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Without the repealed law and with active supply, the rent for a one-bedroom apartment in CABA averages 566,000 pesos per month - Infobae
Source:
www.infobae.com
February 01, 2025
This emerges from a private survey that also specifies that in the last 12 months the price increased by 39.7%, the lowest year-on-year increase since July 2020. Why small apartments are the ones that increased the most and which neighborhoods generate the most income for owners
rent, apartment, flat, housing, real estate, properties, rent, rent (Illustrative Image Infobae)
The supply of rental properties in the city of Buenos Aires has expanded by almost 200% since DNU 70 came into effect, which deregulated the rental market. Currently, the rent for a one-bedroom apartment, according to a private analysis, averages $566,000 per month .
According to a survey by Zonaprop, the monthly price of a one-bedroom apartment registered a year-on-year increase of 39.7%, the lowest rate since July 2020 .
Currently, the average monthly increase is 2.8%; well below the inflation that closed at 117.8% in 2024 , and the adjustment of the Lease Contract Index (ICL), which was 190.69% for those who must update the values in January and 174.41% for those who must do so in February, for having contracts made under the law repealed in February, as already reported by Infobae .
Source: Zonaprop
“Prices slowed sharply in 2024 and are currently moving below inflation and the Rental Contracts Index (ICL) adjustment,” the report from the specialized platform indicated.
The price evolution also shows significant growth in smaller apartments.
Studio apartments , for example, have an average rent of $474,633 and 2-bedroom apartments at $761,505 per month .
Mariana Lucángeli , architect and real estate expert, told Infobae that “high demand, driven by both single-person households and local and foreign couples, was key to this dynamic . ”
In contrast, the smaller increase in larger units (below 2% per month) is due to their high initial value and low turnover.
A relevant factor is the marked expansion of supply, this trend stabilized, and by January 2025 the supply registered a decrease of 6% compared to the previous month , although the current number of available units is 3.1 times higher than that registered in February 2023 .
“The regulatory flexibility allowed the contract period and the update periods to be freely set. Generally, agreements are made for two years, with quarterly or four-monthly adjustments through the Consumer Price Index (CPI) or ICL,” said Lucángeli.
At the other extreme, Puerto Madero , Palermo and Núñez lead as the most expensive areas, with average values of $926,707, $629,241 and $626,602 per month , respectively.
In this regard, Lucángeli added that “the expansion of supply occurred in most neighborhoods, but was more pronounced in areas with a higher proportion of available investment properties, such as Palermo, Recoleta and Caballito . ”
An average one-bedroom apartment is purchased for USD 123,785 and a two-bedroom apartment for USD 170,512 , while the value is around USD 2,339 per square meter.
Among the most expensive neighborhoods are again Puerto Madero , with USD 6,032, Palermo , with USD 3,235, and Núñez , with a value of USD 3,030 per m2.
The cheapest offer is concentrated in Villa Lugano (USD 1,019), Nueva Pompeya (USD 1,396) and Parque Avellaneda (USD 1,508 per m2).
Villa Lugano, Parque Avellaneda and La Boca occupy the podium of neighborhoods with the best options for investors looking for income, with a return of 9%, 7.5% and 7.1%, respectively .
On the other hand, Puerto Madero, Palermo and Belgrano are the neighborhoods with the lowest profitability, with 3.3%, 4.2% and 4.4%, respectively .
Short-term projections remain moderate. Supply growth and initial adjustments to rental contracts appear to have slowed the pace of increases compared to previous years.
“The new rental units that are entering the market start at a lower initial price ,” according to Lucángeli. And they reflect a strategy to attract demand in a context of high competition. However, the sustainability of this scenario will depend on macroeconomic factors such as inflation and the policies that govern the sector.
www.buysellba.com
Source:
Sin la ley derogada y con oferta activa, el alquiler de un dos ambientes en CABA promedia los 566.000 pesos mensuales
Así surge de un relevamiento privado que también precisa que en los últimos 12 meses el precio aumentó un 39,7%, la menor suba interanual desde julio de 2020. Por qué los departamentos chicos son los que más aumentaron y qué barrios son los que generan mayor renta a los propietarios
www.infobae.com
February 01, 2025
This emerges from a private survey that also specifies that in the last 12 months the price increased by 39.7%, the lowest year-on-year increase since July 2020. Why small apartments are the ones that increased the most and which neighborhoods generate the most income for owners
rent, apartment, flat, housing, real estate, properties, rent, rent (Illustrative Image Infobae)
The supply of rental properties in the city of Buenos Aires has expanded by almost 200% since DNU 70 came into effect, which deregulated the rental market. Currently, the rent for a one-bedroom apartment, according to a private analysis, averages $566,000 per month .
According to a survey by Zonaprop, the monthly price of a one-bedroom apartment registered a year-on-year increase of 39.7%, the lowest rate since July 2020 .
Currently, the average monthly increase is 2.8%; well below the inflation that closed at 117.8% in 2024 , and the adjustment of the Lease Contract Index (ICL), which was 190.69% for those who must update the values in January and 174.41% for those who must do so in February, for having contracts made under the law repealed in February, as already reported by Infobae .
Source: Zonaprop
“Prices slowed sharply in 2024 and are currently moving below inflation and the Rental Contracts Index (ICL) adjustment,” the report from the specialized platform indicated.
What happens to the values
Despite increased supply and reduced pressure on prices, smaller apartments are leading the increases due to high demand in a context of lower purchasing power . This trend underlines the impact of economic and regulatory changes on tenant preferences.The price evolution also shows significant growth in smaller apartments.
Studio apartments , for example, have an average rent of $474,633 and 2-bedroom apartments at $761,505 per month .
Mariana Lucángeli , architect and real estate expert, told Infobae that “high demand, driven by both single-person households and local and foreign couples, was key to this dynamic . ”
In contrast, the smaller increase in larger units (below 2% per month) is due to their high initial value and low turnover.
A relevant factor is the marked expansion of supply, this trend stabilized, and by January 2025 the supply registered a decrease of 6% compared to the previous month , although the current number of available units is 3.1 times higher than that registered in February 2023 .
“The regulatory flexibility allowed the contract period and the update periods to be freely set. Generally, agreements are made for two years, with quarterly or four-monthly adjustments through the Consumer Price Index (CPI) or ICL,” said Lucángeli.
The most expensive and cheapest
In territorial terms, the most affordable neighborhoods to rent within CABA are Villa Lugano , with an average monthly cost of $424,900; Floresta , with $486,183; and Mataderos , where rent reaches $494,843 per month.
At the other extreme, Puerto Madero , Palermo and Núñez lead as the most expensive areas, with average values of $926,707, $629,241 and $626,602 per month , respectively.
In this regard, Lucángeli added that “the expansion of supply occurred in most neighborhoods, but was more pronounced in areas with a higher proportion of available investment properties, such as Palermo, Recoleta and Caballito . ”
Stability in buying and selling
Furthermore, these changes in rent coincided with a slight increase in sales prices according to Zonaprop.An average one-bedroom apartment is purchased for USD 123,785 and a two-bedroom apartment for USD 170,512 , while the value is around USD 2,339 per square meter.
Among the most expensive neighborhoods are again Puerto Madero , with USD 6,032, Palermo , with USD 3,235, and Núñez , with a value of USD 3,030 per m2.
The cheapest offer is concentrated in Villa Lugano (USD 1,019), Nueva Pompeya (USD 1,396) and Parque Avellaneda (USD 1,508 per m2).
The most profitable
Despite these figures, real estate profitability has improved slightly: it is now 5.26% per year. Currently, it takes 19 years of renting to recover the investment , an increase of 1.3% compared to 2023.Villa Lugano, Parque Avellaneda and La Boca occupy the podium of neighborhoods with the best options for investors looking for income, with a return of 9%, 7.5% and 7.1%, respectively .
On the other hand, Puerto Madero, Palermo and Belgrano are the neighborhoods with the lowest profitability, with 3.3%, 4.2% and 4.4%, respectively .
Short-term projections remain moderate. Supply growth and initial adjustments to rental contracts appear to have slowed the pace of increases compared to previous years.
“The new rental units that are entering the market start at a lower initial price ,” according to Lucángeli. And they reflect a strategy to attract demand in a context of high competition. However, the sustainability of this scenario will depend on macroeconomic factors such as inflation and the policies that govern the sector.
www.buysellba.com
