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Rentals: price increases accelerated in the third quarter and outpaced inflation

2020-11-13T13:47:57.226Z


It is the first time in 7 quarters that the increase is higher than inflation. The interannual increase goes from 47% to 52% in the City.


Natalia Muscatelli

11/13/2020 10:29 AM

  • Clarín.com

  • Economy

Updated 11/13/2020 10:29 AM

The rental prices of used apartments in the City of Buenos Aires 

accelerated as of the third quarter of the year, a

period that coincides with the validity of the new rental law that introduced important changes in the rental contracts. 

In that period, the rise in prices averaged 47.9% for studio apartments, 47.8% for 2-room apartments and 51.8% for 3-room units, according to the Buenos Aires statistical agency.

In this way, 

the increases remained above the general level of inflation,

which, according to INDEC, reached

37.7%

year-on-year until September.

They were also above the Consumer Price Index of the City of Buenos Aires (IPCBA), which, on average for the same period, reached 34.5% year-on-year.

The data is part of an analysis of the supply of apartments for rent made by the City's Statistics Directorate based on units of 1 to 5 rooms, used and brand new, according

to data provided by the Argenprop platform.

According to this monitoring, the acceleration in prices between July and September became more noticeable compared to the previous quarter: the rise reached

9.7 percentage points for 1-room units;

11.8 points for the 2 environments and 14.4 points for the 3 environments.

Go up in Buenos Aires rents, according to the different neighborhoods.

Source: Department of Statistics of the government of the City of Buenos Aires

In this way,

after seven consecutive quarters

, the trend changed: rents appreciated at a rate much higher than that recorded by the trajectory of consumer prices.

By neighborhood, the highest rents for used studio apartments were registered in Núñez ($ 19,494) and Belgrano ($ 19,451);

while the lowest value departments were observed in San Nicolás ($ 15,214).

In the case of the used 2 rooms, the highest prices corresponded to units in Núñez ($ 26,069), followed by Palermo ($ 25,901);

while again in San Nicolás ($ 19,770) the lowest average income was found.

Meanwhile, for a used 3-room apartment, Palermo ($ 40,617) and Villa Urquiza ($ 39,857) were the most expensive neighborhoods;

Balvanera ($ 30,039) was positioned at the other end.


The price gap between the commune with the most expensive rentals and the one with the lowest appreciation was the highest for the 3-room segment (34.5%).

"For all the sets of apartments used there was a greater concentration of prices per commune around the average rents, with relatively more limited distances between maximum and minimum values," said the report.

Some of the modifications contained in the National Rental Law (No. 27,551) are the extension of the term of the contracts to 3 years, the annual update frequency based on a coefficient between the Consumer Price Index (CPI) and the Average Taxable Remuneration of Stable Workers (RIPTE), the obligation for the landlord to register the contract in AFIP as well as the payment of extraordinary expenses and taxes that are levied on property and intermediation only by a registered professional .

In the case of the City of Buenos Aires, the regulation indicates that commission can only be charged to the owner of the property.

Rentals in the city of Buenos Aires

Another study carried out by the property portal

Zonaprop

also detected the rise in rents: it revealed that, after the enactment of the new law, the increases reached 31.8%.

And that, in turn, so far in 2020, they

accumulate an increase of 52.3%,

that is, double that of inflation.

However, according to this analysis, there are signs that, starting in November, the dynamics of rents will show a convergence to levels of adjustment prior to the enactment of the law, with increases similar to inflation.

NE

Look also

Temporary rentals: an option for owners as a result of the new law?

Rental prices have risen 27% since the new law regulating contracts was promoted

Source: clarin

All business articles on 2020-11-13

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