With a recent increase, in March of 8.3% on average. Rental prices in the city of Buenos Aires continue to rise. It happens that in the first quarter of the year the increase was on average 25.7%, while in the last quarter of 2022 the increase was 17.3%, according to a survey carried out on the basis of real estate portal alerts Zoneprop. AS, In the last 12 months, the rental price accumulates an increase of 118.6%, higher than the general inflation.
If you include all of AMBA, the increases were stronger in apartments than in homes. This occurs because the market for rental homes is significantly more dollarized than for apartments. In this area, 77.1% of listings for rental homes are denominated in dollars, while in the case of apartments this percentage rises to 34.5%”, according to monitoring by the University of San Andres and Mercado Libre.
Taking the values in pesos, according to ZonaProp, The rental value of a studio apartment in CABA is $96,578 per montha department of two rooms fetches $116,822 per month and a unit of three rooms and 70 m2 for rent for $156,078.
Currently, Palermo is positioned as the most expensive neighborhood in the city of Buenos Aires with an average price of $148,488 per month. Chacarita and Villa Ortúzar follow with $141,183 and $136,564 a month, respectively. In the central area are Villa Pueyrredón ($114,151 per month), Boedo ($111,854), and Villa Gral Miter ($106,903). the neighborhoods The cheapest to rent are Mataderos ($81,992), Liniers ($86,953), and Floresta ($90,456). ).
In this context, the rent/price ratio – i.e. the level of profitability for the owners – “rises slightly and stands at 4.47% annually. In other words, 22.4 years of rent are required to recoup the initial investment. This value is 22% lower than what was requested a year ago,” according to the platform.
The best neighborhoods for rental investors are San Cristóbal and Balvanera as they have an average yield of 5.5% and 5.4% annually respectively. Conversely, Liniers and Villa Devoto are those that generate the lowest profitability (3.6% and 3.8% respectively).
Market distortions are the blows of the new Rental Law in force since July 2020 and prices have risen due to a contraction in the supply of rental properties.
In this regard, Miguel Di Maggio, director of Depa real estate, recalls that “when the law was voted, inflation was already at 50%. So, many landlords, before this law, adjusted 25% every six months. Today we find ourselves with annual adjustments that already exceed 90% and are increasing. And this barefoot not only the landlords but also the tenants. Because, clearly, the problem is not only the law but also inflation,” he mused.
Another barrier to entering a new rental is that some properties they began trading in dollars, “mainly starting in February 2022,” says a report by the Scalabrini Ortiz Center for Economic and Social Studies (CESO).
According to Di Maggio, “a large part of this market is dollarised. Without excluding the area. And prices in dollars are rising. Because it is the only way, for now, in which the shipowner does not lose so much in the face of inflation dollar contracts are not legal and should be weighted,” he said.
If we evaluate the evolution of rents with respect to the purchasing power of the salary, according to the surveys carried out by CESO, the Minimum Vital and Mobile Salary, which was $69,500 in March, has come to cover 86.9% of the rent for a studio apartment, estimated at $80,000.
In the case of the median bids for one bedroom apartments it is $90,000 and $150,000 for three bedroom apartments. In each category, the prices vary according to other characteristics such as age, whether it has a garage, etc.) and its environment (infrastructure, transport availability, proximity to shopping centres, among others). These values do not include expenses, which reach an average of 15.6% of the cost of the offer price of a rental.
Source: Clarin
