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Rents show signs of stabilizing: last quarter's increases are the lowest since 2020 -Infobae
Source:
www.infobae.com
December 13, 2024
Although year-on-year values exceed 125% increase towards the end of the year, the apartments published for new contracts show prices without the same upward inertia of the beginning of 2024
By Jose Luis Cieri
Signing a new rental contract. Current values show more moderate increases compared to a year ago, favored by the drop in inflation and a greater supply (Illustrative Image Infobae)
A recent private survey of rental prices in the city of Buenos Aires, corresponding to November, showed a slowdown in quarterly increases. Since December 2023, increases began to moderate, although year-on-year values remain high: 125.12% in the case of two-bedroom apartments and 137.09% in one-bedroom apartments, both below the accumulated inflation in the same period ( 166% according to Indec ).
The most notable thing is that, when measured quarterly, the latest analysis of costs for renting used apartments by Reporte Inmobiliario recorded an increase of 12.9% between September and November, the lowest since June 2020, when the Rental Law, repealed by the Government, came into force.
The average price of one-bedroom apartments reached $490,500, while two-bedroom units exceeded $664,900 in the last quarter.
Germán Gómez Picasso , from Reporte Inmobiliario, told Infobae : “The repeal was definitely a complete success. The supply grew 10 times and the values slowed down their upward momentum, which was out of control. The world takes this measure as an example ( in fact, in Italy they are thinking of copying something from the DNU ). The repeal had an echo in the main international media.”
Although the accumulated increases exceed 125%, they no longer reach the 250% recorded at the end of last year, when owners rejected the 2020 Law or only accepted extensions instead of new contracts. This situation has normalized, and there are currently 16,000 apartments for rent in CABA, a number in line with the historical average.
The repeal of the Act led to an increase in the number of rental properties on the main real estate portals (ranging from 175% to 200% since last January), which helped to slow the rise in prices.
"However, the structural problems of the market persist, as the number of available properties does not cover the growing housing demand," added Gómez Picasso.
More expensive one-bedroom apartments
Cheaper one-bedroom apartments
More expensive two-bedroom apartments
www.buysellba.com
Source:
Los alquileres muestran signos de estabilización: los aumentos del último trimestre son los más bajos desde 2020
Aunque los valores interanuales superan el 125% de aumento hacia el cierre del año, los departamentos publicados para nuevos contratos muestran precios sin la misma inercia alcista de comienzos de 2024
www.infobae.com
December 13, 2024
Although year-on-year values exceed 125% increase towards the end of the year, the apartments published for new contracts show prices without the same upward inertia of the beginning of 2024
By Jose Luis Cieri
Signing a new rental contract. Current values show more moderate increases compared to a year ago, favored by the drop in inflation and a greater supply (Illustrative Image Infobae)
A recent private survey of rental prices in the city of Buenos Aires, corresponding to November, showed a slowdown in quarterly increases. Since December 2023, increases began to moderate, although year-on-year values remain high: 125.12% in the case of two-bedroom apartments and 137.09% in one-bedroom apartments, both below the accumulated inflation in the same period ( 166% according to Indec ).
The most notable thing is that, when measured quarterly, the latest analysis of costs for renting used apartments by Reporte Inmobiliario recorded an increase of 12.9% between September and November, the lowest since June 2020, when the Rental Law, repealed by the Government, came into force.
The average price of one-bedroom apartments reached $490,500, while two-bedroom units exceeded $664,900 in the last quarter.
Germán Gómez Picasso , from Reporte Inmobiliario, told Infobae : “The repeal was definitely a complete success. The supply grew 10 times and the values slowed down their upward momentum, which was out of control. The world takes this measure as an example ( in fact, in Italy they are thinking of copying something from the DNU ). The repeal had an echo in the main international media.”
Although the accumulated increases exceed 125%, they no longer reach the 250% recorded at the end of last year, when owners rejected the 2020 Law or only accepted extensions instead of new contracts. This situation has normalized, and there are currently 16,000 apartments for rent in CABA, a number in line with the historical average.
Quarterly evolution and effects of the repeal
The quarterly performance data reflect the slowdown in increases since the end of 2023, and are as follows:- March to May 2023: +63%.
- June to August 2023: +73%.
- September to November 2023: +37.6%.
- December 2023 to February 2024: +29.1%.
- March to May 2024: +27.8%.
- June to August 2024: +20.7%.
- September to November 2024: +12.9%.
The repeal of the Act led to an increase in the number of rental properties on the main real estate portals (ranging from 175% to 200% since last January), which helped to slow the rise in prices.
"However, the structural problems of the market persist, as the number of available properties does not cover the growing housing demand," added Gómez Picasso.
Variations
The evolution of values in 2024 also reflects significant differences depending on the area:- 1-bedroom apartments Highest annual increase: Agronomía (+217%) and Liniers (+215%). Lowest annual increase: San Cristóbal (+56%) and Palermo (+59%).
- 2-broom apartments Highest annual increase: Liniers (+233%) and Barracas (+224%). Lowest annual increase: San Cristóbal (+19%) and Monserrat (+34%).
Some values in CABA
Below are the average rental prices for two- and three-room apartments in the 5 most expensive and cheapest neighborhoods, according to data from Reporte Inmobiliario (excluding Puerto Madero, where all prices are in dollars):More expensive one-bedroom apartments
- Belgrano C: $520.000.
- Las Cañitas: $500.000.
- Recoleta: $480.000.
- Villa Crespo: $460.000.
- Belgrano R: $450.000.
Cheaper one-bedroom apartments
- La Boca: $300.000.
- Constitución: $300.000.
- Liniers: $300.000.
- Barracas: $280.000.
- Parque Avellaneda: $250.000.
More expensive two-bedroom apartments
- Recoleta: $800.000.
- Palermo: $770.000.
- Las Cañitas: $700.000.
- Belgrano C: $600.000.
- Barrio Norte: $600.000.
Cheaper two-bedroom apartments
- Parque Patricios: $430.000.
- Agronomía: $420.000.
- La Boca: $400.000.
- Parque Avellaneda: $400.000.
- Floresta: $380.000.
Housing deficit
Argentina faces a housing shortage that worsens year after year. Despite the construction work carried out by the public and private sectors, 50,000 more homes are added each year, a result of natural growth and immigration.www.buysellba.com
