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So far in 2023, Buenos Aires rental prices have increased 143%: which are the most expensive and the cheapest neighborhoods - Infobae
Source:
www.infobae.com
October 02, 2023
A private report specifies that renting a one-bedroom, 50 m2 apartment costs an average of $225,802 per month. Prices in dollars grow.
By Jose Luis Cieri
There is a lot of concern among tenants who increasingly have to pay more pesos for renting a home in CABA.
While the national Congress continues to review the possible reform of the Rental Law, enacted in 2020, a private analysis of the real estate market in the city of Buenos Aires confirmed a new record of price increases. According to the report, so far in 2023, home rental values have experienced a cumulative increase of 143% until September.
The study also details that rental price in CABA increased by 13.5% last month. Since April, he points out, increases have exceeded 10% in month-on-month terms.”
According to the work of the Zonaprop portal, the rental value of a studio apartment in CABA is $177,379 per month, a one-bedroom apartment reaches $225,802 and a two-bedroom unit with 70 square meters is rented for $292,558 per month.
Regarding the factors that contribute to the increase in rents, beyond the shortage of supply, Leandro Molina, commercial director of Zonaprop, explained that inflation is “one of the parameters considered” in the Lease Contract Index (ICL) which leads to rents increasing at this rate. “However, there are owners who, in the face of economic uncertainty, choose to publish their properties with higher values as a way to protect themselves from future inflation,” he told Infobae .
Experts on the subject argue that a reform of the law is crucial and consider that for owners to offer their properties again in the traditional rental market, it would be ideal to return to two-year contracts with semi-annual or quarterly adjustments.
In this way, supply could be improved and, consequently, prices balanced, which are currently difficult for salaried workers to afford.
Source: Zonaprop
“It is essential to provide certainty to the market through legislation that benefits both tenants and owners. In this way, supply could be increased and the market balanced, facilitating access to housing,” Molina added.
Source: Zonaprop. Here how rent increases behaved year-on-year and during 2023.
“Over the course of the last 12 months, the neighborhoods that have experienced the largest price increases are Caballito, Núñez, San Cristóbal and Villa Urquiza. These areas are highly in demand and are located in strategic locations in the city with good access. Given their high demand, it is precisely these neighborhoods where values tend to rise the most, especially in the face of the limited supply available in the market,” Molina said.
In the middle zone are Saavedra ($246,806 per month), Parque Chacabuco ($241,432) and San Cristóbal ($229,973 per month).
And the cheapest to rent are Floresta ($183,919 per month), Liniers ($184,948) and Barracas ($190,208 per month).
Source: Zonaprop
CABA rentals
“In this context, the dollarization of rents offers owners a way to obtain some predictability in the monthly income they will receive from the property during the duration of the contract,” he added.
The value of a studio apartment for sale is USD 94,401; A one-bedroom apartment of 50 m2 has an average value of $113,672. A two-bedroom apartment of 70 m2 costs $158,878.
CABA rentals
The number of delayed notices on the portal remains stable at around 22%, a trend that has been in force for several months.
“We believe that the sale prices would be about to reach their floor. Counteroffers are no longer accepted due to demand, and many owners have understood that adjusting prices has energized the sector. According to the latest report from the College of Notaries of the City of Buenos Aires, 4,135 deeds were registered last August. Despite the devaluation after the PASO, it was the best month in four years. There is still a market of opportunities and we estimate that, before the end of the year, those who have dollars will invest them in the brick," Mariano Lo Valvo, from the real estate company of the same name, assured Infobae .
The price ranking by neighborhood is headed by Puerto Madero (USD 5,699 per m2), Palermo (USD 2,967 per m2) and Belgrano (USD 2,732 per m2).
The cheapest neighborhoods in the city are Lugano (USD 1,013 per m2), Nueva Pompeya (USD 1,364 per m2) and La Boca (USD 1,429 per m2).
By Jose Luis Cieri
www.buysellba.com
Source:
En lo que va de 2023, los precios de los alquileres porteños aumentaron 143%: cuáles son los barrios más caros y los más baratos
Un informe privado precisa que alquilar un departamento de dos ambientes y 50 m2 cuesta en promedio $225.802 mensuales. Crecen las cotizaciones en dólares
www.infobae.com
October 02, 2023
A private report specifies that renting a one-bedroom, 50 m2 apartment costs an average of $225,802 per month. Prices in dollars grow.
By Jose Luis Cieri
There is a lot of concern among tenants who increasingly have to pay more pesos for renting a home in CABA.
While the national Congress continues to review the possible reform of the Rental Law, enacted in 2020, a private analysis of the real estate market in the city of Buenos Aires confirmed a new record of price increases. According to the report, so far in 2023, home rental values have experienced a cumulative increase of 143% until September.
The study also details that rental price in CABA increased by 13.5% last month. Since April, he points out, increases have exceeded 10% in month-on-month terms.”
According to the work of the Zonaprop portal, the rental value of a studio apartment in CABA is $177,379 per month, a one-bedroom apartment reaches $225,802 and a two-bedroom unit with 70 square meters is rented for $292,558 per month.
Regarding the factors that contribute to the increase in rents, beyond the shortage of supply, Leandro Molina, commercial director of Zonaprop, explained that inflation is “one of the parameters considered” in the Lease Contract Index (ICL) which leads to rents increasing at this rate. “However, there are owners who, in the face of economic uncertainty, choose to publish their properties with higher values as a way to protect themselves from future inflation,” he told Infobae .
Experts on the subject argue that a reform of the law is crucial and consider that for owners to offer their properties again in the traditional rental market, it would be ideal to return to two-year contracts with semi-annual or quarterly adjustments.
In this way, supply could be improved and, consequently, prices balanced, which are currently difficult for salaried workers to afford.
Source: Zonaprop
“It is essential to provide certainty to the market through legislation that benefits both tenants and owners. In this way, supply could be increased and the market balanced, facilitating access to housing,” Molina added.
Which are the most expensive and the cheapest?
Currently, Núñez is positioned as the most expensive Buenos Aires neighborhood with an average price of $320,362 per month for one-bedrooms. Palermo and Colegiales follow with $300,732 and $291,229 per month, respectively.
Source: Zonaprop. Here how rent increases behaved year-on-year and during 2023.
“Over the course of the last 12 months, the neighborhoods that have experienced the largest price increases are Caballito, Núñez, San Cristóbal and Villa Urquiza. These areas are highly in demand and are located in strategic locations in the city with good access. Given their high demand, it is precisely these neighborhoods where values tend to rise the most, especially in the face of the limited supply available in the market,” Molina said.
In the middle zone are Saavedra ($246,806 per month), Parque Chacabuco ($241,432) and San Cristóbal ($229,973 per month).
And the cheapest to rent are Floresta ($183,919 per month), Liniers ($184,948) and Barracas ($190,208 per month).
Source: Zonaprop
Dollarized scenario
According to various portals specialized in the real estate sector, approximately 70% of the rental supply is dollarized, and a large proportion of these are for temporary contracts.According to the rental advertisements published in Zonaprop, an increase in dollarized offers is observed, particularly in the northern corridor of the city. Molina attributes this trend to inflation and the economic instability that the country is going through at the moment.
CABA rentals
“In this context, the dollarization of rents offers owners a way to obtain some predictability in the monthly income they will receive from the property during the duration of the contract,” he added.
Purchase and sale: slight increase in price
The prices of advertisements published on the portal once again registered a monthly increase, rising 0.2% in September. Since June they have risen 0.6%, however, in 2023 the accumulated decrease is 1.6 percent.The value of a studio apartment for sale is USD 94,401; A one-bedroom apartment of 50 m2 has an average value of $113,672. A two-bedroom apartment of 70 m2 costs $158,878.
CABA rentals
The number of delayed notices on the portal remains stable at around 22%, a trend that has been in force for several months.
“We believe that the sale prices would be about to reach their floor. Counteroffers are no longer accepted due to demand, and many owners have understood that adjusting prices has energized the sector. According to the latest report from the College of Notaries of the City of Buenos Aires, 4,135 deeds were registered last August. Despite the devaluation after the PASO, it was the best month in four years. There is still a market of opportunities and we estimate that, before the end of the year, those who have dollars will invest them in the brick," Mariano Lo Valvo, from the real estate company of the same name, assured Infobae .
The price ranking by neighborhood is headed by Puerto Madero (USD 5,699 per m2), Palermo (USD 2,967 per m2) and Belgrano (USD 2,732 per m2).
The cheapest neighborhoods in the city are Lugano (USD 1,013 per m2), Nueva Pompeya (USD 1,364 per m2) and La Boca (USD 1,429 per m2).
By Jose Luis Cieri
www.buysellba.com
