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Rentals: the number of apartments on offer in the City of Buenos Aires falls 30%


The reduction in notices is verified more strongly in the areas with the highest historical concentration of operations.

Since the new rental law was implemented in July 2020, one of the most notorious impacts -besides the rise in prices- was the

progressive decrease in supply


This situation became more evident in the City of Buenos Aires

s and, just taking into account the last year,

you see a 30% decrease in the number of available properties.

The data is part of an analysis in the City on a universe made up of units from 1 to 5 rooms, used and brand new, published on the real estate portal Argenprop.

The first variable that stands out in the study is the evolution of prices.

In the fourth quarter of last year, the latest data available, there was an increase in the published price per square meter for rental of used apartments, which averaged 103.9

% for studio apartments, 95.2% for 2-bedroom apartments rooms and 85.9% for those with 3 rooms.

The average valuations for the base units reached

$60,222 (1 room), $77,829 (2 rooms) and $116,074 (3 rooms)


If it is analyzed, in interannual terms, the increase in the value of rentals had a significant acceleration compared to the previous quarter in all segments, although it was more accentuated in the case of studio apartments.

If the period of the last three years is considered, the rents accumulated

an average increase of 370%

, very even in the three cases.

Three-room apartments led the increases in the first year;

in the following years, the smallest units recovered their growth rate.

In addition, the increase in the rental price for the smallest units (up to one bedroom) was higher than the variation of the


Consumer Price Index

(IPCBA) which, on average, for October/December reached 89.2%. in year-on-year terms.

The exception were the 3-room apartments.

In addition to prices, the second conclusion of this market observatory is the behavior of

the offer


According to statistical data provided by the Buenos Aires government, "the stock on offer (at the end of 2022) increased by 2.2% compared to the previous quarter, although it meant only two thirds of the

volume of publications in the same period of 2021"


To have an idea of ​​how the rental housing market has shrunk, it is enough to say that in 2022 the apartments offered for rent averaged 3,000 units per quarter, a lower number even than the set available during the pandemic.

Another aspect that the study highlights is the change in the type of properties available for the rental market:

brand new publications increased their participation

to a value of more than 10%, the highest computed since 2018.

In addition, there was a lower relative incidence of the communes with the largest number of rental units in the total supply.

In other words,

the reduction in available publications was verified more strongly in the areas with the highest historical concentration of apartments for rent.

The most valued neighborhoods continue to be found in the North corridor, where at the same time the most pronounced increases

are detected

, especially for 1 and 2-room publications.

Thus, the units in this area

more than doubled their value year-on-year.

With little geographic coverage of the price of 1-room units, the

highest rents were observed in Palermo ($66,914)

and the most affordable in San Nicolás ($53,349).

For the

2 environments

, the highest valuation corresponded to publications in

Palermo ($91,677)


meanwhile, in Balvanera ($69,299) and San Nicolás ($69,475) the lowest average amounts were found.

For the

3 rooms, Núñez ($147,029) and Villa Urquiza ($146,347)

were the most expensive neighborhoods;

at the other extreme was positioned Flores ($104,291)

According to the Professional Real Estate Council (PCI), the rental supply currently represents only 4.23% of the total number of properties.

And it predicts that the sustained trend of falling supply levels allows us to foresee that

prices will continue to rise.


look too

Rentals, fuel, rates, prepaid and telephony: the 5 increases that will hit your pocket in February

The rise in inflation brings bad news for the Buenos Aires middle class: what that sector consumes is what becomes more expensive

Source: clarin

All business articles on 2023-02-16

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