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Why rents in GBA have risen less than inflation so far this year: how much they cost depending on the neighborhood - Infobae
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www.infobae.com
December 05, 2024
An analysis shows that they climbed 81% until November, when last year the increases were 156% in the suburbs. The reasons for the sharp slowdown
By Jose Luis Cieri
Rental prices in Greater Buenos Aires continue to rise but are below inflation, they are no longer increasing as they were at the beginning of the year and there is more negotiation between the parties (Illustrative Image Infobae)
Although renting remains expensive for many families, home rental prices have seen a sharp slowdown in the last year, in line with the drop in inflation. Specifically in Greater Buenos Aires (GBA), prices have risen 81% so far in 2024 , half of what they had increased a year ago, according to the latest Zonaprop report released this Thursday.
Prices in the west-south increased by 87.5% and in the north by 75.6%, with an annual average of 81% when averaging both radii of the GBA. This marks a slowdown compared to the 156% recorded a year ago, when values continued to rise. The trend changed after the repeal of the Rental Law and the greater supply of properties generated by these regulatory changes and the return of mortgage loans.
According to Zonaprop, the platform that carried out the work, the average rental price in GBA west-south increased 5.4% in November compared to the previous month.
“The rental market has shown a more moderate evolution in recent months, driven by the repeal of the 2020 Law and the increase in the supply of properties. These factors allowed prices to adjust more gradually, in line with inflation and the evolution of salaries. This represents a positive change, as it generates greater stability and predictability for both owners and tenants,” Lorena Bertomeu , from Bertomeu Properties, told Infobae.
A one-bedroom apartment costs $390,172, while a two-bedroom apartment has an average price of $515,376 per month.
Canning, Santos Lugares and Ezeiza are among the most expensive neighborhoods in the west-south area, with average prices of $515,528, $476,890 and $456,097 per month, respectively.
On the other hand, Gregorio de Laferrere is the most affordable, with a price of $265,467 per month. It is followed by Merlo ($301,912) and Villa Tesei ($319,987 per month).
Source: Zonaprop
Bertomeu added: “From our perspective, we always seek a balance between the needs of both parties. It is essential to ensure that owners protect their investment, while tenants can access prices that fit their economic capacity. We work to generate trust and reach agreements that reflect the reality of the market, and we maintain constant communication so that decisions are beneficial for everyone.”
Source: Zonaprop
Currently, rents in Merlo for one-bedroom apartments range from $280,000 to $330,000, while two-bedroom apartments range from $370,000 to $420,000, depending on whether they have a patio or garage. Two-bedroom houses with a park cost more than $550,000 per month.
"The most sought-after areas are the centre of Merlo and San Antonio de Padua," Bertomeu added.
Mariano Lazcano , who operates in the northern suburbs, said that in the north of the GBA, rents stopped registering the abrupt increases of previous years due to a change in the dynamics of supply and demand. “We see a more stable market because many owners opted for shorter contracts and more flexible conditions, which created a balance between what is asked and what tenants can pay. This flexibility prevented values from rising disproportionately.”
Source: Zonaprop
Olivos is positioned as the neighborhood with the most expensive rental offer, with a price of $609,333 per month. It is followed by La Lucila and Nordelta, with a value of $601,635 and $596,219 per month, respectively.
José León Suárez, on the other hand, remains the neighborhood with the most affordable housing, with an average price of $377,841 per month. It is followed by San Andrés ($405,269) and Villa Ballester ($427,877 per month).
“Furthermore, more moderate economic expectations had a direct impact on market performance. Owners prefer to keep their properties occupied, in contrast to what happened when the Rental Law was in force, rather than excessively adjust prices, especially in a context where the offer in certain locations has diversified with options for different segments,” Lazcano added.
"In recent months, mortgage loan transactions in the GBA showed significant growth, with a peak in inquiries in the middle of the year," said Gustavo Pérez , from Inmobiliaria O'Keefe.
Although demand has now stabilized, it remains strong. A large part of these enquiries come from end users who do not have employment ties with banks, a segment that uses this type of financing.
Pérez highlighted that, among the completed transactions, there are two-room apartments of 49 m2 in brand new developments, sold for USD 85,000, and houses with their own lot in residential areas of Quilmes, which were around USD 120,000.
“This context has allowed several buyers to re-evaluate the option of renting versus the possibility of purchasing property,” he concluded.
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Por qué los alquileres en GBA subieron menos que la inflación en lo que va del año: cuánto cuestan según el barrio
Un análisis muestra que treparon 81% hasta noviembre, cuando el año pasado las subas eran del 156% en el conurbano. Los motivos de fuerte desaceleración
www.infobae.com
December 05, 2024
An analysis shows that they climbed 81% until November, when last year the increases were 156% in the suburbs. The reasons for the sharp slowdown
By Jose Luis Cieri
Rental prices in Greater Buenos Aires continue to rise but are below inflation, they are no longer increasing as they were at the beginning of the year and there is more negotiation between the parties (Illustrative Image Infobae)
Although renting remains expensive for many families, home rental prices have seen a sharp slowdown in the last year, in line with the drop in inflation. Specifically in Greater Buenos Aires (GBA), prices have risen 81% so far in 2024 , half of what they had increased a year ago, according to the latest Zonaprop report released this Thursday.
Prices in the west-south increased by 87.5% and in the north by 75.6%, with an annual average of 81% when averaging both radii of the GBA. This marks a slowdown compared to the 156% recorded a year ago, when values continued to rise. The trend changed after the repeal of the Rental Law and the greater supply of properties generated by these regulatory changes and the return of mortgage loans.
According to Zonaprop, the platform that carried out the work, the average rental price in GBA west-south increased 5.4% in November compared to the previous month.
“The rental market has shown a more moderate evolution in recent months, driven by the repeal of the 2020 Law and the increase in the supply of properties. These factors allowed prices to adjust more gradually, in line with inflation and the evolution of salaries. This represents a positive change, as it generates greater stability and predictability for both owners and tenants,” Lorena Bertomeu , from Bertomeu Properties, told Infobae.
A one-bedroom apartment costs $390,172, while a two-bedroom apartment has an average price of $515,376 per month.
Canning, Santos Lugares and Ezeiza are among the most expensive neighborhoods in the west-south area, with average prices of $515,528, $476,890 and $456,097 per month, respectively.
On the other hand, Gregorio de Laferrere is the most affordable, with a price of $265,467 per month. It is followed by Merlo ($301,912) and Villa Tesei ($319,987 per month).
Source: Zonaprop
Bertomeu added: “From our perspective, we always seek a balance between the needs of both parties. It is essential to ensure that owners protect their investment, while tenants can access prices that fit their economic capacity. We work to generate trust and reach agreements that reflect the reality of the market, and we maintain constant communication so that decisions are beneficial for everyone.”
Source: Zonaprop
Currently, rents in Merlo for one-bedroom apartments range from $280,000 to $330,000, while two-bedroom apartments range from $370,000 to $420,000, depending on whether they have a patio or garage. Two-bedroom houses with a park cost more than $550,000 per month.
"The most sought-after areas are the centre of Merlo and San Antonio de Padua," Bertomeu added.
Less increases in the North
On the other hand, the report stated that the rental price in GBA North increased by 3.3% in November. A one-bedroom apartment is priced at $508,918, while a three-room apartment has an average value of $713,202 per month.Mariano Lazcano , who operates in the northern suburbs, said that in the north of the GBA, rents stopped registering the abrupt increases of previous years due to a change in the dynamics of supply and demand. “We see a more stable market because many owners opted for shorter contracts and more flexible conditions, which created a balance between what is asked and what tenants can pay. This flexibility prevented values from rising disproportionately.”
Source: Zonaprop
Olivos is positioned as the neighborhood with the most expensive rental offer, with a price of $609,333 per month. It is followed by La Lucila and Nordelta, with a value of $601,635 and $596,219 per month, respectively.
José León Suárez, on the other hand, remains the neighborhood with the most affordable housing, with an average price of $377,841 per month. It is followed by San Andrés ($405,269) and Villa Ballester ($427,877 per month).
“Furthermore, more moderate economic expectations had a direct impact on market performance. Owners prefer to keep their properties occupied, in contrast to what happened when the Rental Law was in force, rather than excessively adjust prices, especially in a context where the offer in certain locations has diversified with options for different segments,” Lazcano added.
Intention to buy and not to rent
The impact of mortgage loans and money laundering has generated a change in the dynamics of the GBA real estate market. Instead of looking for rentals, more and more people are approaching real estate agencies with the intention of buying, driven by better financing conditions and the possibility of taking advantage of the laundered money to acquire properties.
"In recent months, mortgage loan transactions in the GBA showed significant growth, with a peak in inquiries in the middle of the year," said Gustavo Pérez , from Inmobiliaria O'Keefe.
Although demand has now stabilized, it remains strong. A large part of these enquiries come from end users who do not have employment ties with banks, a segment that uses this type of financing.
Pérez highlighted that, among the completed transactions, there are two-room apartments of 49 m2 in brand new developments, sold for USD 85,000, and houses with their own lot in residential areas of Quilmes, which were around USD 120,000.
“This context has allowed several buyers to re-evaluate the option of renting versus the possibility of purchasing property,” he concluded.
www.buysellba.com
