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Rentals in CABA: The new contracts sealed in March registered a strong deceleration in prices - Infobae
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Alquileres en CABA: los nuevos contratos sellados en marzo registraron una fuerte desaceleración de los precios
Un informe confirmó en marzo el menor aumento mensual desde 2019 para el punto de partida de los acuerdos; la oferta intermensual post DNU crece un 15,3 por ciento
www.infobae.com
March27, 2024
A report confirmed in March the lowest monthly increase since 2019 for the starting point of the agreements; post-DNU month-on-month supply grows 15.3 percent
By José Luis Cieri
Handing over the keys marks the beginning of a contract to rent an apartment ready to move into. Post DNU supply grows to record levels (Illustrative Image Infobae)
The rental market in the city of Buenos Aires observed a slowdown in housing price increases, with the most recent increase at 1.3% during March, the lowest increase for a month since January 2019. This change in trend (post DNU that repealed the Rental Law) is accompanied by a notable growth in the rental supply, with an increase of 15.3% in the same month.
This confirms a change in the dynamics of housing rentals since they were formulated by the Civil and Commercial Code. Once the law was repealed, the owners once again allocated their properties to traditional locations.
The rental offer allowed tenants to have more options to choose from and currently there are portals with more than 12,500 properties for sale (although 55% are maintained with dollarized values).
“This gradual but continuous process was driven by legal certainty that mainly benefited the owners, who are the main providers of rental properties. The decree respects and establishes minimum restrictions on the freedom of contract, measures that are considered necessary and reasonable for long-term rental contracts, similar to practices in other countries such as Uruguay, where locations enjoy legal stability," he explained to Infobae . Rodolfo Martín Barbieri , real estate law lawyer and advisor to the Argentine Real Estate Chamber.
What are the values
Zonaprop's analysis revealed that the prices of rental contracts rose by 261.7% year-on-year in March, a figure that, although significant, grows at a lower rate than inflation, estimated at 299% year-on-year.
Source: Zonaprop
This points to greater accessibility compared to the price levels that had been recorded, in a context of high values. A one-bedroom is rented for $365,546 per month while a two-bedroom is rented for $422,502 and a three-bedroom for $567,747 per month.
Experts recommend agreeing on updates to new contracts that fit the tenants' budget, thus guaranteeing timely compliance with the agreement and avoiding possible problems throughout its term.
Source: Zonaprop
Most expensive and cheapest neighborhoods
Palermo continues to be among the most expensive neighborhoods in CABA to rent two-room apartments ( Zonaprop excluded Puerto Madero a year ago because all quotes there are kept in dollars), with a value of $497,645 per month. They are followed by Núñez ($476,741) and Belgrano ($471,623 per month).
Source: Zonaprop
In turn, La Boca is presented as the most accessible neighborhood with an average value of $321,253 per month. Parque Avellaneda and Liniers follow with $327,737 per month and $336,109, respectively.
Slight increase in purchase and sale values
Real estate market prices also reflect movements, with a modest increase of 0.4% in March in the cost per square meter, standing at USD 2,202 for the purchase and sale of apartments.From Zonaprop they reported that "in the first three months of the year, they accumulate an increase of 1.1% while in the year-on-year comparison it rises 1.3%, the largest increase since May 2019."
In March, 71% of the neighborhoods registered a price increase, with well apartments being the ones with the greatest increase.
A three-room apartment in CABA averages USD 160,480 for purchase and sale
“The real estate sector has proven to be resilient in challenging contexts, adapting through different mechanisms, such as the dollarization of transactions and the search for purchasing real estate at really low prices, as an investment refuge with prospects that, in the future, will always oscillating, real estate values return to their historical prices,” said Lisandro Cuello, real estate expert.
Given the economic volatility, real estate in Argentina continues to be seen as a safe investment to protect capital from devaluation.
Cuello expanded: “This could keep demand for properties at levels similar to the last months of 2023, especially in segments that are considered value havens, such as properties in premium locations or developments that offer unique features.”
A 40 m2 studio apartment has a price of USD 97,248 for sale, while a two-room apartment of 50 m2 is worth USD 116,539 and a three-room apartment of 70 m2 is worth USD 160,480.
The volume of apartments for sale discounted stopped falling in the last six months and remained stable at 18% in the first quarter of 2024.
The drop in the volume of delayed ads is one of the factors that explain the increase in the price registered since July 2023.
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