The slowdown in rental prices in Greater Buenos Aires continues. According to a recent Zonaprop report, in March the increase was 2.5%, while in the first quarter of the year, GBA Norte accumulated an increase of 28.7% in the value of the rentals below that registered in the last quarter of 2023 (49.1%). In the last 12 months it accumulates an increase of 40.9 percentage points below the inflation.
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, a two-room apartment in GBA north has a value of 372,792 pesos per month, while a three-room apartment is rented for 564,291 pesos per month.
Nordelta remains the neighborhood with the most expensive offer on the market, with a value of 490,685 pesos per month. They are followed by Vicente López, with a value of 482,956 pesos per month and Rincón de Milberg with a value of 467,702 pesos per month. On the other hand, José León Suárez, San Miguel and Pilar have the lowest prices, 232,419 pesos per month, 260,661 pesos per month and 289,331 pesos per month, respectively.
As happened with the northern zone, GBA west-south also continues with the deceleration in the price increases of rent. The monthly increase in March was 4% and accumulates an increase of 28.4% in the first quarter of 2024, notably lower than that accumulated in the last quarter of the previous year (47.8%). In the last 12 months it has advanced 45.1 percentage points below the inflation.
The price of rent In the west-south zone it is 267,105 pesos per month for a two-room apartment, while a three-room apartment reaches 362,765 pesos per month.
Avellaneda heads the list of neighborhoods with the highest price on the market, with a value of 305,358 pesos per month, followed by Ciudadela (301,645 pesos per month) and Wilde (296,734 pesos per month). On the contrary, the rentals The most economical ones are in Burzaco (175,783 pesos per month), Merlo (200,659 pesos per month) and Moreno (214,140 pesos per month).
Rental supply skyrocketed
After the DNU that canceled the law of rentals, supply skyrocketed in the metropolitan area. Currently, one of the main platforms for offering estate reported a total of 19,000 apartments in rent, which represents 170% more than before the DNU came into force. At the end of 2023, only 6,600 apartments were counted in rent.
These data mark a significant change in the market, where the supply of housing in some neighborhoods of the city of Buenos Aires or towns in the Greater Buenos Aires It was practically zero.
The sale price of real estate increased
According to the Zonaprop report, in GBA Norte, the average price of apartments maintained its constant increase and rose 0.3% in March. The square meter is located at 2,184 dollars, 31.35% higher than the GBA west-south price, which is 1,592 dollars/m2. In the first three months of the year, acquisition prices in northern GBA accumulated an increase of 0.9%. In the last 12 months it fell 0.2% in nominal terms.
A two-room apartment with 50 m2 in northern GBA reaches a value of $108,132 while a three-room apartment with 70 m2 is at $162,062.
The neighborhoods of La Lucila (3,314 dollars/m2), Vicente López (3,255 dollars/m2) and Olivos (2,865 dollars/m2) top the list of the most expensive neighborhoods. While José C Paz Oeste (889 dollars/m2), José C. Paz Centro (943 dollars/m2) and Barrio Infico (967 dollars/m2) are the cheapest.
In the case of GBA west and south, the average price fell 0.3% in March and accumulates a 0.3% decrease in the first quarter of the year, lower than that registered in the first quarter of 2023 (-1. 3%).
The average price of a two-room, 50m2 apartment is $79,243, while a three-room, 70m2 apartment has an average value of $115,870.
Malvinas Argentinas has the highest value on the market, with 2,835 dollars/m2, followed by Tristán Suárez with a value of 2,555 dollars/m2 and Don Bosco with a value of 2,505 dollars/m2. On the contrary, the neighborhoods of San José (546 dollars/m2), Don Orione (625 dollars/m2) and Dock Sud (703 dollars/m2) are the lowest priced.
What happens with profitability in Greater Buenos Aires
In northern GBA, the rent/price ratio grew and stands at 3.77% annually, that is, it takes 26.5 years of rent to recover the purchase investment, 14% less than a year ago.
Belén de Escobar is positioned as the best neighborhood in terms of profitability with a gross return of 5%. They are followed by Pilar and Manuel Alberti, with a gross return of 4.9% each, while La Lucila and Vicente López are the ones with the lowest gross return, with 3.4% and 3.6%, respectively.
In the west-south zone, the rent/price ratio rose slightly and stands at 3.71% annually, that is, 26.9 years of rent to repay the purchase investment. 14% less than a year ago.
Ciudadela leads the ranking of neighborhoods with the best profitability, with an average of 5.8% gross return. They are followed by Sáenz Peña (5.6%) and Santos Lugares (5.3%) while those with the lowest profitable advantage are Adrogué (3.3%) and Lomás de Zamora (3.3%).
Source: Ambito
