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Unstoppable: rent increase is the highest in decade up 514% in one year - La Nación
Source:
www.lanacion.com.ar
September 12, 2023
By: Gabriela Origlia
A study by the Economic Research Institute (IIE) of the Córdoba Stock Exchange shows the rent increases published in the last year in CABA and GBA
CÓRDOBA.- The increase in the market price of rentals in the City of Buenos Aires (CABA) last month was 12.8%, the highest in the last 10 years. The data is from the Economic Research Institute (IIE) of the Córdoba Stock Exchange. The annualized increase is equivalent to 326% (that is, against August 2022). In the case of Greater Buenos Aires (GBA), the number is even higher: 14.2% and 16.3% depending on the area.
Fabio Ventre, IIE economist, explains to LA NACION that although the data is significant “it cannot be said that it was something isolated, because prices have been accelerating month by month, and for 10 consecutive months the increase has been above inflation".
In the GBA, increases in market rents last month reached 14.2% in the west/south zone and 16.3% in the north. Those rates, annualized, give 393% and 514% .
After the PASO, the owners increased the rental values of the properties by more than 25% and preferred to delay the signing of the contracts.
Last month, 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 .
“ The law passed in 2020, the lack of supply and inflation generated a nuclear bomb in this market in which demand validates any price is direct,” assessed Germán Gómez Picasso, director of Real Estate Report, in those days. Their surveys from the last 10 days indicate that the year-on-year increase in single-bedrooms was 289% and in two-bedrooms, 250%.
The IIE also includes data from the Lease Contract Index (ICL) in its report, but warns that there is a lag in the inflation/salary relationship. In August this variation was 8.1% monthly and 155.5% in the interannual comparison. The ICL is the index that defines the adjustment of the annual renewal of contracts in force.
The work is carried out on Zonaprop data ; In the northern GBA, the published price for rentals that begin a contract has risen 99.4% so far this year, above inflation, while in the west-south zone, the accumulated increase in 2023 is 94.3% .
Olivos and Vicente López are the most expensive neighborhoods to rent in the northern area
The average rental price for a two-bedroom apartment in the northern area of Buenos Aires is $173,890 per month, while for a three -bedroom apartment it is $224,337. Olivos and Vicente López are the most expensive neighborhoods, with prices of $256,443 and $233,381 per month, respectively. The lowest are San Miguel, $117,957; Belén de Escobar, $135,979 and San Fernando, $137,982.
In the southwest of the province of Buenos Aires, renting a 1 bedroom apartment costs $122,339 per month, while a 2 bedroom rents for $154,666 per month. Canning is the most expensive neighborhood at $162,644; Wilde ($159,613 per month) and Castelar ($146,470 per month).
The IIE also includes data from the Lease Contract Index (ICL) in its report, but warns that there is a lag in the inflation/salary relationship. In August this variation was 8.1% monthly and 155.5% in the inter-annual comparison. The ICL is the index
By: Gabriela Origlia
Source:
Imparable: el aumento del alquiler es el más alto de la última década y ya alcanza hasta 514% en un año
El incremento anualizado en CABA equivale al 326% y en GBA entre 393% en zona oeste/sur y alcanza 514% en zona norte
www.lanacion.com.ar
September 12, 2023
By: Gabriela Origlia
A study by the Economic Research Institute (IIE) of the Córdoba Stock Exchange shows the rent increases published in the last year in CABA and GBA
CÓRDOBA.- The increase in the market price of rentals in the City of Buenos Aires (CABA) last month was 12.8%, the highest in the last 10 years. The data is from the Economic Research Institute (IIE) of the Córdoba Stock Exchange. The annualized increase is equivalent to 326% (that is, against August 2022). In the case of Greater Buenos Aires (GBA), the number is even higher: 14.2% and 16.3% depending on the area.
Fabio Ventre, IIE economist, explains to LA NACION that although the data is significant “it cannot be said that it was something isolated, because prices have been accelerating month by month, and for 10 consecutive months the increase has been above inflation".
In the GBA, increases in market rents last month reached 14.2% in the west/south zone and 16.3% in the north. Those rates, annualized, give 393% and 514% .
After the PASO, the owners increased the rental values of the properties by more than 25% and preferred to delay the signing of the contracts.
Last month, 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 .
“ The law passed in 2020, the lack of supply and inflation generated a nuclear bomb in this market in which demand validates any price is direct,” assessed Germán Gómez Picasso, director of Real Estate Report, in those days. Their surveys from the last 10 days indicate that the year-on-year increase in single-bedrooms was 289% and in two-bedrooms, 250%.
The IIE also includes data from the Lease Contract Index (ICL) in its report, but warns that there is a lag in the inflation/salary relationship. In August this variation was 8.1% monthly and 155.5% in the interannual comparison. The ICL is the index that defines the adjustment of the annual renewal of contracts in force.
The work is carried out on Zonaprop data ; In the northern GBA, the published price for rentals that begin a contract has risen 99.4% so far this year, above inflation, while in the west-south zone, the accumulated increase in 2023 is 94.3% .
Olivos and Vicente López are the most expensive neighborhoods to rent in the northern area
The average rental price for a two-bedroom apartment in the northern area of Buenos Aires is $173,890 per month, while for a three -bedroom apartment it is $224,337. Olivos and Vicente López are the most expensive neighborhoods, with prices of $256,443 and $233,381 per month, respectively. The lowest are San Miguel, $117,957; Belén de Escobar, $135,979 and San Fernando, $137,982.
In the southwest of the province of Buenos Aires, renting a 1 bedroom apartment costs $122,339 per month, while a 2 bedroom rents for $154,666 per month. Canning is the most expensive neighborhood at $162,644; Wilde ($159,613 per month) and Castelar ($146,470 per month).
The IIE also includes data from the Lease Contract Index (ICL) in its report, but warns that there is a lag in the inflation/salary relationship. In August this variation was 8.1% monthly and 155.5% in the inter-annual comparison. The ICL is the index
By: Gabriela Origlia
