BuySellBA
Administrator
Rentals without brake or solution
December 4, 2023
The 3 environments increased 338% on average last year in CABA. The new modification to the Rental Law would not have solved anything but rather complicated the situation even more.
The current Rental Law took the rental market to a place from which it is very difficult to get out. Rents being the only good or service in the entire Argentine economy that is practically frozen, it was to be expected that the owners would try to cover themselves from the projected inflation, adding it to the values of the new rents to be agreed upon. This led not only to a lack of supply never seen before but also to percentages of interannual increases never seen before and a very high degree of informality. The modification to the Rental Law in this last quarter would seem to have not solved anything but rather complicated even more the situation that had been experienced:
One-bedroom units had another strong acceleration in price increases in the last quarter, reaching 33.77%, making the increase 273.12% in the year-on-year comparison.
The citywide median value for used 1-bedroom apartments in November 2023 is $206,883, while 2-bedroom units are listed above $295,000. 2-bedroom units increased 37.58% during the last quarter, taking the year-on-year increase to no less than 337.90%, a percentage never seen before.
Last quarter the blame had been placed on the temporary workers, because now with the new modification of the Law that prohibits publishing in dollars, what is happening is that those properties previously offered in American currency are being published in pesos but taking the value of the dollar bill, which will cause the next statistics to show greater supply but at truly exorbitant values. New laws that continue to generate more distortions. Everything indicates that the only way is repeal, and this is being demonstrated by a survey that we will publish in the coming days.
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