This implies a 170% increase in housing since the DNU came into force and marks a change in the market. At the end of 2023, the figures showed only 6,600 apartments. The repeal of the law in question caused the owners of the properties to decide to use the properties again for rent, since Contracts can be freely negotiated between the parties.
In the Autonomous City of Buenos Aires, prices rose by 213% in the last year, while in Greater Buenos Aires there was an increase in 189% in the north, 235% in the west and 241% In the south.
“The publication values of rental prices in February for apartments grew well below inflation (13.2%) and for houses they decreased. The data shows that rental values barely changed in CABA between March and February 2024, remaining stable. On the other hand, in GBA North they experienced a slight decrease of 0.4%. In contrast, in GBA West there was an increase of 2.8%, while in GBA South there was a more notable increase of 4%,” highlights the work carried out by the University of San Andrés together with Mercado Libre.
In addition, rental prices denominated in dollars evolved according to the different market conditions, reaching today 46% compared to 54% in local currency since the DNU came into force, which allowed the publication of values in foreign currency and the conclusion of housing agreements in addition to temporary ones.
An offer that increases in the face of a salary that decreases
little horse tops the list of the most popular neighborhoods to rent, followed by Palermo and Belgrano. However, although prices showed signs of slowing down, they still represent a challenge for the average Argentine salary and tenants must face high costs to maintain home maintenance.
For example, in CABA, the average rent for a two-room apartment is $400,000 per month, which It is equivalent to two minimum salaries.
In neighborhoods like Palermo either Belgranothese values amount to more than $550,000 monthly, while in peripheral areas such as Saavedra either Flowers descend to $350,000 per month.
Sales of apartments in CABA
The prices of the apartments for sale in CABA show signs of recovery after drops of more than 21% compared to 2019 data.
After five years of continuous decline (which caused values to decrease by 40% and remain at bargain prices for those who have savings), a slight appreciation of prices was observed in several Buenos Aires neighborhoods, with increases ranging between 3% and 7% year-on-yearwhile in some suburban towns this phenomenon is less pronounced.
The average value in CABA is US$2,300 per square meter, which represents an increase of 3.5% compared to March of last year and a slight increase of 0.4% compared to February.
The current context for buying and selling in the AMBA shows a slowdown in price decline, with signs of recovery, especially in CABA. The stability of the dollar in recent days played a crucial role in this behavior, although market predictability remains a challenge.
Iván Ginevra, president of the Argentine Real Estate Chamber that also collaborates with Mercado Libre and UDESA, said that “in relation to price resistance, apartments located in specific neighborhoods of CABA experienced an improvement in their quotes. Examples of these are Chacarita, Palermo, Villa Crespo, Villa Ortúzar and Schoolboyswhich rose between a 3% and 6% year-on-year“.
In these areas of the north of CABA, the sale prices of the apartments vary between US$2,100 and US$3,038Palermo being the most representative.
“The The widest offer of apartments for sale in CABA is observed in 2-room units, representing 31%, followed by 3-bedrooms with 29%, and studio apartments with 20%. On the other hand, the highest demand is concentrated for 3-room units, with 33%, closely followed by 2-room units, with 32%, and studio apartments, with 20%,” the study concluded.
What the DNU says about rents
The rental law was sanctioned in July 2020 and from that moment generated a sharp reduction in supply, which could not be reversed after the last modifications that were made in October of last year.
Rentals are a main point in the economy of the majority of Argentine families and one of those that the Government of Javier Milei decided to modify as soon as it came under State control. In this way, this year tenants must adapt to new requirements to sign a rental contract.
The Rental Law was repealed by the Decree of Necessity and Urgency (DNU) promoted by the Government. As a consequence, there are new conditions and requirements that determine the relationship between tenants and owners.
One of the things that the previous law determined was that contracts had to be made by two or three years. Now they can be celebrated from three months.
Besides, owners and real estate they drive the surety insurancea cost that those who rented did not have before because they could carry a pay slip or a guarantor. Now, in many cases, they are forced to have a surety insurance.
There are cases in which the owners ask index for him price of the most expensive gasoline or to the meat. And the new regulatory framework allows it. On the other hand, until recently there were property notices that clarified that, Since the rental amount was requested in dollars, it was not indexed. That no longer happens, the currency no longer matters, now several ask increases.
On the other hand, in the Buenos aires city this forbidden that the real estate charge a commission month. However, many do it and even publish it in online ads. Furthermore, many real estate agencies charge stamping even though in the Buenos Aires Province HE prohibited them from doing so.
Another issue to take into account is that before commissionaccording to Rental LawIt was from one month. Now there is no limit to order.
Source: Ambito
