The demand to rent two-room apartments in the city of Buenos Aires remains high. Since the Government’s DNU repealed the Rental Law, the proposals continue to expand and different consultancies argue that the publication values of new rentals continue to decrease or, at least, no longer increase with the same force as last year.
Without the Rental Law, owners allocated more homes to the market and the supply expanded between 180% and 200% since the beginning of 2024. However, the costs for a tenant remain high, since expenses also rose more than 160% since May 2023 and average $100,000 per month.
Among the most sought after properties are two-room apartments. The demand is very high, for rentals in pesos, apartments with a balcony or exterior connection are prioritized. In dollars, good equipment and connectivity are sought for studying or working from home.
Camila Castilloby Camila Castillo Real Estate Businesses, highlighted Infobae that “owners can now set their own increases and conditions. In addition, almost all contracts are including sale clauses, which means that properties remain for sale while they are rented. Although this is not to the liking of the tenants, the vast majority accept it.”
Another situation is that, based on free agreements between the parties and in the face of a complex economic situation, tenants also propose counteroffers on the publication price to try to reduce the initial value of the contracts.
According to the Real Estate Report, quarterly increases have moderated since December, now fluctuating at 5% monthly (below inflation). However, the year-on-year figures remain high: rents for used two-room apartments rose by 285.68% until April.
From the market they maintain that at the beginning of the new rental contracts there is a slowdown in the values of two-room apartments in CABA.
Quotes were very high when the DNU came out and, with the increase in supply, owners had to lower prices because the properties were stagnant for more than 6 weeks.
“For example, at the beginning of the year a brand new studio apartment in the Mataderos/Liniers area was approximately USD 400; Now, for that money, you can get a very nice three-room apartment,” Castillo said. After the DNU, the supply of apartments for rent increased considerably, allowing interested parties to take more time to decide and present counteroffers, something that did not happen before.
The values of two- and three-bedroom apartments are adjusting downwards, although there are still disparities reported from the segment.
“The greater supply forces owners to adjust prices to more realistic levels, otherwise they will not be rented. Currently, renting an apartment takes longer because people analyze the market, the price and the value of expenses, which have risen a lot and directly affect the monthly expenditure,” he said. Patricia Contestabileby Patricia Contestabile Real Estate Businesses.
Currently, all contracts are adjusted according to the Consumer Price Index (CPI). In the case of homes, most are adjusted every four months.
Castillo added that “owners no longer have to wait a year to increase values as happened before with the repealed law, which makes renting the property more convenient for them.”
Another factor that can influence the rental market is the appearance of mortgage loans. Although it is still incipient and it is not known exactly how it will evolve, inquiries for the sale are growing, both from people who want to stop renting and from those looking to purchase a property to generate profitability.
Contestabile expanded: “If this evolves favorably, it will impact the rental market. Regarding the rental values for two-room apartments in Belgrano or Las Cañitas, these depend on the conditions of the property and the characteristics of the building, such as whether it has amenities and security. Prices range between $420,000 and $520,000 per month, and are usually agreed upon with a quarterly adjustment according to the CPI.”
By the end of the year, it is estimated that a large part of the people who were looking for rentals would surely start paying for their own home.
“The demand for rentals will decrease a little, but the demand for credit-worthy properties will increase. We receive daily inquiries because tenants prefer to allocate the rent money to the payment of a loan,” said Castillo.
A two-room apartment in Mataderos of 40 m2 starts at $250,000 per month. In the Naón neighborhood, with highly sought-after homes, the values are comparable to Palermo; There, a two-room apartment on Emilio Castro Avenue costs USD 600 per month.
Below are the average rental prices for two-room apartments according to Zonaprop:
Puerto Madero: $1,052,056.
Palermo: $505,329.
Schoolchildren: $491,794.
Núñez: $487,284.
Belgrano: $481,859.
Recoleta: $474,744.
Coghlan: $478,021.
Chacarita: $465,494.
Villa Urquiza: $466,948.
Villa Crespo: $462,626.
Villa Ortuzar: $445,866.
Chas Park: $445,600.
Balvanera: $442,977.
Parental: $437,761.
Villa Pueyrredón: $434,932.
Almagro: $428,279.
Villa del Parque: $426,905.
San Cristóbal: $414,519.
Villa Luro: $414,674.
Villa Gral Miter: $408,844.
Caballito: $408,026.
Agronomy: $406,258.
Withdrawal: $403,783.
San Nicolás: $403,156.
San Telmo: $399,870.
Monserrat: $391,578.
Constitution: $381,994.
Monte Castro: $379,395.
Patricios Park: $383,906.
Barracks: $384,184.
Flowers: $385,100.
Santa Rita: $370,266.
Floresta: $359,190.
Avellaneda Park: $357,222.
Liniers: $342,813.
Lugano: $292,018.
