The wave of BA rental properties that flooded the market last year injected more options and new construction units into the mix for Cap Fed renters; yet, the increased supply did not trigger a drop in prices thanks to continued currency controls and inflation.
This year the average rental rates for apartments in Buenos Aires have risen 22.7% for two-room units and 16% for three-room units compared to 2012, according to the latest survey from Reporte Inmobiliario. In a broader context, this year’s average rent increases are less than the real inflation rate and in line with the average 20% rental rate increases in Capital Federal in recent years.
“Prices did not rise as much in the neighborhoods where we saw the most new construction,” Reporte’s Jose Rozadas tells Clarin’s Natalia Muscatelli who singles out Palermo, Caballito and Belgrano as three of those barrios where new buildings, ample services and Subte access are strong draws for potential renters in BA.
Rozadas says inflation continues to be the primary culprit for the double-digit rental increases which is eroding the appeal and potential profitability for owning and renting apartments in Buenos Aires over long terms like one or two years. To counter rising costs like porteros (doormen) and ABL expenses, BA property owners have added incentive to market their own properties online via SEO, blogs and AdWords and avoid dealing with local brokers who charge exorbitant commissions. (Full Story in Spanish)
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