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Why did the rental market in Buenos Aires fall by 16% after the boom caused by the repeal of the law? - Infobae
Source:
www.infobae.com
March 26, 2025
This was confirmed by a private analysis that also confirmed which neighborhoods are the most sought after for rent, the profitability, and also what is happening with the buying and selling market.
By Jose Luis Cieri
A person hands over the key to an apartment during a rental agreement. This moment marks the beginning of a new contract and a new phase for the tenant. (Illustrative image: Infobae)
After reaching a record number of listings (up 180% by the end of 2024) following the repeal of the Rental Law, the rental market in Buenos Aires began to show signs of adjustment.
According to data from a recent analysis by the Buenos Aires Real Estate Association, the supply of rental properties has grown 149.44% since the end of December, following the entry into force of Decree 70/2023, but has fallen 15.94% in the last two months, with a drop of 8.65% in February alone.
Why did the number of properties available for rent decrease when just a few months ago there was talk of a historic recovery?
"The explanation lies in the natural readjustment of the market. The units that were rented in January and February were not replaced at the same rate. Even so, the current volume is still more than sufficient to meet demand," said Miguel Chej Muse , coordinator of the College's Real Estate Market Statistical Observatory.
Currently, there are around 14,000 properties for rent, while by the end of 2024, there were estimated to be more than 16,600 apartments listed in various neighborhoods.
The dynamic is also due to a greater channeling of real estate into buying and selling, driven primarily by mortgage loans .
With an improvement in market activity, many units offered for rent were put up for sale, accentuating the reduction in rental stock. "The sales market is very active, and this has led to a partial transfer of properties. Furthermore, the recovery in profitability has allowed us to absorb part of the initial supply," explained Chej Muse.
The six neighborhoods with the most listings are Palermo, Belgrano, Recoleta, Puerto Madero, Caballito, and Barrio Norte. They account for 56.90% of the total listings (published on various portals). Palermo is the neighborhood with the most listings, with 3,093 properties, representing 19.99% of the total.
For thousands of tenants, maintaining rent remains a heavy burden. The loss of purchasing power over the past 18 months has yet to be recovered, and although inflationary momentum is clearly declining, contract adjustments are no longer having the same impact as they did until the middle of last year. In many households, housing expenditure exceeds 35% of income .
This level of performance represents a recovery from previous years, when margins were below 3%. "Today, renting is once again positioning itself as a solid investment option, with monthly income in hard currency and in a context of a contained dollar," explained Chej Muse.
The change in contractual terms also marked a difference compared to the previous scenario. Most new contracts are signed for 24 months, in pesos, with quarterly adjustments tied to the Consumer Price Index (CPI). This scheme, more predictable for both parties, helped stabilize the relationship between landlords and tenants. However, rentals are no longer as fast as before. "There is more inventory, more competition, and longer vacancy periods. Properties that used to rent in a day can now take up to a month," he noted.
A couple tours a home with the intention of buying it (Illustrative Image Infobae)
Market absorption, measured as the percentage of units sold out of the total published, was 3.55% in January. Depleting current stocks would take 28 months at the current sales rate.
Alejandro Moretti , a member of the board of directors of the Buenos Aires Real Estate Association, explained that this situation is due to a general readjustment. "When the law was repealed, many properties that had been held up went up for rent. This generated an initial oversupply that was then absorbed over the months," he explained. In this process, many units were sold or left off the traditional market.
Moretti also highlighted the impact of mortgage lending. "Today, out of every ten sales transactions, almost two are completed with some type of financing. That was unthinkable until recently," he remarked.
He also noted that there are still people who buy with funds from money laundering schemes or previous investments, which keeps demand strong. "Buyers understand that they can access more meters today than tomorrow. And that's why they make decisions quickly."
The registered area for new construction during this period is 165,181 m2, representing a decrease of 13.27 percent.
The neighborhood with the most permits issued was Villa Urquiza, with 9 permits, representing 13.64% of the total. Meanwhile, the neighborhood with the largest registered area was Núñez, with 21,760 m2, or 13.17% of the total.
www.buysellba.com
Source:
Por qué cayó 16% la oferta de alquileres en CABA luego del boom que provocó la derogación de la ley
Así lo confirmó un análisis privado que también confirmó cuales son los barrios más buscados para alquilar, la rentabilidad y también lo que ocurre con el mercado de compra venta
www.infobae.com
March 26, 2025
This was confirmed by a private analysis that also confirmed which neighborhoods are the most sought after for rent, the profitability, and also what is happening with the buying and selling market.
By Jose Luis Cieri
A person hands over the key to an apartment during a rental agreement. This moment marks the beginning of a new contract and a new phase for the tenant. (Illustrative image: Infobae)
After reaching a record number of listings (up 180% by the end of 2024) following the repeal of the Rental Law, the rental market in Buenos Aires began to show signs of adjustment.
According to data from a recent analysis by the Buenos Aires Real Estate Association, the supply of rental properties has grown 149.44% since the end of December, following the entry into force of Decree 70/2023, but has fallen 15.94% in the last two months, with a drop of 8.65% in February alone.
Why did the number of properties available for rent decrease when just a few months ago there was talk of a historic recovery?
"The explanation lies in the natural readjustment of the market. The units that were rented in January and February were not replaced at the same rate. Even so, the current volume is still more than sufficient to meet demand," said Miguel Chej Muse , coordinator of the College's Real Estate Market Statistical Observatory.
Currently, there are around 14,000 properties for rent, while by the end of 2024, there were estimated to be more than 16,600 apartments listed in various neighborhoods.
The dynamic is also due to a greater channeling of real estate into buying and selling, driven primarily by mortgage loans .
With an improvement in market activity, many units offered for rent were put up for sale, accentuating the reduction in rental stock. "The sales market is very active, and this has led to a partial transfer of properties. Furthermore, the recovery in profitability has allowed us to absorb part of the initial supply," explained Chej Muse.
The six neighborhoods with the most listings are Palermo, Belgrano, Recoleta, Puerto Madero, Caballito, and Barrio Norte. They account for 56.90% of the total listings (published on various portals). Palermo is the neighborhood with the most listings, with 3,093 properties, representing 19.99% of the total.
Prices down
Market prices also played a role. Since January 2024, real rental values have fallen by an average of 36.3%, falling below the cumulative inflation rate. This decline has also begun to be reflected in nominal values, with landlords accepting counteroffers to avoid vacancies. Chej Muse explained: “There is more negotiation today than there was six months ago. Counteroffers have become common, and many landlords are agreeing to close for less than their initial asking price.”
For thousands of tenants, maintaining rent remains a heavy burden. The loss of purchasing power over the past 18 months has yet to be recovered, and although inflationary momentum is clearly declining, contract adjustments are no longer having the same impact as they did until the middle of last year. In many households, housing expenditure exceeds 35% of income .
Improved profitability
Despite this drop in prices, rental yields improved. For contracts signed in January, the average annual gross yield is 5.87%, measured on two-bedroom apartments in average areas and using the Mexican peso as a reference.This level of performance represents a recovery from previous years, when margins were below 3%. "Today, renting is once again positioning itself as a solid investment option, with monthly income in hard currency and in a context of a contained dollar," explained Chej Muse.
The change in contractual terms also marked a difference compared to the previous scenario. Most new contracts are signed for 24 months, in pesos, with quarterly adjustments tied to the Consumer Price Index (CPI). This scheme, more predictable for both parties, helped stabilize the relationship between landlords and tenants. However, rentals are no longer as fast as before. "There is more inventory, more competition, and longer vacancy periods. Properties that used to rent in a day can now take up to a month," he noted.
Expansion in purchase and sale operations
On the buying and selling side, the market shows signs of expansion. In January, 3,645 deeds were signed in the City, a year-over-year increase of 93.68% . Despite the low seasonality of the month, the trend is clearly upward. In the last twelve months, 56,524 deeds were signed, with a sustained monthly average.
A couple tours a home with the intention of buying it (Illustrative Image Infobae)
Market absorption, measured as the percentage of units sold out of the total published, was 3.55% in January. Depleting current stocks would take 28 months at the current sales rate.
Alejandro Moretti , a member of the board of directors of the Buenos Aires Real Estate Association, explained that this situation is due to a general readjustment. "When the law was repealed, many properties that had been held up went up for rent. This generated an initial oversupply that was then absorbed over the months," he explained. In this process, many units were sold or left off the traditional market.
Moretti also highlighted the impact of mortgage lending. "Today, out of every ten sales transactions, almost two are completed with some type of financing. That was unthinkable until recently," he remarked.
He also noted that there are still people who buy with funds from money laundering schemes or previous investments, which keeps demand strong. "Buyers understand that they can access more meters today than tomorrow. And that's why they make decisions quickly."
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According to the Buenos Aires Real Estate Association's monthly report, 66 permits for new construction were issued in January 2025. This represents a decrease of 8.33% compared to the previous month.
The registered area for new construction during this period is 165,181 m2, representing a decrease of 13.27 percent.
The neighborhood with the most permits issued was Villa Urquiza, with 9 permits, representing 13.64% of the total. Meanwhile, the neighborhood with the largest registered area was Núñez, with 21,760 m2, or 13.17% of the total.
www.buysellba.com
