Since the entry into force of the new rental law in July 2020, one of the most well-known impacts, in addition to the price increase, has been the progressive decrease in supply. This situation has become more evident in the city of Buenos Airesif, taking into account only the last year, see a 30% decrease in the number of properties available.
The data is part of an analysis by the Municipality on a universe made up of used and brand new units with 1 to 5 rooms, published on the Argenprop real estate portal.
The first variable that emerges from the study is the evolution of prices. In the fourth quarter of last year, the latest data available, there was an increase in the published price per square meter for the rental of used apartments, which on average 103.9% for studio apartments, 95.2% for two-room apartments and 85.9% for three-room apartments.
Average values for base units reached $60,222 (1 bedroom), $77,829 (2 bedrooms), and $116,074 (3 bedrooms). If we analyze it in interim terms, the increase in the value of rents had a significant acceleration compared to the previous quarter in all sectors, even if more accentuated in the case of studio flats.
If we consider the period of the last three years, the accumulated rents an average increase of 370%, very uniform in all three cases. Three-room apartments lead the increases in the first year; in the following years the smaller units recover their growth rate.
Also, increased rental price for smaller units (up to one bedroom) was higher than the change in the consumer price index of the City (IPCBA) which, on average, for October/December reached 89.2% in interim terms. The exception was three-room apartments.
In addition to prices, the second conclusion of this market observatory is the behavior of the offer. According to statistical data provided by the government of Buenos Aires, “the security on offer (at the end of 2022) increased by 2.2% compared to the previous quarter, even if it meant only two-thirds of publication volume in the same period of 2021”.
To get an idea of how the rental home market has shrunk, suffice it to say that apartments offered for rent averaged 3,000 units per quarter in 2022, lower than even the set available during the pandemic.
Another aspect that the study highlights is the change in the type of properties available for the rental market: brand new posts increased their engagement up to a value above 10%, the highest calculated since 2018.
Furthermore, there is a lower relative incidence of the municipalities with the highest number of rental units on the total supply. This is The reduction in available publications occurred more markedly in areas with the highest historical concentration of rental apartments.
The most popular neighborhoods continue to be found in the North corridor, where at the same time the steeper risess, especially for 1- and 2-stanza releases. Therefore, units in this area value more than doubled year on year.
With little geographical coverage of the price of studio units, the Highest rents were seen in Palermo ($66,914) and the most accessible in San Nicolás ($53,349). For the 2 bedroomsthe highest rating corresponded to the publications of Palermo ($91,677); meanwhile, the lowest average amounts were found in Balvanera ($69,299) and San Nicolás ($69,475). For the 3 bedrooms, Núñez ($147,029) and Villa Urquiza ($146,347) they made up the most expensive neighborhoods; at the other extreme was Flores ($104,291)
According to the Professional Real Estate Council (PCI), the rental offer currently represents only 4.23% of total properties. And he expects the continued downward trend in supply levels to allow us to get ahead of that prices will continue to rise.
Source: Clarin
