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The increase in rents is almost 900% in three years - La Nación Propiedades
Source:
www.lanacion.com.ar
November 09, 2023
The increase is above inflation and also the Lease Contract Index; the availability of units remains ironed
By Gabriela Origlia
In CABA and GBA the increase in rent in three years reaches almost 900% and in the interior it exceeds 700%
CÓRDOBA.- In the City of Buenos Aires (CABA), rents rose 13.2% in October , which implies an increase of 206.7% in one year and 175.1% in the first 10 months of 2023. The numbers exceed inflation, which in October would be between 9.2% and 9.8% according to private estimates; the year-on-year accumulated does not reach 150% and that from January to October, somewhat below 125%. In addition, the figures are also above the Lease Contracts Index (ICL) , which last month was 8.2% (119.1% year-on-year and 92.2% in the last 10 months).
The calculations are from the Economic Research Institute (IIE) of the Córdoba Stock Exchange based on data from Zonaprop . From the entity, Fabio Ventre explains to LA NACION that there is data from other platforms that are even giving higher increases. “ The offer is ironed out , even with some reductions,” he warns. According to Real Estate Report , the number of properties offered for rent in CABA fell 14% compared to September and 74% compared to October 2022.
The economist details that the increases analyzed are “the base, the floor” of what is recorded. The Mercado Libre numbers , for example, show an increase of 20.7% in the AMBA during October and, taking that platform, in CABA it would be around 21%.
The number of properties offered for rent in CABA fell 14% compared to September and 74% compared to October 2022, according to Real Estate Report
In Greater Buenos Aires (GBA), increases of 24% were recorded in the northern zone, 13% in the southern zone and 8.2% in the western zone, always according to data from Mercado Libre. IIE estimates for Córdoba and Rosario are around 15% for last month.
The August increase in CABA of 12.8% was the highest in the last decade, but after September it jumped 13.5%, even above last month. In August, after the devaluation after the PASO, the rental market came to a standstill. In the days following the open internal elections, the owners increased the rental values of the properties by more than 25% and preferred to delay the signing of the contracts . “From February to October are the nine months with the most increases since 2013 ,” adds Ventre, the tenth being July 2022.
The IIE also analyzes how the real estate market reacted to the last two rental laws . “In a negative way,” defines Ventre. In July 2020 , the first month of validity of the rule that has now been replaced, the increases were higher than the monthly inflation of 2%: the increase was 6% in the GBA; 8% in CABA; 9% in Rosario and 11% in Córdoba.
This behavior was repeated with the law passed last month , when only the western zone of the GBA would be “slightly” below inflation.
The Chamber of Deputies approved the modifications introduced in the Senate to the Rental Law last October
In the three years and three months that the law passed in July 2020 was in force, the behavior of rental prices shows that it was harmful for tenants; They increased up to 276 points above inflation , which, in that period, accumulated 616%, a record figure for the last 30 years.
Still, rents outpaced it. In the most important cities of Argentina, the increase in rents was between 710% and 892%. CABA records the worst results , increases of 892% between July 2020 and last September (276 percentage points above inflation).
The GBA comes in second place with increases of up to 874% in the northern zone (258 percentage points above inflation) and 850% in the western/south sector (234 points above the general price level).
In Rosario , prices rose up to 739% (123 points above inflation) and in Córdoba, 710%, 94 points more than the accumulated inflation in the 39 months of the rule.
In the city of Rosario, rents rose up to 739% since the law was passed in 2020
Ventre points out that the data contrasts with the three years and three months prior to the enactment of that law; Between April 2017 and June 2020, inflation was 203% and rents rose below that . In CABA they increased 164% in the period; in Greater Buenos Aires, between 133% and 148%, in Córdoba 153% and in Rosario, 114%.
CABA, as with the last norm, had the largest increases in that period but even so rents remained 40 percentage points below inflation.
In his opinion, the reduction of the update period from one year to six months “will not counteract” the effect of the duration of the contract for the supply: “Its impact will be more noticeable for the demand, since the tenants will be harmed by the greater frequency of updates in a context of high inflation .”
Regarding the change in the update index - the Casa Propia is now applied -, he points out that it will not encourage supply either since, in the best of cases, “ the evolution of rent will follow (with lags) inflation . ” In fact, if salaries evolve below the general price level (as has happened since 2020), the rent “will lose ground to inflation during the term of the contract.”
“This will lead to the current dynamic continuing and what happened with the 2020 law being replicated: market prices will continue to be high and rising, seeking to hedge against inflationary acceleration and uncertainty,” he adds.
www.buysellba.com
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El aumento de los alquileres es de casi a 900% en tres años, supera inflación y todos los índices
El aumento está por encima de la inflación y también del Índice de Contratos de Locación; la disponibilidad de unidades sigue planchada
www.lanacion.com.ar
November 09, 2023
The increase in rents is almost 900% in three years, surpasses inflation and all indices
The increase is above inflation and also the Lease Contract Index; the availability of units remains ironed
By Gabriela Origlia
In CABA and GBA the increase in rent in three years reaches almost 900% and in the interior it exceeds 700%
CÓRDOBA.- In the City of Buenos Aires (CABA), rents rose 13.2% in October , which implies an increase of 206.7% in one year and 175.1% in the first 10 months of 2023. The numbers exceed inflation, which in October would be between 9.2% and 9.8% according to private estimates; the year-on-year accumulated does not reach 150% and that from January to October, somewhat below 125%. In addition, the figures are also above the Lease Contracts Index (ICL) , which last month was 8.2% (119.1% year-on-year and 92.2% in the last 10 months).
The calculations are from the Economic Research Institute (IIE) of the Córdoba Stock Exchange based on data from Zonaprop . From the entity, Fabio Ventre explains to LA NACION that there is data from other platforms that are even giving higher increases. “ The offer is ironed out , even with some reductions,” he warns. According to Real Estate Report , the number of properties offered for rent in CABA fell 14% compared to September and 74% compared to October 2022.
The economist details that the increases analyzed are “the base, the floor” of what is recorded. The Mercado Libre numbers , for example, show an increase of 20.7% in the AMBA during October and, taking that platform, in CABA it would be around 21%.
The number of properties offered for rent in CABA fell 14% compared to September and 74% compared to October 2022, according to Real Estate Report
In Greater Buenos Aires (GBA), increases of 24% were recorded in the northern zone, 13% in the southern zone and 8.2% in the western zone, always according to data from Mercado Libre. IIE estimates for Córdoba and Rosario are around 15% for last month.
The August increase in CABA of 12.8% was the highest in the last decade, but after September it jumped 13.5%, even above last month. In August, after the devaluation after the PASO, the rental market came to a standstill. In the days following the open internal elections, the owners increased the rental values of the properties by more than 25% and preferred to delay the signing of the contracts . “From February to October are the nine months with the most increases since 2013 ,” adds Ventre, the tenth being July 2022.
The IIE also analyzes how the real estate market reacted to the last two rental laws . “In a negative way,” defines Ventre. In July 2020 , the first month of validity of the rule that has now been replaced, the increases were higher than the monthly inflation of 2%: the increase was 6% in the GBA; 8% in CABA; 9% in Rosario and 11% in Córdoba.
This behavior was repeated with the law passed last month , when only the western zone of the GBA would be “slightly” below inflation.
The Chamber of Deputies approved the modifications introduced in the Senate to the Rental Law last October
In the three years and three months that the law passed in July 2020 was in force, the behavior of rental prices shows that it was harmful for tenants; They increased up to 276 points above inflation , which, in that period, accumulated 616%, a record figure for the last 30 years.
Still, rents outpaced it. In the most important cities of Argentina, the increase in rents was between 710% and 892%. CABA records the worst results , increases of 892% between July 2020 and last September (276 percentage points above inflation).
The GBA comes in second place with increases of up to 874% in the northern zone (258 percentage points above inflation) and 850% in the western/south sector (234 points above the general price level).
In Rosario , prices rose up to 739% (123 points above inflation) and in Córdoba, 710%, 94 points more than the accumulated inflation in the 39 months of the rule.
In the city of Rosario, rents rose up to 739% since the law was passed in 2020
Ventre points out that the data contrasts with the three years and three months prior to the enactment of that law; Between April 2017 and June 2020, inflation was 203% and rents rose below that . In CABA they increased 164% in the period; in Greater Buenos Aires, between 133% and 148%, in Córdoba 153% and in Rosario, 114%.
CABA, as with the last norm, had the largest increases in that period but even so rents remained 40 percentage points below inflation.
With no forecast to improve
Regarding the availability of units for rent, the economist reviews that, with the law passed in October for demand "one of the most important entry barriers when accessing housing remains, such as the high costs linked to the conclusion of contracts ”In his opinion, the reduction of the update period from one year to six months “will not counteract” the effect of the duration of the contract for the supply: “Its impact will be more noticeable for the demand, since the tenants will be harmed by the greater frequency of updates in a context of high inflation .”
Regarding the change in the update index - the Casa Propia is now applied -, he points out that it will not encourage supply either since, in the best of cases, “ the evolution of rent will follow (with lags) inflation . ” In fact, if salaries evolve below the general price level (as has happened since 2020), the rent “will lose ground to inflation during the term of the contract.”
“This will lead to the current dynamic continuing and what happened with the 2020 law being replicated: market prices will continue to be high and rising, seeking to hedge against inflationary acceleration and uncertainty,” he adds.
www.buysellba.com
