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Rentals: Increases of more than 200% in one year - La Nación Propiedades
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www.lanacion.com.ar
November 8, 2023
A report on the average value of rentals in 13 locations in Greater Buenos Aires has revealed a 216% increase for three-room apartments
By Candelaria Reinoso Taccone
Two-bedroom apartments already exceed $215.00 per month with increases of 200% in one year
“I go into Zonaprop every five minutes and I can't find anything. "I'm desperate," laments Sofia, a young professional who, like so many others, finds herself trapped in the nightmare of the rental market in Buenos Aires. Her complaint resonates in the midst of an unparalleled crisis that has left countless tenants searching for affordable housing in an increasingly difficult economic landscape. The hope of finding a home is fading as prices rise mercilessly, despite the new Rental Law that promised relief.
In this context, a quarterly analysis of the average rental value in 13 locations in Greater Buenos Aires has revealed a surprising statistic. According to Real Estate Report, in just one year, a specific rental category experienced a 200% increase : two-bedroom units . On average, the monthly cost of renting a standard apartment during September, without luxurious amenities, has exceeded $215,000 , while 1-bedroom apartments reach an average of $149,000. This year-on-year percentage increase has been 177% for those with 1-bedrooms and 216% for those with 2-bedrooms.
In the month of October, the report prepared by Zonaprop indicates that prices closed as follows: studio apartments averaged $207,017; One-bedroom apartments cost an average of $255,685 per month and two-bedroom apartments ask for an average price of $343,227 per month.
One-bedroom apartments reach an average of $149,000 per month.
GBA rentals
In comparison , these drastic increases in key areas of the GBA are in line with the increases in rental prices in the city of Buenos Aires , where the rent of a one-bedroom apartment experienced a 274% increase in just the last 12 months. Last September, rents for two-bedroom apartments reached an average of $292,500 in CABA, while the few 3-bedroom units available were priced at an average of $300,000 , according to Real Estate Report.
Why the new Rental Law does not improve the situation
The New Law does not effectively address the fundamental problems of the rental market.
The recent reform of the Rental Law, which establishes three-year contracts and semiannual adjustments based on the Casa Propia index, generated a debate about whether it will really improve the situation of tenants and owners . Despite the changes introduced, there are arguments that suggest that the reform does not effectively address the fundamental problems of the rental market.
One of the main points of concern is the semi-annual adjustment mechanism. Although this change was expected to benefit tenants by increasing the frequency of adjustments, the Casa Propia index is based on the lower variation between the salary variation coefficient and the variation of the Reference Stabilization Coefficient (CER) . In most cases, wages tend to rise at a slower rate than inflation, meaning tenants will continue to face increases in their rents over time.
Although the reform grants tax benefits to owners, such as the exemption of Personal Property and the tax on checks on bank accounts registered with the AFIP, this may not translate into a significant reduction in rental costs for tenants.
www.buyellba.com
Source:
Alquileres: aumentos de más de 200% en un año y la razón detrás del fenómeno que castiga a los tres ambientes
Un informe sobre el valor promedio de los alquileres en 13 localidades del Gran Buenos Aires ha revelado un 216% de aumento para los departamentos de tres ambientes
www.lanacion.com.ar
November 8, 2023
Rentals: Increases of more than 200% in one year and the reason behind the phenomenon that punishes the 2-bedrooms
A report on the average value of rentals in 13 locations in Greater Buenos Aires has revealed a 216% increase for three-room apartments
By Candelaria Reinoso Taccone
Two-bedroom apartments already exceed $215.00 per month with increases of 200% in one year
“I go into Zonaprop every five minutes and I can't find anything. "I'm desperate," laments Sofia, a young professional who, like so many others, finds herself trapped in the nightmare of the rental market in Buenos Aires. Her complaint resonates in the midst of an unparalleled crisis that has left countless tenants searching for affordable housing in an increasingly difficult economic landscape. The hope of finding a home is fading as prices rise mercilessly, despite the new Rental Law that promised relief.
In this context, a quarterly analysis of the average rental value in 13 locations in Greater Buenos Aires has revealed a surprising statistic. According to Real Estate Report, in just one year, a specific rental category experienced a 200% increase : two-bedroom units . On average, the monthly cost of renting a standard apartment during September, without luxurious amenities, has exceeded $215,000 , while 1-bedroom apartments reach an average of $149,000. This year-on-year percentage increase has been 177% for those with 1-bedrooms and 216% for those with 2-bedrooms.
In the month of October, the report prepared by Zonaprop indicates that prices closed as follows: studio apartments averaged $207,017; One-bedroom apartments cost an average of $255,685 per month and two-bedroom apartments ask for an average price of $343,227 per month.
One-bedroom apartments reach an average of $149,000 per month.
Why are two-bedroom apartments increasing?
“Generally, when such significant increases in rents occur, it is usually an indication that demand far exceeds supply ,” explains Germán Gómez Picasso, founder of Reporte Inmobiliario. “To a large extent, construction has focused on smaller apartments,” he adds. Although it is still too early to evaluate whether the new Rental Law proclaimed days ago will continue to further reduce supply and generate greater price increases , the expert believes that "everything seems to indicate that this will be the case."
GBA rentals
In comparison , these drastic increases in key areas of the GBA are in line with the increases in rental prices in the city of Buenos Aires , where the rent of a one-bedroom apartment experienced a 274% increase in just the last 12 months. Last September, rents for two-bedroom apartments reached an average of $292,500 in CABA, while the few 3-bedroom units available were priced at an average of $300,000 , according to Real Estate Report.
Why the new Rental Law does not improve the situation
The New Law does not effectively address the fundamental problems of the rental market.
The recent reform of the Rental Law, which establishes three-year contracts and semiannual adjustments based on the Casa Propia index, generated a debate about whether it will really improve the situation of tenants and owners . Despite the changes introduced, there are arguments that suggest that the reform does not effectively address the fundamental problems of the rental market.
One of the main points of concern is the semi-annual adjustment mechanism. Although this change was expected to benefit tenants by increasing the frequency of adjustments, the Casa Propia index is based on the lower variation between the salary variation coefficient and the variation of the Reference Stabilization Coefficient (CER) . In most cases, wages tend to rise at a slower rate than inflation, meaning tenants will continue to face increases in their rents over time.
Although the reform grants tax benefits to owners, such as the exemption of Personal Property and the tax on checks on bank accounts registered with the AFIP, this may not translate into a significant reduction in rental costs for tenants.
www.buyellba.com
