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The Rental Law is dead: Since November, the supply has grown by 148% in the AMBA - El Cronista
Source:
July 30, 2024
In the last month, contract prices grew above inflation. However, in the annual comparison they are still below the CPI.
The effects of the repeal of the Rental Law at the end of last year are still being felt in the market . A report carried out by Mercado Libre together with the University of San Andrés highlights that the supply of houses and apartments for rent in the metropolitan area of Buenos Aires (AMBA) grew by 148% if the data for the current month are compared with those for November 2024.
The survey highlights that in the last month rental prices registered monthly variations above inflation , which in June was 4.6%. Thus, the average value per square meter for an apartment had an increase of 5.6% and that of a house increased by 10.8% . If broken down by area, the cost of rent increased by 11.9% in the north, 10.4% in the south and 8.3% in the west.
Meanwhile, for apartment rentals, inter-monthly price variations of 5.4% were observed in the city , 7.7% in the north, 4.4% in the south and 4.5% in the west.
Despite the increases in the last month, if we consider the year-on-year increase, rental prices grew below inflation , which in the period accumulated 271.5%. In the case of houses, they had an average increase of 164.2% in the north, 173.5% in the south and 195.4% in the west. On the other hand, in the apartment market, year-on-year variations of 109.1% were observed in the city , 129.4% in the north, 174.5% in the south and 188.4% in the west.
The city district where the highest monthly increase in apartment rental prices was seen was Palermo (11.3%) . Meanwhile, in Greater Buenos Aires, the highest increase in house rental prices was seen in Tigre (15.1%) , while Vicente López, with 12%, showed the highest increase for apartments.
Lower the dispersion
In the sales market, the report highlights that there was a reduction in the dispersion of prices per m2 for the sale of apartments in the northern area of Greater Buenos Aires . Between February and July of this year, the difference between the maximum and minimum price was US$29.3 per m2. In the six months prior to this, it was US$53.9."This change in behavior could suggest a stabilization in the apartment sales market in that agglomeration," the document explains.
Demand for property purchases increased in July
More demand
In addition, during this month there was an increase in demand, measured through contacts . In this regard, the demand for properties for sale of houses and apartments registers an increase of 28.5% compared to July 2023. This increase in demand would be explained by a combination of factors among which are the greater dynamism of the industry in recent times , to which is added the reactivation of mortgage loans in recent months.House sales prices in the AMBA fell by 5.9% year-on-year . Apartment prices, on the other hand, registered a variation of 3.6% compared to July 2023.
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