Rents: apartment prices continue to rise, but houses are falling

Rents have been increasing for two years while the law governing the sector remains unchanged. However, within this trend, new nuances are being registered. In August, the prices of real estate rentals in the metropolitan area (AMBA), have registered victims in homes, while departments continued on the upward curve.

At that time, house rents were recorded at constant prices (ie in real terms). a decrease of 2.1% per square meter while for departments, the increase was 2.2% on average compared to July 2022.

In relation to interannual variations (i.e. August 2022 compared to August 2021) is observed a 25% drop in the real estate marketand a 2.4% increase in the apartment market, as shown by a survey conducted between the University of San Andrés and the Mercado Libre.

Distinguishing by agglomeration, in the inter-monthly variation, the rent per m2 of houses decreased by 2.9% in the City of Buenos Aires; had a 1.4% decline in GBA North: 2.4% in GBA South and 2% in GBA West.

On the other hand, in the case of the departments, the monthly price increase in CABA, North GBA, South was 1.8%, 4.8% and 1.7% respectively and fell 1.8% % in West GBA.

Homes were most in demand in the early days of quarantine and post-pandemic, but they failed to capture the election of potential tenants in recent months. Especially in the Northern GBA.

The drop in rents for this type of property is then due to both an 80% increase in the supply of rental homes compared to a 40% drop in demand, comparing August 2022 with August 2021 in both cases, according to the report.

Another relevant factor is that this market is highly dollarized And because headline inflation was higher than the change in the “blue” dollar over the past year, that pushed down the real change in annual rents, the study said.

By neighborhoods, it was found that the CABA neighborhood in which the the highest annual increase in constant apartment prices was Palermo (50.7%). On the other hand, considering the municipalities of AMBA (excluding CABA), the greatest interannual variation of dwellings occurred in Moreno (12.7%), while, in the case of the departments, the greatest increase is recorded in La Plata (48.2%), according to UDESA.

According to the measurements made by the Real Estate Report website, the average value of the departments of the city of Buenos Aires in August it was nearly $ 50,000, for those with two main rooms. While the units of 3 environments listed above $ 61,000.

However, according to his analysts, “beyond the public supply averages for standard units, if you look for a unit in good condition, the values ​​far exceed these averages. The problem is that the alerts last so short, only hours on the portals, so the values ​​of the good units in the figures are hardly verified, “they commented.

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