Real Estate News Rentals: studio apartments are offered at $155,000 per month - La Nación Propiedades

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Rentals: studio apartments are offered at $155,000 per month - La Nación Propiedades


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Alquileres: los monoambientes se ofrecen a $155.000 por mes y hay tres barrios que superan a Palermo en aumentos y precios

El aumento de los alquileres acumula un 114% en lo que va del año y trepan a un 166% en los últimos 12 meses

www.lanacion.com.ar

September 01, 2023

Rentals: studio apartments are offered at $155,000 per month and there are three neighborhoods that surpass Palermo in increases and prices​

The increase in rents accumulates 114% so far this year and climbed 166% in the last 12 months

In the course of this year, rental prices in the city of Buenos Aires experienced a worrying acceleration . The most recent data for August shows that new rental values have averaged an impressive 114% increase so far this year, far exceeding the 73% inflation rate, according to the monthly report by Zonaprop. In addition, the rents of new contracts had a substantial increase of 166.7% in the last 12 months, which represents the largest increase registered since the beginning of the series.​

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Since mid-2020, when the current rental law was enacted , contracts have increased by more than 600% , according to a report from the Córdoba Stock Exchange. And in the week after Milei's mid-term (PASO) win, rental listings dropped 25% that were formally on offer.​

New rental prices have averaged an impressive 114% increase year to date.

One of the highlights of this trend is the steady increase in prices in the 1 bedroom segment . In the last month, these rents rose 12.8%, marking the fourth consecutive month of record monthly increase.​

On the other hand, the studios reached a publication price of $155,426 on average per month , with a year-on-year increase of 154.5%. In addition, to this is added the estimate that in the city of Buenos Aires there are less than 900 apartments to rent in pesos under the conditions of the new law.​

The data also reveals that the neighborhoods of Villa del Parque and San Cristóbal lead in terms of year-on-year increases , with an impressive 198.4% and 197.4% respectively. Another point that stands out in the latest Zonaprop report on August is that Núñez surpassed Palermo as the area with the highest rents, reaching an average price of $270,728 per month. At the other extreme, Vélez Sarsfield appears as the cheapest option, with an average monthly rental price of $157,681.​

Purchase and sale operations increase in CABA​

However, it is not all bad news. In August, sales prices rose again for the second consecutive month by 0.3%, and the median price in the city stands at US$2,159/sqm. After recording 52 months of decline (since March 2019), prices are at levels similar to those of October 2015. Another key fact is that in 2023 the accumulated price decline is 1.8% less than that registered in previous years , and accumulates 18% so far this year.​

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To contextualize, in 2022, 88% of the neighborhoods registered price drops each month in their properties offered for sale. In August 2023, 58% of the neighborhoods register a monthly price increase . Added to this is another report made by the Association of Notaries of the Autonomous City of Buenos Aires that says that last July the real estate market in CABA showed signs of being in a recovery process , evidencing a beginning change of cycle in the industry dynamics​

The average amount of transactions reached $23,237,639, 30.17% more than a year ago.

The acts of deeds of sale registered an increase of 6.9% compared to the previous year , with a total of 3,357 operations. The total amount of transactions carried out in July was $78,008 million, which represents a growth of 39.3% year-on-year. This rise suggests that buyers are finding opportunities in the market more attractive , supporting the notion that prices may have bottomed out. Another interesting fact is that the average amount of transactions reached $23,237,639, 30.17% more than a year ago, additional testimony of the growing confidence in the stability of the sector.​

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However, it is crucial to highlight that the current panorama contrasts these encouraging data prior to the STEP. The uncertainty of the last few weeks as a result of the meteoric rise of the blue dollar, which reached 21.5% above the value registered on the last day before the primary elections, significantly affects a dollarized market such as property .

www.buysellba.com​