He real estate market for rental housing It is already another since the entry into force of DNU 70/2023 in December 2023 and, so far this year, not only grew by 174.95% in the City of Buenos Aires, but is heading towards internationalization.
In principle, they have lived together since then three types of contracts: the previous ones still in force, those that were renewed according to updates that were applied and the new ones that were deregulated, with the particularity that Tenants and owners negotiate prices, currency, indexations and terms.
The rental publication prices grew by 4.4% monthly in September, an increase by above inflation, 3.5% in the same month, according to data published by INDEC.
It is waiting for you the initial values of the new contracts stabilize or even remain the same from one month to the next, in order to be able to draw a stable reference horizon.
The contracts registered under the repealed law because they were previously signed contain three-year agreements with annual adjustments by the Lease Contract Index (ICL); and also others, closed in mid-October 2023, with increases every six months according to the Casa Propia index, when the law was modified.
Tenant mobility
In this context, intermediaries recognize that We are beginning to see cases of tenants terminating their contracts under the old rule to get out of it once and for all and go in search of new conditions.
One of the main reasons is the gap that was generated between the adjustment of the ICL and the rental prices of new contracts, which are trading at lower initial values, but with more frequent adjustments.
Those who choose moving can access lower initial prices, although with more frequent adjustments, every three or four months.
Those who decide to remain in their original contracts under the old rental law They will pay a higher price, but frozen for one year.
A practical example of how the market is working would be that In September 2023, the average rent for a two-bedroom apartment in the Autonomous City of Buenos Aires was $225,800.
And when adjusted for the ICL, it went to $774,846 in September 2024, while, with the CPI, The value would have been $697,722.
However, The current average market price is $507,400, a 34.52% less than what tenants with old contracts would pay.
The mismatch occurs because with inflation on the way down the ICL remains above the current CPI, which leads many tenants to evaluate whether it is better for them to terminate and sign a new contract, even assuming the economic and emotional costs of moving, as explained Federico González Rouco, economist specialized in housing from the consulting firm Empiria.
According to data provided by Zonaprop, rental publication prices increased in September 2024 by 124.7% compared to the same month last year.
Despite this increase, contracts adjusted under the ICL, which measures inflation and salaries (with a delay of two months) rose by 243.16% annually.
This increase is considerably higher than the Consumer Price Index (CPI), which grew by 209% in the same period.
It is the current reference for the rent update, so that It ends up being cheaper to start a new contract than to maintain the one that adjusts to the ICL
Another factor that is being considered within the new market is the real impact that mortgage loans will have on the supply of real estate and rental levels versus the value of the installments.
The salaries and the evolution of inflation will mark a more defined profile of the volume that the housing supply.
Airbnb aligns internationally
Also on Airbnb, or temporary rentals for tourism, significant changes are taking place, in principle because It was no longer used as an alternative to circumvent the rental law, now repealed.
In principle, as in other parts of the world, now in Argentina The system specializes in tourism and even incorporated one more app tailored to users and guests, now available from the 16th of this month.
Includes the suggested destinations, suggested search filters and personalized highlights on accommodations, all depending on previous trips and search history.
The changes don’t just benefit guests. TOirbnb also introduces more than 20 improvements for hosts, based on your feedback:
Hosts can now see recommended prices, based on similar listings in their area, and apply them with a single click.
Likewise, they enable customizable templates to send welcome messages, check-in instructions, and more, streamlining communication, and Owners can create custom reports to monitor their income and filter data by payment type and dates.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
