Recession has slowed rental rises in the capital – 29/11/2018

The slowdown in the real estate market has also affected the rental segment, at least in the federal capital. In the third quarter of the year, the price of m2 to rent average annual increase of 31% in the departments used. This implied a deceleration from the increases calculated in the previous quarter.

According to data collected by the Bureau of Statistics of the City of Buenos Aires, information from ArgenpropThe monoambients used, increased in the quarter, 35.8%; 2-room apartments (accounting for 46% of all CABA locations) increased 31.8% and 25.8% was the increase in units used in 3 environments, which account for 24.2% of the market.

The slowdown in rents during this third quarter is linked to the contraction of the market in general and the inability for homeowners to adjust the values ​​to the low income of tenants, explains the real estate sector.

In contrast, rising rents for units of 2 and 3 environments was lower than the price change According to the Consumer Price Index of the City of Buenos Aires (IPCBA), on average for July / September, it reached 34.7% 1 year-on-year. However, the evolution of monoambientes continued slightly above.

From the second quarter of 2017 to April / June of this year without interruption, City rents they were valued at a rate higher than that recorded by the evolution of consumer prices.

By neighborhood, the highest prices calculated for monoambientés have been verified Palermo ($ 10,120) and Recoleta ($ 9,599); meanwhile, lower value departments have been observed Liniers ($ 7,029) and Floresta ($ 7,032).

In the case of two main rooms, the highest prices were for Puerto Madero ($ 21,635) and Palermo ($ 13,876); in Villa Luro ($ 9,461) and Vélez Sarsfield ($ 9,542), the lowest average income was found.

For a used 3-room apartment, Núñez ($ 20,050) and Palermo ($ 19,749) were the most expensive neighborhoods; at the other end, Villa Gral, Miter ($ 14,631) and Liniers ($ 14,929).

By municipality, the most pronounced price dispersion It has been verified in the property segment of 2 environments, where the gap between the maximum rent (Comuna 14, Palermo) and the minimum (Comuna 10, Floresta, Monte Castro, Velez Sarsfield, Versailles, Villa Luro and Villa Real) in July and September, 44.7%.