The rents in the Buenos aires city suffered a new increase in the first month of 2024. After the repeal of the Rental Law carried out by the government, the increase is up to 16.7% depending on the location and number of rooms.
This increase was known from the data of the Scalabrini Ortiz Center for Economic and Social Studies (CESO)where it is detailed that, compared to December, the studio apartments rose by 12%, the aforementioned 16.7% for those with two rooms, and 6.4% for those with three rooms.
The average price of a studio apartment is $280,000 and rose 305.8% in the last twelve months. This increase is greater than that registered in December, which was 11.1%. In the cases of those with two and three rooms, they were 7.1% and 23.7% respectively.
Rentals after repeal of the rental law: what are the contracts like in terms of term, currency and updating
After the repeal of the “Rental Law” Through the Decree of Necessity and Urgency (DNU) which the president signed Javier Mileithe uncertainty of the tenants about how to agree contracts after the deregulation and the possibility that each agreement is “unique and unrepeatable”.
Inside of the DNU of the government of Freedom Advances (LLA)in addition to repealing the rule that regulated rental contracts, the Civil and Commercial Code -was the regulatory framework for contracts prior to the law- and provides a “freedom of contract”which implies that the owner and the tenant can be “free” from “enter into a contract and determine its content”.
Different market players agreed that the new rental contracts “to a large degree” “they are agreeing”for two years, in pesos and with indexations through the Consumer Price Index (CPI)”, which measures the National Institute of Statistics and Censuses (INDEC).
Although Armando Pepe, owner of the homonymous real estate company, highlighted in dialogue with Ambit that “There are still many owners who ask that the rent be agreed in dollars.” Anyway, he reflected: “People earn in pesosso they will have to change the currency to peso or wait.
The now repealed rental law established that contracts have a minimum of 3 yearswith semiannual updates through a coefficient made up of the smallest variation that arose from the comparison of the average of 0.9 of the Salary Variation Coefficient (CVS)published by INDEC and of Reference Stabilization Coefficient (CER)published by Central Bank of the Argentine Republic.
It takes almost two minimum wages to pay rent in the City of Buenos Aires
The average of the studio apartments offered in the city is $280,000, so the Minimum Living and Mobile Wage, which in January is $156,000, is enough to cover 55.71% of a rental, less coverage than 62. 40% of the previous month.
On the other hand, the median of the offers of Two-room apartments are $350,000 and three-room apartments are $500,000.; with a coverage of the minimum wage of 44.57% and 31.20%, lower than those of November, when the coverage was 52% and 33.19% respectively.
“The values expressed above do not include expenses, which reach on average 9.7% of the cost of the offer price of a rental,” the entity added.
The CESO highlighted that “in each category, prices vary depending on other characteristics (such as age, whether it has a garage, etc.) and its environment (infrastructure, availability of transportation, proximity to shopping centers, among others).”
The CESO highlighted that “in the city of Buenos Aires, high prices prevent a large part of the population from renting even an average studio apartment, pushing them towards areas with lower quality infrastructure and services.”
Source: Ambito
