BuySellBA
Administrator
Rents: Increases above 300 %
December 13, 2023
The average interannual increase in the rental supply of used apartments as of November was 300.14%. Offer data and values in CABA by neighborhood
Last November the number of used 1 to 4 room apartments available for rent, which were published on property search engines, experienced an increase, for the first time in more than a year, reaching 822 units. Month by month, since October 2022, the number of apartments formally offered for three-year rentals had been decreasing until last month it reached a total of only 532 units on offer.
The increase in supply, as well as the significant jump in prices in some typologies, is due to the adaptation to the limitations of publishing prices in foreign currency imposed by the latest modification to the rental law. Thus, a part of the units advertised in dollars were converted into pesos at an exchange rate close to the blue and another directly appealed to the legend “check price” without specifying the monetary value of the location in the advertisement.
The current figure is 55% higher than the previous month, but despite the increase experienced, it is still less than half of that available in November 2022 when there were 1,817 units on offer.
The largest number of used apartments offered for 3 years in pesos is concentrated in the 2 rooms with 411 units. The number of 3-room apartments on offer reached 186 and 179 studio apartments. Finally, with 46 units, the largest 3-bedroom apartments are the units with the lowest availability, despite the fact that precisely this typology was the one that grew the most in number. last month due to the mandatory change in the currency of expression of the price in the notices.
The data arises from the comparison of the figures with which Reporte Inmobiliario nourishes its bases and that it obtains from applying new data mining technologies to all the offer publications available on the Internet that can be clearly identified as used apartments offered for traditional rental. 3 years with prices in pesos.
The increase in the number of offers was accompanied by a new acceleration of the increase in its initial price, as a result of the change from dollars to pesos in the prices of publications. This dynamic was even more evident in the 4-room units, which reached an average value of $550,000, which compared to the average $340,000 last October represents a month-on-month increase of 83.33%.
Although the percentage increase is extremely high, it is nothing more than a reflection of what was actually already present in the market, it was just not transparent as that offer was not present in previous months because it was expressed directly in dollars.
Continuing with the prices, the average value of the existing offer for a 1-room unit, last November, was $215,000 per month, while the average rental value of a 2-room unit reached $261,500 and the Units with 2 bedrooms were quoted on average $375,000.
In light of the data, it is evident that the modification to the rental law, recently implemented, did not work in favor of improving the conditions of accessibility to the housing rental market. Although experiences of excess regulations in rental markets historically worsened rather than resolved the inconveniences they sought to mitigate, within a context of instability and very high inflation such as the one Argentina is currently experiencing, its failure was even more evident.
www.buysellba.com
