reach an agreement. And since owners can adjust sooner and not like before, which was only year-on-year or half-yearly due to the repealed Rental Law, they agree and finally come to an agreement.”CESO reported that prices for studio apartments rose by 3.1% in June, less than the inflation rate for this month, which was 4.6% nationwide .
Inquilinos Agrupados reported on the “Tenant Basket”, based on the calculation of the value of the Total Basic Basket prepared by INDEC for June 2024, including rental and expense values corresponding to the National Tenant Survey. According to the data, a single adult needs $649,556, a couple $1,052,947, and a family of four needs $1,507,276 to cover their basic expenses.
Those that are brand new are usually the most sought after.
Through the neighborhoods
According to the Cabaprop portal, the cheapest prices for studio apartments in CABA are in Balvanera, where they start at $200,000 and $51,000 in expenses. Another decoupling that is rising sharply, since so far in 2024, expenses have increased by a record 87.53% .In La Boca and Barracas, studio apartments also start at this price, and in Liniers and Mataderos they start at $205,000 per month.
Marta Liotto , former president of the Buenos Aires Real Estate Association, said: “The important thing is that there is now supply and we understand that, once the macroeconomic imbalances are corrected, new credits are promoted and the Whitewashing drives the purchase and sale of units of up to USD 100,000, we estimate that the values will go towards a path of stability. We understand the current situation and we seek to strike a balance between owners and tenants, so that they can achieve the best possible agreement and maintain a good relationship during the contractual agreement, which mostly extends for two years.”
Where are the most expensive ones?
The most expensive are in Puerto Madero, where one-room apartments cost more than $950,000 plus expenses that amount to more than $160,000 per month.
This type of housing is requested by a single person or by a married couple or couple without children.
Next in line are the apartments that were recently opened in new developments located between Palermo, Belgrano, Núñez and Colegiales, where they cost more than $800,000 per month. Units that are more than 35 years old cost more than $350,000 in these areas of the city.
Currently, there are more than 4,000 studio apartments available in almost all of Buenos Aires' neighborhoods, when before the end of the year, due to the rejection of the Rental Law, the owners did not want to rent them out and there were only less than 200 in all of CABA.
“Prices in the middle zone range between $400,000 and $500,000 per month. For example, in Caballito, Villa Crespo, Chacarita, Floresta, Villa Devoto, Saavedra and even in areas of Palermo and Belgrano,” Cuello added.
The most demanded
According to an analysis by Zonaprop, Palermo (16%), Recoleta (10%) and Belgrano (7%) are the neighborhoods that receive the most searches. However, in relation to the pressure of demand, understood as the relationship between demand and supply, Lugano is the one with the highest index, with a total of 282%. It is followed by Coghlan (178%) and Villa Riachuelo (173%), reported this portal.In contrast, Monserrat, Coghlan and Colegiales are the neighbourhoods that receive the fewest searches, each with 2% of the total searches. On the other hand, Puerto Madero (9%), Retiro (33%) and Palermo (45%) are the neighbourhoods in which the demand is most confirmed by the existing supply.
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