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Rents: the unexpected data, rents increase below inflation - La nacion Propiedades
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Alquileres: el dato inesperado, los alquileres aumentan por debajo de la inflación
De acuerdo a un informe, el aumento acumulado durante el año pasado fue menor al Índice de Precios al Consumidor (IPC) que publica el INDEC
www.lanacion.com.ar
January 07, 2025
According to a report, the accumulated increase during the last year was less than the Consumer Price Index (CPI) published by INDEC
How much does it cost to rent an apartment in the city of Buenos Aires? Fabian Marelli - THE NATION
In the midst of a real estate context that underwent notable changes throughout 2024 , following the repeal of the rental law , the market in the city of Buenos Aires closed the year with a trend that had not been seen since 2019 : the listing prices of apartments for rent registered a real drop . This means that the accumulated increase during the past year was lower than the inflation index published monthly by the National Institute of Statistics and Census (INDEC).
In concrete numbers, the average rental listing price for a two-room, 50 m² apartment in the City rose by 2.3% in December compared to the previous month, accumulating an annual increase of 64.4% , according to the latest Zonaprop report . This figure reflects a drastic drop compared to the increase in 2023 , which was 260% (almost four times higher) and is 47 percentage points below national inflation , which accumulated 112% in November, according to INDEC.
Another relevant fact is that the prices of new contracts also rose below the adjustment of the Rental Contract Index (ICL), which is used to annually adjust the contracts that were signed under the rental law (until October 2023), which registered an increase of 194.5% in 2024. The most marked slowdown occurred in February, when the prices of new contracts increased by 2.9% compared to January, a month in which the increase had been 21%.
Evolution of average listing values for a one-bedroom apartment in the city of Buenos Aireszonaprop
The impact of the repeal of the rental law - on December 29, 2023 - was one of the key factors behind this price slowdown. In turn, another resounding change in the market was the supply of apartments intended for traditional rental , which systematically decreased since the pandemic and in competition with temporary rentals, reaching a historic low in February 2023, but in January 2024, after the end of the regulations, this trend had a resounding change and increased by 62% compared to the previous month. Throughout last year, these increases continued, although with less intensity in recent months: in December, the supply grew by 3.3% and accumulated a total increase of 195% throughout the year .
Rental prices on the market
An average 40 m² studio apartment in December had a listing price of around $465,091 , on average; a 50 m² one-bedroom apartment went for $550,450 ; while a 70 m² two-bedroom apartment went for $740,874 per month.The most expensive neighborhoods to rent
- Puerto Madero: $941.093
- Núñez: $613.414
- Palermo: $610.098
Those who are in a medium price
- Chacarita: $572.937
- Retiro: $539.910
- San Telmo: $533.240
- Agronomía: $507.982
- Balvanera: $500.168
The cheapest
- Vélez Sarsfield: $485.671
- Floresta: $474.456
- Lugano: $395.326
The year-on-year increases deserve special mention . In this case, Nueva Pompeya and Parque Patricios are the neighborhoods that showed the highest increase in their listing prices compared to the previous year, according to the real estate platform, with 110.9% and 94.8% , respectively. While on the other hand, there are Chacarita (20.6%), Retiro (17.8%) and Agronomía (15.7%).
Annual variation in rental prices in the city of Buenos Aireszonaprop
Where to buy an apartment to rent
The profitability of rental properties in the city of Buenos Aires has improved in recent years . In December 2024, the rent-to-price ratio rises and stands at 5.28% annually . Thus, 18.9 years of renting are now needed to recover the investment , 8.9% more than what was required a year ago.In this sense, the best neighborhoods for investors looking for income are: Lugano , with 8.7%, Nueva Pompeya , with 8%, and Parque Avellaneda , with 7.4%. While, on the other hand, the following are located: Belgrano (4.4%), Palermo (4.2%) and Puerto Madero (3.5%), as the areas that offer the lowest profitability.
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