The rental housing market has undergone significant changes since the entry into force of DNU 70/2023 in December 2023. So far this year, it has grown by 174.95% in the City of Buenos Aires and is heading towards internationalization. Currently, three types of contracts coexist: those still valid from previous agreements, those renewed according to updates, and the newly deregulated ones, where tenants and owners negotiate prices, currency, indexes, and terms.
Despite an increase in supply, the market appears to be approaching equilibrium. Rental prices increased by 4.4% monthly in September, above the inflation rate of 3.5% in the same month, according to INDEC data. It is expected that the initial values of new contracts will stabilize or remain from month to month in order to establish a stable reference horizon.
In this new scenario, cases have been observed of tenants terminating their contracts under the old regulation to seek new conditions. The gap between the ICL adjustment and the prices of new contracts has motivated some tenants to move in search of lower initial prices, although with more frequent adjustments. On the other hand, those who decide to remain in previous contracts will pay a higher price but frozen for a year.
According to Federico González Rouco, an economist specialized in housing from the consulting firm Empiria, the gap with declining inflation has led many tenants to assess whether it is worth terminating and signing a new contract, assuming the costs of moving. Rental publication prices increased in September 2024, although contracts adjusted under the ICL have risen considerably more than the Consumer Price Index.
Additionally, the impact of mortgage loans on the supply of properties and rental levels is being evaluated in relation to the value of the installments, depending on the evolution of salaries and inflation. On the other hand, in the field of temporary rentals for tourism, Airbnb has experienced significant changes by specializing in tourism and improving the experience for both guests and hosts, with new functionalities available since this month.
