BuySellBA
Administrator
Rentals with uncontrollable prices in the Buenos Aires Metropolitan Area: in just one month, there were increases of up to 26 percent - Infobae
Source:
www.infobae.com
September 02, 2023
By Jose Luis Cieri
The values for rent do not stop climbing month by month (Photo: Pixabay)
www.buysellba.com
Source:
Alquileres con precios sin control en el AMBA: sólo en un mes, hubo aumentos de hasta 26 por ciento
Informe privado detectó que las fuertes subas son por el efecto de la devaluación post PASO. En cuanto a venta se mantiene la tendencia de valores en baja entre CABA y Gran Buenos Aires, pero descienden levemente en comparación con un año atrás
www.infobae.com
September 02, 2023
A private report detailed the strong rises after the devaluation. Regarding sales, the downward trend of values between CABA and Greater Buenos Aires continues, but they decrease slightly compared to a year ago
By Jose Luis Cieri
The values for rent do not stop climbing month by month (Photo: Pixabay)
The post-STEP devaluation and high inflation hit hard, having a significant impact on housing rent increases over the past month. According to a private report, rental prices in the Buenos Aires Metropolitan Area (AMBA) increased by 15.6% in the case of houses and by 26.4% in that of apartments.
Access to housing for those who do not own property has become more complex than ever and the notable increase in the prices of new rentals, both for houses and apartments, could be explained, in part, by a decrease in the supply of properties in traditional location. In CABA there was a year-on-year drop of 23.8% in supply, according to a recent private report.
Today in CABA, a two-room apartment with 50 square meters has an average monthly rent of $198,000; while a three-room unit with 70 m2 is rented for $260,000 per month. In the northern area of Greater Buenos Aires (GBA), meanwhile, prices move in a similar way, with slight reductions in the western and southern areas of the suburbs. This raises the concern of tenants: month after month, those who renew or adjust their rents must allocate more money to meet housing payments.
In addition, it is important to remember that a large percentage of rental offers for houses and apartments are expressed in dollars. “This is relevant because in August we experienced a notable rise in the value of the blue dollar, which means that the equivalent in pesos of these publications increased significantly from one month to the next. To be more precise, the devaluation of the official dollar in August reached 22%, an increase that is similar to the increase observed in the prices of house and apartment rentals in pesos," explained Paula Margaretic, a researcher at the University of San Andrew.
According to the analysis (see graph), the price per m2 of the monthly rental of apartments in CABA is $6,478; in the northern GBA it is $5,602, and the lowest is recorded in the western GBA with $2,375 per m2.
In houses, it is published below: in CABA it is $3,585 per m2 per month, and the cheapest is also registered in the western zone of the GBA with $1,767 per m2.
As for what could happen with the rents and the law that has been in force since 2020, which is currently under review in the Senate (after the half sanction of Deputies to reform two controversial articles, such as returning to two years of duration instead of three and allowing free adjustments between the parties under different indices), Margaretic commented that "in case corrections are made, we estimate that at least the supply of rental housing would begin to grow rapidly."
On sale
The report – carried out by Udesa and Mercado Libre – also addressed the values of home sales in the AMBA. In CABA, average prices decreased by 1.1% in August compared to July 2023, while in the case of houses there was a slight increase in CABA and a moderate decrease in the north, south and west areas of the GBA.
The interannual sales values for houses rose slightly by 0.9% in the AMBA, while apartments fell by 3.8% with moderate falls in all areas.
Apartment prices MoM decreased 0.3% overall; a moderate rise was registered in CABA, of 0.6% and 1.2% in northern GBA. In addition, there was a slight decrease in the rest of the areas: 0.4% in West GBA and 1% in South GBA (see graph below).
Abigail Riquelme , also from Udesa, told Infobae that sales prices have experienced a downward trend in recent years. “This is due to a combination of factors, including macroeconomic uncertainty, currency instability, capital restrictions and the rental law, which, with leases that are too long, reduce the incentives for landlords to put their properties for rent, which in turn increases the supply of properties for sale”, he explained.
Most wanted for rent and sale
The work also revealed which are the most demanded neighborhoods and localities of the AMBA, both to rent and to buy properties.
In the infographic below you can see the most visited routes and cities. The most sought after neighborhoods tend to coincide for both sale and rent. "Possible reasons why people prefer these neighborhoods include a greater offer of services, better infrastructure, greater security, better access, connections and facilities, among others," added Riquelme.
Sales by areas visited
What is surprising is that, both for buying and renting (see the graph below), the neighborhood most requested by demand is Caballito in CABA.
In addition, a coincidence is also observed in the south and west GBA, where La Plata and Ramos Mejía stand out as the most privileged places for those looking for a home.
what can happen
What happens to future rental and sale prices will depend on multiple factors. First, it will require a dissipation, to a certain extent, of the political and economic uncertainty, in a context marked by the presidential elections, which puts pressure on the exchange rate.
“Secondly, it will depend on what happens with the Rental Law and if it is actually corrected. Third, the market will be influenced by economic policy measures taken in the near future. Most likely, the volatility will continue and rental prices will continue to rise,” concluded Margaretic.
www.buysellba.com
