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Rentals: what are the new conditions under which contracts are signed today? - La Nacion Propiedades - La Nacion Propiedades
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www.lanacion.com.ar
February 17, 2025
The combination of greater supply, more affordable prices and contractual flexibility opened a new chapter for the rental market
Rentals:CrizzyStudio - Shutterstock
The rental market underwent significant changes throughout 2024 , following the repeal of the rental law - on December 29, 2023, when DNU 70/2023 came into force - which changed the rules of the game . This regulatory change eliminated the mandatory three-year term and the annual adjustments regulated by the Rental Contracts Index (ICL), and semi-annual adjustments by Casa Propia (after the update in October 2023) - the latter being just a few - , allowing greater flexibility in agreements between tenants and landlords.
At the beginning of 2024, adjustments began to be made mostly every two or three months , taking the Consumer Price Index (CPI) and lasting two years; however, the slowdown in inflation, combined with a significant increase in the supply of properties, allowed these conditions to be reconsidered again .
The relaxation of contractual conditions brought about a notable recovery in the market . According to data from the Real Estate Observatory, the supply of rental properties grew by 200% compared to the period regulated by the rental law. This increase had a positive impact on prices, which rose below inflation, resulting in an average real decrease of 36.8% .
Landlords , previously reluctant to rent due to the restrictions imposed, have returned to the market encouraged by the possibility of negotiating terms, adjustments and payment conditions with greater freedom. For their part, tenants find more options available and have room to make counteroffers, which are increasingly accepted.
Under what conditions are new rental contracts signed?Wasan Tita - Shutterstock
What would have to happen for adjustments to be more spaced out? Specialists agree that the key to further extending adjustment periods lies in the continuation of the inflationary slowdown . With a more stable economic environment, owners would feel more confident in offering contracts with half-yearly adjustments , a scenario that until recently seemed unattainable.
A key fact shared by the survey is about the distribution of rental supply by neighborhood. In this sense, it mentions that there are six neighborhoods that cover more than half of the supply of the entire city of Buenos Aires, these are: Palermo (being the one with the largest supply, with 22.62%), Belgrano , Recoleta , Barrio Norte , Caballito and Puerto Madero , which concentrate 58.96% of all the rental supply in the city .
Palermo is the neighborhood with the highest rental offerShutterstock
In numbers, the average rent for a studio apartment in the city is $474,633 per month , a one-bedroom apartment can be rented for $566,025 , while a two-bedroom apartment can be rented for $761,505, according to the real estate platform.
www.buysellba.com
Source:
Alquileres: cuáles son las nuevas condiciones bajo las que se firman los contratos hoy
La combinación de mayor oferta, precios más accesibles y flexibilidad contractual abrió un nuevo capítulo para el mercado de alquileres
www.lanacion.com.ar
February 17, 2025
The combination of greater supply, more affordable prices and contractual flexibility opened a new chapter for the rental market
Rentals:CrizzyStudio - Shutterstock
The rental market underwent significant changes throughout 2024 , following the repeal of the rental law - on December 29, 2023, when DNU 70/2023 came into force - which changed the rules of the game . This regulatory change eliminated the mandatory three-year term and the annual adjustments regulated by the Rental Contracts Index (ICL), and semi-annual adjustments by Casa Propia (after the update in October 2023) - the latter being just a few - , allowing greater flexibility in agreements between tenants and landlords.
At the beginning of 2024, adjustments began to be made mostly every two or three months , taking the Consumer Price Index (CPI) and lasting two years; however, the slowdown in inflation, combined with a significant increase in the supply of properties, allowed these conditions to be reconsidered again .
The relaxation of contractual conditions brought about a notable recovery in the market . According to data from the Real Estate Observatory, the supply of rental properties grew by 200% compared to the period regulated by the rental law. This increase had a positive impact on prices, which rose below inflation, resulting in an average real decrease of 36.8% .
Landlords , previously reluctant to rent due to the restrictions imposed, have returned to the market encouraged by the possibility of negotiating terms, adjustments and payment conditions with greater freedom. For their part, tenants find more options available and have room to make counteroffers, which are increasingly accepted.
Under what conditions are new rental contracts signed?Wasan Tita - Shutterstock
The new dynamics of contracts
The report from the Buenos Aires Real Estate Association reveals that 90% of current rental agreements are agreed in pesos, even though they are allowed to be agreed in foreign currency, and are closed with quarterly adjustments , for 24 months and using the CPI indicator , even though some are still being agreed under the ICL. This trend reflects a consensus between the parties to achieve more balanced agreements adapted to the inflationary context. Despite these changes, there are still tenants with contracts in force under the old regulations .What would have to happen for adjustments to be more spaced out? Specialists agree that the key to further extending adjustment periods lies in the continuation of the inflationary slowdown . With a more stable economic environment, owners would feel more confident in offering contracts with half-yearly adjustments , a scenario that until recently seemed unattainable.
A key fact shared by the survey is about the distribution of rental supply by neighborhood. In this sense, it mentions that there are six neighborhoods that cover more than half of the supply of the entire city of Buenos Aires, these are: Palermo (being the one with the largest supply, with 22.62%), Belgrano , Recoleta , Barrio Norte , Caballito and Puerto Madero , which concentrate 58.96% of all the rental supply in the city .
Palermo is the neighborhood with the highest rental offerShutterstock
How much does it cost to rent in CABA
Rental prices for properties published on real estate sites in the city of Buenos Aires registered an average increase in the publication value of 2.8% in the month of January , and did so above inflation, which was 2.2% in January, according to the index published every month by Zonaprop .In numbers, the average rent for a studio apartment in the city is $474,633 per month , a one-bedroom apartment can be rented for $566,025 , while a two-bedroom apartment can be rented for $761,505, according to the real estate platform.
www.buysellba.com
