The cost of the rentals It rose again in May of this year, according to a recent analysis by the Center for the Study of the New Economy of the University of Belgrano, based on historical data from the Rent Adjustment Index prepared daily by the Central Bank of the Argentine Republic. (BCRA).
Thus, in May, the index reached a new record by marking an increase of 3.86% and surpassing the mark of the month of April (3.64%), accumulating an increase of 95.9% in the last 12 months.
“All this implies that, for example, a rent that began on May 1 of last year for an amount of $100,000, as of May becomes $195,900. In other words, it almost doubles in a month,” says Víctor Beker, Director of the University’s Center for Economic Studies.
Annual cumulative rental index (2020-2023)
Although it is true that, since July 2020, the date on which the new rental lawthe rental index showed some type of increase every month, the curve accelerated more noticeably from September 2022 to date, in 2023 in which the inflationary expectation will be around 110%, according to the Survey of Market Expectations (REM), also prepared by the BCRA.
According to data from Zonaprop, the average rental price of a studio apartment was 105,613 pesos per month. A two-room apartment reached 128,584 pesos per month and one with three rooms has a value of 169,000 pesos per month.
Rentals: the most expensive and the cheapest neighborhoods
The neighborhoods of Palermo and Belgrano are those with the most expensive offer in the city with a value of 165,061 and 152,104 pesos per month, respectively. Puerto Madero was omitted in the rental analysis since its values are mostly valued in another currency.
In the middle area are Villa Crespo (132,524 pesos per month), Villa Gral. Miter (122,504 pesos per month) and Paternal (115,029 pesos per month).
The lowest prices are found in Mataderos (98,003 pesos per month), Liniers (99,268 pesos per month) and Flores (104,432 pesos per month).
Added to this is the fact that, according to a report by Free market developed together with the Universidad De San Andrés (UdeSA), during the first quarter of the year, rental offers in AMBA decreased: only 6% of the platform’s publications are rental properties and 94% of the remaining publications are properties for sale. It has more than 750,000 active property publications. The report also shows that during January, February and March 2023, the rental offer in CABA decreased, although it increased in GBA Norte.
Rentals: contracts in dollars grow
In addition, the supply of rentals in dollars in AMBA grew significantly, exceeding 50% of the total (versus 32% during the same period the previous year). Of the rental offer in dollars, 77% corresponds to houses and 34.5% to apartments.
In CABA, sales prices showed a slight fall (0.4%) in April and accumulated 1.6% in the first months of the year. In 2022, the drop was 2.3% in the same period, which shows a slowdown in the price decline.