Rental prices in the Buenos Aires Metropolitan Area (AMBA) increased 15.6% in the case of houses and 26.4% in the case of apartments in August, more than double inflation, according to a private report. In addition, in the City of Buenos Aires there was a year-on-year drop of 23.8% in the offer. A large percentage of the rental offers for houses and apartments are expressed in dollars.
A two-room apartment with 50 square meters has an average monthly rent of $198,000. A three-room unit with 70 m2 is rented for $260,000 per month, according to the study of the University of San Andres and Free Market. In the northern area of Greater Buenos Aires (GBA), meanwhile, prices move in a similar way. However, there are slight reductions in the western and southern areas of the suburbs.
Reasons for the strong increase above inflation
“This is relevant because in August we experienced a notable rise in the value of the blue dollar, which means that the equivalent in pesos of these publications increased significantly from one month to the next,” said Paula Margaretic, a researcher at the University of San Andrew. According to the analysis, the price per m2 of the monthly rental of apartments in CABA is $6,478. On the northern GBA, it is $5,602. The lowest is recorded in the West GBA with $2,375 per m2.
Regarding what could happen with the rents and the law that has been in force since 2020, which is currently under review in the Senate (after the approval of Deputies to reform two controversial articles, such as returning to two years of duration instead of three and allowing free adjustments between the parties under different indices), Margaretic explained that “if corrections are made, we estimate that at least the supply of rental homes would begin to grow rapidly.”
The report also addressed the values of home sales in the AMBA. In CABA, average prices decreased by 1.1% in August compared to July 2023. In the case of houses, a slight increase was registered in CABA and a moderate decrease in the north, south, and west areas of the GBA.
Apartment prices MoM decreased 0.3% overall; a moderate rise was registered in CABA, of 0.6% and 1.2% in northern GBA. In addition, there was a slight decrease in the rest of the areas: 0.4% in West GBA and 1% in South GBA. Both for purchase and for rent, the neighborhood most sought after by demand is Caballito. In addition, a coincidence is also observed in the south and west GBA, where La Plata and Ramos Mejía stand out as the most privileged places for those looking for a home.
