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One-bedroom rentals in Buenos Aires City are already costing $600,000 a month: what type of adjustment is appropriate? CPI or ICL? - La Nacion Propiedades
Source:
www.ambito.com
September 23, 2025
By Jose Luis Cieri
Without the Rental Law, prices aren't increasing at the same rate as a year ago. What are the recommendations when signing a new contract?
A couple signs the rental contract next to the auctioneer at a real estate agency in Buenos Aires. Pexels
The rental market in the City of Buenos Aires is experiencing a period of relative stability in published prices, while contracts are being adjusted according to reference indices. According to the September report by the Scalabrini Ortiz Center for Economic and Social Studies (CESO) , median prices were $500,000 for a studio apartment, $600,000 for a one-bedroom apartment, and $800,000 for a two-bedroom apartment.
In all cases, monthly variation was zero, while year-over-year increases ranged between 33% and 39%. CESO confirmed that the starting point values for new contracts did not increase; the price stability coincided with an increase in supply.
Expenses also impact tenants' pockets: they represent an average of 23% of the rent. In practice, a $600,000 lease can result in a monthly expense exceeding $730,000 when the expenses are added.
Another CESO finding is that 26% of publications are in dollars, reflecting the persistence of dollarized contracts in a context of exchange rate instability.
Evolution of indices
The evolution of the rental indexes became the focus of the negotiations. The Rental Contract Index (CCI), compiled by the Central Bank, is at its lowest level in almost three years. This reduction provides relief for tenants who signed their contracts under this type of contract, although the discussion today focuses on whether the CCI or the Consumer Price Index (CPI) should be applied.
Alejandro Moretti , from the Buenos Aires Real Estate Association, explained that the drop in the ICL is due to the lag with which inflation is calculated. "The inflationary drop observed since June 2024 has a delayed impact, so the downward trend has been consolidating since late 2024 and early 2025. This is a relief for tenants who signed their contracts under this update method," he noted.
For Moretti, when signing a new contract, it's more convenient to use the CPI. "It's the index most accepted by parties when entering into a rental contract for housing. There are fewer and fewer properties available for less than $600,000, and most of them are in the southern part of the city," he noted.
The supply of apartments for rent in the city grew 31% in one year and prices show monthly stability.
Valencia Neira Real Estate
Mariano Lo Valvo , a real estate specialist, agreed that falling inflation favors the CPI as a benchmark. "The decrease in the CPI is positive compared to the LCI and is the most advisable method for new contracts, which mostly have quarterly adjustments and are already below inflation," he indicated.
According to Lo Valvo, the oversupply of units explains the stability of prices and, in some cases, even small reductions in new properties on the market. “This dynamic has led some tenants to opt out of their contracts early after finding better prices in the current market. The available options allow for more favorable conditions in a context that seems to be offering greater flexibility,” he added.
The trend toward CPI-adjusted contracts is consolidating in a scenario where supply far exceeds demand. The impact of expenses, which in many cases determine the choice of property, is also reshaping the decisions of owners and tenants.
Braña considered that the choice of reference index depends on the current economic situation. “Today, the ICL is slightly higher than the CPI. In other periods, it was the other way around, and tenants were the ones who asked to use it instead of the CPI. These are cycles that occur within our economy and vary even within the same contractual term. An annual adjustment is not the same as a quarterly or four-monthly one,” he explained.
Regarding recommendations for negotiating, Braña maintained that tenants now have more leeway than in the recent past. In the City of Buenos Aires, both indexes are used, although the CPI is most frequently used. Nationally, the Central Bank's ICL is the most common.
"What I see is that tenants, after years of complications, are now going through several weeks or even months of different units before finalizing. What used to rent in 24 hours or in four or five days from 2021 to 2023 can now take months. This happens in every neighborhood in the city," he concluded.
www.buysellba.com
Source:
Alquileres de dos ambientes en CABA ya cuestan $600.000 al mes: qué tipo de ajuste conviene, por IPC o ICL
Sin la Ley de Alquileres, los precios no aumentan al ritmo de un año atrás. Cuáles son las recomendaciones al firmar un nuevo contrato.
www.ambito.com
September 23, 2025
By Jose Luis Cieri
Without the Rental Law, prices aren't increasing at the same rate as a year ago. What are the recommendations when signing a new contract?
A couple signs the rental contract next to the auctioneer at a real estate agency in Buenos Aires. Pexels
The rental market in the City of Buenos Aires is experiencing a period of relative stability in published prices, while contracts are being adjusted according to reference indices. According to the September report by the Scalabrini Ortiz Center for Economic and Social Studies (CESO) , median prices were $500,000 for a studio apartment, $600,000 for a one-bedroom apartment, and $800,000 for a two-bedroom apartment.
In all cases, monthly variation was zero, while year-over-year increases ranged between 33% and 39%. CESO confirmed that the starting point values for new contracts did not increase; the price stability coincided with an increase in supply.
The rental apartment stock grew 31% compared to September 2024 ( even the number of units denominated in dollars increased ), expanding options for tenants. Despite this change, prices remain high relative to income. The minimum living wage, which was $322,200 in September, covers only 64% of the average rent.Expenses also impact tenants' pockets: they represent an average of 23% of the rent. In practice, a $600,000 lease can result in a monthly expense exceeding $730,000 when the expenses are added.
Another CESO finding is that 26% of publications are in dollars, reflecting the persistence of dollarized contracts in a context of exchange rate instability.
Evolution of indices
The evolution of the rental indexes became the focus of the negotiations. The Rental Contract Index (CCI), compiled by the Central Bank, is at its lowest level in almost three years. This reduction provides relief for tenants who signed their contracts under this type of contract, although the discussion today focuses on whether the CCI or the Consumer Price Index (CPI) should be applied.
Alejandro Moretti , from the Buenos Aires Real Estate Association, explained that the drop in the ICL is due to the lag with which inflation is calculated. "The inflationary drop observed since June 2024 has a delayed impact, so the downward trend has been consolidating since late 2024 and early 2025. This is a relief for tenants who signed their contracts under this update method," he noted.
For Moretti, when signing a new contract, it's more convenient to use the CPI. "It's the index most accepted by parties when entering into a rental contract for housing. There are fewer and fewer properties available for less than $600,000, and most of them are in the southern part of the city," he noted.
The supply of apartments for rent in the city grew 31% in one year and prices show monthly stability.
Valencia Neira Real Estate
Mariano Lo Valvo , a real estate specialist, agreed that falling inflation favors the CPI as a benchmark. "The decrease in the CPI is positive compared to the LCI and is the most advisable method for new contracts, which mostly have quarterly adjustments and are already below inflation," he indicated.
According to Lo Valvo, the oversupply of units explains the stability of prices and, in some cases, even small reductions in new properties on the market. “This dynamic has led some tenants to opt out of their contracts early after finding better prices in the current market. The available options allow for more favorable conditions in a context that seems to be offering greater flexibility,” he added.
The trend toward CPI-adjusted contracts is consolidating in a scenario where supply far exceeds demand. The impact of expenses, which in many cases determine the choice of property, is also reshaping the decisions of owners and tenants.
The ICL is declining month by month
Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, analyzed the implications of the drop in the ICL. “This updated index is increasingly closer to the reality of market values. It seems incredible, but just over a year ago, the ICL was 265%, and today we're talking about 50% for September. Since the rental market has doubled and expenses have skyrocketed in recent years, today we find offers that, in many cases, are no more than 30% below what was being asked for the same unit two years ago,” he explained.Braña considered that the choice of reference index depends on the current economic situation. “Today, the ICL is slightly higher than the CPI. In other periods, it was the other way around, and tenants were the ones who asked to use it instead of the CPI. These are cycles that occur within our economy and vary even within the same contractual term. An annual adjustment is not the same as a quarterly or four-monthly one,” he explained.
By neighborhoods
Regarding the three main areas, the specialist emphasized that it is still possible to find prices below $650,000 in neighborhoods such as Caballito, Recoleta, Congreso, Belgrano, Balvanera, Barracas, Monte Castro, Floresta, San Nicolás, Villa Lugano, Parque Chacabuco, Villa del Parque, Palermo, Almagro, and San Telmo, among others. "In all neighborhoods, you can find lower prices by sacrificing square footage or layout," he noted.Regarding recommendations for negotiating, Braña maintained that tenants now have more leeway than in the recent past. In the City of Buenos Aires, both indexes are used, although the CPI is most frequently used. Nationally, the Central Bank's ICL is the most common.
"What I see is that tenants, after years of complications, are now going through several weeks or even months of different units before finalizing. What used to rent in 24 hours or in four or five days from 2021 to 2023 can now take months. This happens in every neighborhood in the city," he concluded.
www.buysellba.com
