The acceleration of inflation, changes in legislation and low profitability are destroying the rental supply in CABA.
He rental market faces a strong crisis, especially due to the drop in supply at the national level. Now, in the City of Buenos Aires the number of apartments published on property sites reached 550 units, according to the latest report from Real Estate Report.
This figure represents a decrease of 14.3% in the supply of apartments compared to the previous month and is barely a quarter of what existed a year ago, when the supply of apartments for rent reached 2,068 units. This way, The drop in the supply of apartments with similar characteristics reached a decrease of 74.27% in October compared to the same month of 2022.
The supply dropas mentioned by specialized sources in the market, is due on the one hand to the duration of the contracts and the annual update based on the Lease Contract Index (ICL). Although with the modification of the law, more uncertainty was also added because the market must “analyze” the new standard.
In addition to the resounding drops in supply, there is also the acceleration of the initial cost of entering an apartment, which reaches, in the general average, 233% year-on-year: during October, the average value of the existing supply for a studio apartment was at $187,350 per month, while the average rental value of a two-room apartment reached $248,000.
“It is evident in light of the data that the sanction of the modification to the rental law operated last October 10, was in principle inefficient to achieve, at least, a minimal improvement in the critical situation of the residential rental market,” Real Estate Report noted.
Source: Ambito
