BuySellBA
Administrator
Rental boom and record in the AMBA: There are 19,000 apartments on offer, 170% more since the DNU came into force - Infobae
Source:
Boom de alquileres y récord en el AMBA: hay 19.000 departamentos en oferta, un 170% más desde que rige el DNU
Los valores se estabilizan en pesos, pero aún hay una gran porción de la oferta en dólares. La evolución del mercado de compra-venta
www.infobae.com
April 13, 2024
Values stabilize in pesos, but there is still a large portion of the supply in dollars. The evolution of the buying and selling market
By José Luis Cieri
The supply to rent has grown week after week since the DNU came into force and purchase and sale values stopped falling in the AMBA (Illustrative Image Infobae)
Rental prices in the Buenos Aires Metropolitan Area (AMBA) are beginning to show signs of accommodation, as revealed by a private report. However, the most notable thing is the increase in the supply of apartments for rent, which experienced a growth of 170% in just three months since the DNU came into force that repealed the 2020 Rental Law.
These data mark a significant change in the market, where the supply of housing in some neighborhoods of the city of Buenos Aires or towns in Greater Buenos Aires (GBA) was practically nil.
Thus, the supply of apartments for rent in the AMBA reached a total of 19,000 available units. This increase represents a considerable change, especially when compared to the figures from the end of 2023, when only 6,600 apartments were counted.
The implementation of the Rental Law in 2020, which established three-year contracts with annual updates, discouraged thousands of landlords from entering the market.
Evolution of the offer
However, with the repeal of this regulation, rental contracts, being freely negotiated between the parties, generated new interest in the sector and property owners now decided to once again allocate the properties for lease.
Rent stabilization
Despite the increases recorded in the last year, rental prices remained stable during the month of March.The values are slowing down at the starting point of the contracts due to the publications they observe, highlighted the work of the University of San Andrés (Udesa), together with Mercado Libre.
“The publication values of rental prices in February for apartments grew well below inflation (13.2%) and for houses they decreased. The data shows that rental values barely changed in CABA between March and February 2024 , remaining stable. On the other hand, in GBA North they experienced a slight decrease of 0.4%. In contrast, in GBA West there was an increase of 2.8%, while in GBA South there was a more notable increase of 4%,” explained Pablo Brener , one of the authors of the work.
Rental prices nominated in dollars evolved according to the different market conditions, reaching today 46% compared to 54% in local currency since the DNU came into force, which allowed the publication of values in foreign currency and the conclusion of housing agreements in addition to temporary ones.
Rental Offer
Most searched areas
Caballito heads the list of the most in-demand neighborhoods to rent, followed by Palermo and Belgrano. However, although prices showed signs of slowing down, they still represent a challenge for the average Argentine salary and tenants must face high costs to maintain home maintenance.
Price of the apartments
For example, in CABA, the average rent for a two-bedroom apartment is $400,000 per month, which is equivalent to two minimum wages.
In neighborhoods like Palermo or Belgrano, these values amount to more than $550,000 per month, while in peripheral areas like Saavedra or Flores they drop to $350,000 per month.
Rising values
The prices of apartments for sale in CABA show signs of recovery after falls of more than 21% compared to 2019 data.
March prices
After five years of continuous decline (which caused values to decrease by 40% and remain at bargain prices for those who have savings), a slight appreciation of prices was observed in several Buenos Aires neighborhoods, with increases ranging between 3 % and 7% year-on-year, while in some suburban towns this phenomenon is less pronounced.
The average value in the city is USD 2,300 per square meter, which represents an increase of 3.5% compared to March of last year and a slight increase of 0.4% compared to February.
The current context for buying and selling in the AMBA shows a slowdown in the fall in prices, with signs of recovery, especially in CABA. The stability of the dollar in recent days played a crucial role in this behavior, although market predictability remains a challenge.
Those who increased their value
The demand for properties continues to reflect various variables, such as size, price and location, in addition to the impact of socioeconomic and cultural factors that influence preferences for certain neighborhoods in both CABA and the GBA.
Apartment prices in AMBA, by area
Iván Ginevra , president of the Argentine Real Estate Chamber that also collaborates with Mercado Libre and UDESA, said that “in relation to price resistance, apartments located in specific neighborhoods of CABA experienced an improvement in their quotes. Examples of these are Chacarita, Palermo, Villa Crespo, Villa Ortúzar and Colegiales, which rose between 3% and 6% year-on-year.”
In these areas of northern CABA, the sales prices of the apartments vary between USD 2,100 and USD 3,038, with Palermo being the most representative.
“The widest offer of apartments for sale in CABA is observed in 2-room units, representing 31%, followed by 3-room units with 29%, and studio apartments with 20%. On the other hand, the highest demand is concentrated for 3-room units, with 33%, closely followed by 2-room units, with 32%, and studio apartments, with 20%,” Brener concluded.
www.buysellba.com
