When identifying the dynamics by AMBA agglomerates, meanwhile, it is observed that, in February 2023, the monthly variation of the rental price in constant pesos per m 2 of houses was the following:
- CABA: -4.8%
- GBA North: -5.6%
- GBA South: -3.2%
- GBA West: +2.9%
On the other hand, in the case of departments, the MoM change (compared to January 2023) of said price in
- CABA: +11.3%,
- GBA North: +8.1%
- GBA South: +1.7%
- GBA West: +1.6%
Rentals: interannual price variations
taking the interannual variations (February 2023 with respect to February 2022), meanwhile, falls in house rental contracts are observed in all cases:
- CABA: -20.4%
- GBA North: -17.9%
- GBA South: -0.9%
- GBA West: -9.9%
While the rental prices for the case of the apartments registered the following increases and decreases by area in a year:
- CABA: +23.7%
- GBA North: +17.7%
- GBA South: +2.3%
- GBA West: -4.4%
Why did house rental prices drop?
The report notes that the month-on-month drop in home rental prices (which is in contrast to the dynamics in the apartment market) can likely be explained because that rental market is considerably more dollarized compared to departments.
In fact, in AMBA, 76.1% of the houses for rent notices in Mercado Libre they are denominated in dollars, while, in the case of departments, that percentage rises to 34%. And they explain that, “given that the blue dollar increased by 77% year-on-year and inflation by 100%, this drives down the rental price of houses as opposed to the apartment market.”
Likewise, exploiting the granularity of the data by neighborhoods of CABA and municipalities of AMBA, it is observed that the neighborhood of CABA where the highest interannual increase in the rental price in constant pesos per m2 of apartments was observed was Palermo (+49.3% ).
While, in the municipalities of AMBA (excluding CABA), the greatest interannual variation of said rental price of houses and apartments occurred in La Plata (with increases of 6.8% and 22.4%, respectively).
Is it business to have properties to rent?
Finally, the report analyzes the gross annual return that the real estate market is leaving, that is, the income resulting from renting a property for one year with respect to the sale price to have a reference of the level of real estate profitability today, and informs that, in February 2023, the profitability in the housing market is the following in each area:
- in CABA: 4.1%
- in GBA North: 6.5%
- in GBA South: 5.5%
- in GBA West: 4.2%
On the other hand, in the apartment market, the registered profitability is:
- in CABA: 3.9%
- in GBA North: 4.3%
- in GBA South: 3.2%
- in GBA West: 3%
Source: Ambito
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