In 2024, the supply almost tripled compared to what it was when the Rental Law regulated the sector
In 2024 the offer of estate for rent In the City of Buenos Aires it increased by 197.44%, according to an analysis carried out by the Real Estate College. That is to say, the offer almost tripled compared to what it was when the Rental Law regulated the sector. 95.96% of the current offer are apartments.
The growth of the rental stock had an impact on a drop in prices, with the values of the rentals growing below inflation, that is, falling in real terms. The data from the report show an average real decrease of 36.8% in contract values. That is, those who start a new rental are agreeing to lower prices.
Effects of DNU 70/2023 on rents
Faced with the extension of contracts in dollars mostly during the years of the Law of Rentalstoday 90% of contracts are agreed in pesos, with adjustment periods of three or four months, generally indexed to inflation.
After a few years in which the Law required three-year contracts, the repeal led to the agreed term of contract duration once again being 24 months. Tenants and owners are mostly agreeing on contracts for 24 months, in pesos, with quarterly adjustment using the CPI (Consumer Price Index published by the INDEC) or ICL (Index for rental contracts published by the BCRA).
The Report also shows that the 6 neighborhoods with the greatest supply are Palermo, Belgrano, Recoleta, Barrio Norte, Caballito and Puerto Madero. Together, they explain 58.96% of the total supply. Palermo was the neighborhood with the most offer: it has 3,805 properties, which represents 22.62% of the total.
Finally, it is important to highlight that, in this last year, the average gross profitability of leasing contracts is 6.35%, a value that is in line with world standards, and that triples what was obtained in annual income in times of the Law of Rentals. This has not had an effect on the fulfillment of contracts, since today the late payment of rentals It is practically non-existent in the City.
Commercial rentals
As for the rentals commercial premises, there are 1997 commercial premises published, which means 1.15% more than the previous period. Of the total supply of premises (sale and rental), 27.82% are for rent.
Regarding the offices, there are 5700 published, which represents 2.28% less than the previous period. Of the total office supply, 55.50% is for rent.
Construction data
In November 2024, 74 permits were granted for new construction. An increase of 1.37% is observed compared to the previous month. The area registered for new construction in said period is 139,150 m2, which represents a decrease of 20.20% compared to the previous month.
The neighborhood with the most permits granted is Palermo (with 10 permits), representing 13.51% of the total.
Source: Ambito
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