Hear
After the repeal of the rental law December 29, 2023, the rental market in Buenos Aires experienced a notable slowdown in listing values for the fourth consecutive month. From which, currently three contract models coexist: those of the first law, those of the October 2023 modification and those of free agreement between the parties under the Civil and Commercial Code by the DNU.
Although the year-on-year figures remain high, Rent increases are already below inflation general accumulated in April, which was 321.6%, with a year-on-year inflation of 289.4%. According to a Real Estate Report survey, used apartments showed an increase of 285.68% in one-bedroom apartments and 292.76% in two-bedroom apartments during the same period. In May, the average value for used two-room apartments in Buenos Aires was $367,442, while The three-room units exceeded $487,500.
This real decrease in values is due to a sharp increase in the supply of rental units for housing, with a 166% increase since December, according to data from the city’s Real Estate College. “The deregulation of rents allowed the sector to regain vitality,” says Diego Frangella, president of the entity. Homeowners are eager to occupy their homes, resulting in properties that were once booked quickly, now staying for weeks on the same listing sites and showing up at any time of day to secure a contract.
The difference between renting a used apartment and a new one is significant. New properties generally have a higher rental cost due to their better conditions in terms of construction and are usually more modern. In contrast, used apartments, although cheaper, may require higher maintenance and repair expenses on the part of the tenant. “This difference is usually between 10% and 15%,” says Daniel Bryn, creator of the real estate monitor Invertire, and adds that today there is not that much difference between both types of properties. “Today the point of disparity is that those that are brand new tend to have a plus: a SUM, a grill, space for bicycles, and that is what gives a little more added value to the rental”, he maintains.
However, with the recent slowdown in rent growth, Used apartments present a more accessible option for those seeking economic stability without sacrificing location.
THE NATION
