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Rents in CABA rose more than 220% in the last twelve months
November 28, 2023
This was detected by a private report that also revealed in the last eight months, consecutively, the increase in values was above 10% monthly
By José Luis Cieri
Making a new rental contract is becoming more and more expensive in CABA. The monthly costs of a home are difficult to cover for an average wage earner (Illustrative image Infobae)
Renting in the city of Buenos Aires becomes more expensive every month and prices rise at a rate that complicates the pockets of tenants, according to a private report that also noted that new contracts have accumulated an increase of 220.4% in the last twelve months.
Furthermore, the rental value increases by 10.4% in November and there have been eight consecutive months with increases above 10%, so the trend is far from reversing.
According to research by Zonaprop, a 40 m2 studio apartment is rented in CABA for $238,542 per month on average, a two-room apartment of 50 m2 averages $282,389 per month and a three-room apartment of 70 m2 has a price of $391,261 per month.
According to specialized sources, the monthly increases that affect the domestic economy of those who must adjust their amounts, such as when signing a new contract, are not the only problem. The situation worsens for those looking for housing.
Daniela Miguens is a tenant whose contract expired in September and she was forced to agree to a 6-month extension. “We agreed with the owner on a 150% increase, going from $130,000 to $325,000 until next March. We are looking for another property, but in areas like Recoleta, Palermo or Villa Crespo, the options are scarce and rarely go below $400,000 per month. It is impossible. And to that we must add the expenses,” she commented to Infobae .
Today the search for spacious apartments to rent becomes a real challenge, especially in CABA and its surroundings.
Source: Zonaprop
Mariano García Malbrán , president of the Argentine Chamber of Real Estate Services Companies, highlighted to Infobae that “the problem persists in the search for all types of housing. But it is more pronounced in tenants who need large apartments, such as families with more than two children or those who share their home with older adults. Also, in the case of professionals who require extra space to telework.”
More and less expensive
According to Zonaprop research, Palermo is the most expensive Buenos Aires neighborhood to rent, with a value of $426,861 per month. They are followed by Belgrano ($426,028) and Núñez ($416,735 per month). Puerto Madero is not included in the survey because its quotes are published in dollars or for temporary contracts.
Source: Zonaprop
On the other hand, Barracas is the most affordable neighborhood for $217,496 per month, followed by Constitución and Floresta, with $240,545 and $262,614 per month, respectively.
North Corridor, Northwest Corridor and Central Axis are the areas with the highest rental prices: $414,189 pesos per month, $366,161 and $310,291 pesos per month, respectively. On the contrary, the Southeast of Buenos Aires ($260,001 per month) and the West ($257,524) are the cheapest.
Source: Zonaprop
According to the report, Saavedra led the increase in the last year with an impressive 347%, closely followed by Retiro, with 345.4%, and Belgrano, with 338.5% in year-on-year terms. In contrast, Villa General Miter registered the smallest increase, with 211% in the same period.
In purchase and sale
The prices of advertisements published on the portal registered a monthly increase of 0.2% in November. Since July 2023, there has been a change in trend and it has accumulated 0.8% since then.A 40 m2 studio apartment has an average price of USD 95.1891 for sale, while a two-room apartment of 50 m2 is worth USD 114,364 and a three-room apartment of 70 m2 is at $158,989.
Source: Zonaprop
Although in 2022, 83% of the neighborhoods registered a price decrease each month, in November 2023 the trend reversed and 58% of the neighborhoods registered a monthly price increase.
The volume of deeds in the City in October was 53% higher than the same month last year. So far this year there has been an increase of 22% compared to 2022.
Gabriel Brodsky, CEO of Predial, explained that “Argentina at the level of real estate values is in liquidation. The prices at which we are selling today are similar in dollars to 10 or 12 years ago. For this reason, there are users and investors with saved savings who made the decision to buy to take advantage of the prices and take advantage of it. There are two drivers, people who grow in m2 and move from a two-bedroom to a three-bedroom, or from a three to a four-bedroom, and another profile of the public that privileges the location and gains quality of life.”
Source: Zonaprop
The ranking of real estate purchase and sale prices is headed by Puerto Madero, the most expensive of the CABA neighborhoods, with a value of USD 5,690 per m2. They are followed by Palermo (USD 2,999) and Belgrano (USD 2,742 per m2).
On the contrary, Lugano, Nueva Pompeya and La Boca are the cheapest neighborhoods with a price of USD 996, USD 1,332 and 1,412 per m2, respectively.
