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The rental offer in CABA increased by 1,180% in one year: why studio apartments have increased more and how much they are worth - Infobae
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La oferta de alquileres en CABA aumentó 1.180% en un año: por qué los monoambientes subieron más y cuánto valen, barrio por barrio
Así lo reveló un informe privado que detalló la suba interanual por tipo en el sector de usados. Qué pasará con los valores y hacia qué escenario se va sin Ley de Alquileres
www.infobae.com
January 25, 2025
The rental offer in CABA increased by 1,180% in one year: why studio apartments have increased more and how much they are worth, neighborhood by neighborhood
This was revealed by a private report detailing the year-on-year increase by type in the used sector. What will happen to the values and what scenario will we be heading towards without the Rental Law?
By Jose Luis Cieri
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A young man walks through a studio apartment to rent, now there are options and a variety of prices. There is also negotiation to find a meeting point with the owner (Illustrative Image Infobae)
The real estate rental market in the city of Buenos Aires has undergone a significant change in the last year after the Government's DNU repealed the Rental Law, with a significant increase in the supply of used properties and a particular behavior in prices.
According to data provided by Reporte Inmobiliario, during December 2024, the number of used apartments offered for rent exceeded 7,000 units, a stark contrast to the scant 551 properties available in the same month in 2023.
This jump represents a 12.8-fold increase in supply, according to the specialized platform. José Rozados , from Reporte Inmobiliario, explained that “the main factor without a doubt was the repeal of the rental law and with its fall the possibility of freely setting the term of the contract and the periods of updates.”
The easing of regulations, which allowed for more dynamic conditions to be established in contracts, facilitated this growth in supply.
The sector maintains that new units are coming onto the market with more conservative initial prices, as inflationary adjustments are not anticipated as in previous years. This trend has reduced rent increases by placing them below inflationary levels.
"The new units that are entering the market start at a lower initial price," said Rozados.
Studio apartments at the forefront of increases
Although the growth in supply slowed the pace of increases, studio and one-bedroom apartments lead the increases in listing prices during 2024.The price of one-bedroom apartments or studio apartments increased by 58.6% year-on-year, while the price of two-bedroom apartments increased by 58.04%. The price of three- and four-bedroom apartments increased by 38.9% and 25%, respectively.
Rozados explained: “High demand, driven by single-person households as well as local and foreign couples, was key to this dynamic. In contrast, larger units, such as four-room apartments, showed more moderate increases due to their high initial value and a lower degree of competition.”
The preferences of households are usually less influenced by the volatility of more affordable offers, concentrated in smaller units.
Territorial distribution of the offer
The reconfiguration of the rental market was also reflected in its distribution by neighborhood. Traditional areas such as Palermo, Recoleta, Belgrano and Caballito experienced the greatest expansions in supply, according to Reporte Inmobiliario, thanks to the high presence of investor properties intended for rent.However, in other areas with a lower concentration of available units, the impact was not as marked as in Versalles, Agronomía, La Boca , among others. “The expansion of the offer occurred in most neighborhoods,” added Rozados, although he highlights the proportion of investment properties available in each area as a determining factor.
These changes in supply and distribution had a direct impact on demand. During 2022 and 2023, the few available rentals were quickly competed for by numerous interested parties, a phenomenon that seems to have moderated in 2024.
Outlook and possible future changes
The future of the rental market is linked to numerous factors, such as the evolution of inflation, macroeconomic stability and housing policies.Rozados said that "as long as the trend towards macro stability continues, we will not experience a period of increases that exceed the already lower inflation rates."
He also stressed that the dismantling of contractual rigidities without a Rental Law could continue to promote flexibility in terms of adjustments and conditions, adapting to the tenants' ability to pay.
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Rent increases in CABA are below inflation (Illustrative Image Infobae)
Another variable that could influence the future of the sector is the potential development of mortgage loans. Rozados pointed out that this type of financing could discourage renting for certain segments of the population. “Today, fortunately and as is reasonable for any society, there is the option for those who choose to buy a home with credit and stop renting,” he said.
This change would not only alleviate demand in certain areas, but would also boost activity in the real estate sales market, which has been stagnant for years in many sectors.
In transformation
The general analysis of Reporte Inmobiliario highlights that the changes introduced with the flexibility of the rental market generated positive effects in the short term, which reflected an increase in supply and less pressure on listing prices.However, it is expected that these conditions will continue to adapt based on inflationary trends and the purchasing power of potential tenants. In addition, the balance between those who choose to rent versus those who manage to buy property could significantly modify market dynamics.
Prices
Below are the average prices for studio apartments or one-room apartments by neighborhood, according to Real Estate Report (Puerto Madero is excluded because the prices are in dollars):- Belgrano: $460.000.
- Núñez: $450.000.
- Recoleta: $450.000.
- Palermo: $440.000.
- Villa Urquiza: $430.000.
- Retiro: $420.000.
- Almagro: $400.000.
- Villa Devoto: $400.000.
- Saavedra: $395.000.
- Chacarita: $390.000.
- Caballito: $380.000.
- Parque Chas: $377.000.
- Chacarita: $375.000.
- San Telmo: $370.000.
- Villa Crespo: $360.000.
- Montserrat: $360.000.
- Parque Chacabuco: $360.000.
- Floresta: $355.000.
- Villa del Parque: $350.000.
- Villa Ortúzar: $350.000.
- Liniers: $350.000.
- Balvanera: $335.000.
- La Boca: $335.000.
- La Paternal: $335.000.
- Monte Castro: $330.000.
- Flores: $330.000.
- Parque Patricios: $320.000.
- Boedo: $320.000.
- Constitución: $315.000.
- Mataderos: $300.000.
- Villa Lugano: $290.000.
- Villa Riachuelo: $290.000.
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