Rental contracts governed by the old rental law will suffer a new increase in November. Starting next month, the Tenants will have to face increases of 227.3%.
In this way, a tenant that paid a year ago $200,000 for a rentalwill pay starting next week $654,276. This is a considerable jump, which is why many are finding it increasingly difficult to afford the payment. According to Grouped Tenants, Those who rent allocate half, or more, of their income to paying rent alone.
The timeline shows that the adjustment in October was 238%, in September 243.1%, in July 244% and in June 233%. Despite the high prices, these numbers show that the rental contract index shows a slowdown compared to recent times.
The increases are calculated based on the index carried out by the Central Bank, which takes into account the variation in inflation (according to the Indec CPI) and salaries, according to the average remuneration of stable workers (RIPTE).
Although entering into a new rental involves the outlay of a lot of money, there are tenants who, in order to get out of the contracts agreed under the old law, are terminating contracts. In some cases, despite the more frequent adjustments, today they can get rentals that start at lower prices.
How much does it cost to rent today in CABA
A 40 m2 studio apartment is rented for $424,583 monthly while a two-room apartment of 50 m2 is located in $507,422 monthly and one with three rooms and 70 m2 in $682,714 monthly, according to Zonaprop data.
Puerto Madero continues to be first on the list of most expensive neighborhoods in the City of Buenos Aires, with an average price for rent of $1,047,664 per month. Núñez ($570,317 per month) and Palermo ($569,212 per month). For its part, Lugano is presented as the neighborhood with the most economical offer, with an average value of $357,256 per month. They are followed by Liniers ($427,766 monthly) and La Boca ($437,152 monthly).
Most contracts are agreed in pesos
Rental contracts in the City of Buenos Aires are 90% agreed in pesos, according to the latest report from the Statistical Observatory of the Real Estate College. Since the entry into force of DNU 70/2023 in December 2023, the offer of properties for rental housing grew by 174.95% in the City of Buenos Aires. The neighborhoods with the most offers are Palermo, Belgrano, Caballito, Recoleta, Barrio Norte and Puerto Madero, which together account for 60.40% of the total offer published on the main portals. It should be noted that the six neighborhoods are among the most expensive in the City.
Source: Ambito
