The rentals were agreed in the last month by common agreement between owners and tenants after the repeal of the Rental Law, and in this period a greater tendency was observed to carry out short term contracts with increases tied to inflation, while publication prices continue to rise.
The entry into force of DNU 70/2023 on December 29 left the Rental Law that regulated rental contracts and that is maintained only for contracts that were signed previously.
On December 29, Grouped Tenants presented a request for annulment in the jurisdiction Administrative Litigationwhich Judge Enrique Lavié Pico then sent to the Civil Court, still without a resolution.
Since July 2020, the market has operated under the conditions of the Rental Law and since then there has been a significant drop in properties on offer and increases in prices, which according to real estate agencies and owners were the effect of the regulation.
National Tenant Survey: what results did it show?
One month after the repeal, Grouped Tenants rIt raised how the conditions of the contracts and the demands when accessing rental housing changed.
According to National Tenant Survey carried out in January, throughout the country, the rental contracts agreed during the last month are mostly of short duration, with terms of between one and two years, mostly with adjustments quarterly or at best every six months.
The vast majority (92.9%) of the tenants surveyed considered that 2024 will be worse than last year.
Regarding deadlines, 87.3% of the contracts that were signed after the entry into force of the DNU have an update by periods less than 6 months, of which 25% is every 3 months.
Before the DNU, 69% of contracts contemplated annual updating, 20% every 6 months and only 4% updated every 3 months.
This last scheme was reversed in the last month: 45.6% of new contracts establish semiannual updating, 24% every 3 months and only 7.6% annually.
Added to this is that 51% of the contracts signed in the last month are less than a year in duration.
Tenants: what do they expect for 2024
In relation to the feelings generated by the housing issue, anguish predominates (78%), anxiety (75%) and the feeling of hopelessness (68%) among the tenants who responded to the questionnaire.
Grouped Tenants indicated that “rents, for the most part, are being prepared with quarterly updates due to inflation. If someone signed in January, in April they will have an approximate increase of 60%.”
“To put it more clearly, if someone pays $300,000 in January, in April they will pay $480,000,” which will generate a ““social crisis”he added.
Rentals: two surveys show an increase in supply
Meanwhile, according to surveys carried out by the real estate classifieds platforms Mercado Libre and Zonaprop, in the last month there was an increase in the number of properties offered for rent.
Zonaprop noted that the supply of apartments for rent in the city of Buenos Aires increased significantly during January, registering a increase of 62% compared to last December.
“Since the end of the pandemic, the rental supply in the City has systematically decreased and reached a historic low in February 2023. In January 2024, the supply of rental apartments grew by 62% compared to December 2023,” he noted. Zonaprop in a statement.
Mercado Libre noted that “during January 2024, The supply of real estate increased considerably in the GBA North areas, GBA South and GBA West. The increases were 55.4%, 61.6% and 50.6%, respectively, compared to the previous month.”
Despite the greater supply, Zonaprop indicated that rental prices They increased 21% in January compared to last December.
Rentals: how much does it cost to rent in CABA
Currently, the average monthly price for rent a studio apartment of 40 square meters (m2) is $327,295 and in the case of two rooms and 50 m2 it is located in $405,218.
While one with three rooms and 70 m2 reaches $558,710 per month.
In relation to the most expensive neighborhoods to rent, Palermo tops the list with an average monthly value of $508,160; followed by Belgrano with $497,300 monthly; and Chacarita with $492,018.
For his part, the most accessible neighborhood cwith a monthly price of $301,392 is Liniers, followed by Mataderos with $310,634; and Monte Castro with $314,811 per month.
Source: Ambito
