Real Estate News Skyrocketing increases: neighborhood by neighborhood rental rates - Infobae

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Skyrocketing increases: neighborhood by neighborhood rental rates - Infobae



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Aumentos sin freno: barrio por barrio, cuánto cuesta alquilar un departamento de dos ambientes en CABA

Los valores siguen en ascenso, mientras crecen interrogantes sobre qué podrá pasar a futuro con la ley que debate el Congreso. Expertos señalan que la inflación, la alta demanda y los desafíos regulatorios son losfactores clave que explican el alza

www.infobae.com

August 31, 2023

Skyrocketing increases: neighborhood by neighborhood, how much does it cost to rent a two-room apartment in the Capital of Buenos Aires​

August 31, 2023

By: Jose Luis Cieri

It is difficult to find two-room apartments in pesos to rent in the city of Buenos Aires. The shortage of supply is the protagonist in all neighborhoods

The real estate market in the city of Buenos Aires has been the scene of a constant increase in the rental prices of one bedroom apartments, raising concerns about the reasons behind this upward trend.​

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1 bedroom apartments registered an increase of 166.7% year-on-year. Today in CABA, the average value of a 1 bedroom apartment is $198,873 per month, according to Zonaprop.​

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Leandro Molina , commercial director of the platform, told Infobae that 2023 has witnessed a marked increase in rental prices, caused by a combination of accelerating inflation and growing demand. "The demand pressure in CABA is maximum in studio apartments, which has influenced a lower price rise compared to the two environments."​

When analyzing the most affected neighborhoods, it is observed that Villa del Parque, San Cristóbal and Recoleta lead the increase in prices, with increases of 198.4%, 197.4% and 196.2% respectively in the last 12 months. This phenomenon is attributed to a series of mismatches, including the country's economic situation and current rental legislation.​

“There are neighborhoods in Buenos Aires where 1 bedroom apartment units are not available for rent through the traditional format, such as Parque Avellaneda, Parque Patricios or Agronomía, among others.​

Damián Alarcón , from Salguero Propiedades, commented to Infobae that the reasons behind the increase in rents are linked to the distortion generated by high inflation, an effect that plays a central role in this phenomenon.​

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“The initial price established at the beginning of the contract often lags behind due to the high levels of inflation in the country. In this context, the owners establish higher initial prices to mitigate the losses derived from inflation, ”he highlighted.​

In 2023, the increase in the rental price is 114%, while in 2022 the registered increase was 59% in the same period.​

"This rise of almost double that is registered this year has to do with the accelerated inflation that we are experiencing and the great demand that there is in rentals," said Molina.​

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Of the little that there is if the houses have their own balcony or terrace, they are rented even faster

Regarding the public that is looking for 1 bedroom apartments, Alarcón mentioned that couples and young professionals between 25 and 35 years old are the main interested parties. “The high demand leads to situations where larger families are also looking for these types of properties due to the lack of supply in the rental market,” he commented.​

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“In the case of one-bedroom units, which present greater flexibility for alternative businesses such as temporary rentals, the owner who tries to preserve his investment against inflation finds himself with a growth in demand. In this situation, they add to the tenants who usually look for this configuration, those who must opt for a smaller space due to the impossibility of accessing a three-room unit”, said Ernesto Turale , lawyer and broker at Turale Inmobiliaria.​

"The initial price established at the beginning of the contract often lags behind due to the high levels of inflation in the country" (Alarcón).​

Currently, while the possible reform of the Rental Law is being discussed (which is now in the national Senate and its treatment would be delayed for about 15 days) after Deputies gave it a half sanction, it is sought to return to contracts with a duration of two years instead of three, and annual, semi-annual or four-monthly adjustments, free between parties and that take another index that combines owners and tenants, such as contracts tied to the Consumer Price Index (CPI), among others.​

In relation to contract extensions and terminations, Alarcón stressed that the common practice is to sign new contracts for three years or terminate them. “This is due to the inability of many tenants to cope with the annual increases, which are linked to inflation and often exceed the increase in wages,” he noted.​

Values​

The monthly rental prices for properties with 1 bedroom apartments and in pesos in CABA according to Zonaprop are published below:​

Nuñez: $270,728.​

Coghlan: $260,689.​

Palermo: $260,146.​

College students: $242,102.​

Withdrawal: $241,783.​

Villa Urquiza: $240,786.​

Belgrano: $238,809.​

Villa Crespo: $237,901.​

Recoleta: $233,126.​

Horse: $216,967.​

Almagro: $214,636.​

Villa Pueyrredón: $213,818.​

Saavedra: $213,785.​

Chacarita: $211,723.​

Chacabuco Park: $209,480.​

Villa Ortuzar: $207,633.​

Villa del Parque: $206,609.​

Villa Devoto: $204,065.​

Villa General Miter: $199,937.​

Boedo: $197,963.​

San Cristobal: $192,867.​

Santa Rita: $188,114.​

Flowers: $184,632.​

Monserrat: $177,056.​

Saint Nicholas: $175,936.​

Barracks: $173,053.​

Balvanera: $172,398.​

Liniers: $172,374.​

San Telmo: $171,513.​

Forest: $170,113.​

Constitution: $167,970.​

Velez Sarsfield: $157,681.

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