earlyretirement
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The long term rental market in Buenos Aires is getting flooded with Apartment rentals
An interesting situation and unusual phenomenon in the local real estate market: a significant number of rental apartments have reduced their price after failing to find tenants within 60 days.
Out of 15,000 apartments for rent, approximately 1,800 (about 12% of the supply) have lowered their price, and this trend is visible on real estate websites, where properties display signs announcing price reductions.
1. Recent Real Estate Context
In recent years, the rental market in CABA has been marked by a shortage of supply and rising prices, driven by inflation, economic uncertainty, and legislative changes (such as the repeal and subsequent reform of the Rental Law).
However, this new scenario suggests a shift in dynamics:
Increased supply: The rise in available properties is due to units that were previously on the short-term rental market (Airbnb, tourism) returning to the traditional market. With tourism falling, locals are throwing in the towel and moving to long term rentals creating a glut on the market.
This is GREAT news for existing Airbnb owners as more and more locals are exiting out of the market. They have sold off furniture and not likely to get back into the short-term rental market. So once tourism booms again there will be far less competition.
Lower demand: Economic factors, loss of purchasing power, or tenants moving to other areas may be reducing effective demand. People are struggling to keep up and pay bills. BA is expensive now!
2. Landlords’ Strategies
The reduction in prices after 60 days without finding a tenant indicates that landlords are adjusting their expectations to the new market reality. They prefer to lower the price rather than leave the property vacant, which entails additional costs and risks.
3. Market Impact
Greater competition: Renters have more options and bargaining power.
Possible price stabilization: If the trend continues, rental prices could stabilize or even decrease in real terms.
Transparency: Real estate websites make comparison easier and force landlords to be more competitive.
4. Factors to Watch
Economic developments: Inflation, interest rates, and employment will continue to impact tenants’ ability to pay.
Public policies: Regulatory changes can modify supply and demand.
Short-term rental market: If tourism recovers, there could be a new shift of properties to that segment.
The price drop in more than 10% of rental apartments after two months without tenants is a clear sign of adjustment in the CABA market. This unprecedented situation could benefit those looking to rent, at least in the short term, and marks a turning point after years of continuous increases. It will be key to observe whether this trend consolidates or is just a temporary phenomenon linked to specific factors.
BuySellBA - Keeping track of the latest real estate happenings in Buenos Aires so you don't have to
An interesting situation and unusual phenomenon in the local real estate market: a significant number of rental apartments have reduced their price after failing to find tenants within 60 days.
Out of 15,000 apartments for rent, approximately 1,800 (about 12% of the supply) have lowered their price, and this trend is visible on real estate websites, where properties display signs announcing price reductions.
1. Recent Real Estate Context
In recent years, the rental market in CABA has been marked by a shortage of supply and rising prices, driven by inflation, economic uncertainty, and legislative changes (such as the repeal and subsequent reform of the Rental Law).
However, this new scenario suggests a shift in dynamics:
Increased supply: The rise in available properties is due to units that were previously on the short-term rental market (Airbnb, tourism) returning to the traditional market. With tourism falling, locals are throwing in the towel and moving to long term rentals creating a glut on the market.
This is GREAT news for existing Airbnb owners as more and more locals are exiting out of the market. They have sold off furniture and not likely to get back into the short-term rental market. So once tourism booms again there will be far less competition.
Lower demand: Economic factors, loss of purchasing power, or tenants moving to other areas may be reducing effective demand. People are struggling to keep up and pay bills. BA is expensive now!
2. Landlords’ Strategies
The reduction in prices after 60 days without finding a tenant indicates that landlords are adjusting their expectations to the new market reality. They prefer to lower the price rather than leave the property vacant, which entails additional costs and risks.
3. Market Impact
Greater competition: Renters have more options and bargaining power.
Possible price stabilization: If the trend continues, rental prices could stabilize or even decrease in real terms.
Transparency: Real estate websites make comparison easier and force landlords to be more competitive.
4. Factors to Watch
Economic developments: Inflation, interest rates, and employment will continue to impact tenants’ ability to pay.
Public policies: Regulatory changes can modify supply and demand.
Short-term rental market: If tourism recovers, there could be a new shift of properties to that segment.
The price drop in more than 10% of rental apartments after two months without tenants is a clear sign of adjustment in the CABA market. This unprecedented situation could benefit those looking to rent, at least in the short term, and marks a turning point after years of continuous increases. It will be key to observe whether this trend consolidates or is just a temporary phenomenon linked to specific factors.
BuySellBA - Keeping track of the latest real estate happenings in Buenos Aires so you don't have to
