Rent prices in BA before and after the peso crash

[SecretShopper]

I have been thinking about this and want to try and get some facts from people in BA who actually know. But it appears that the rent prices in BA are around the same price now as they were before the peso really crashed (definitely correct me if I'm wrong). If the price to rent in a certain neighborhood, let's say Palermo, was around 1000USD per month in 2016 for a two bedroom, shouldn't it be a lot lower now? It appears that landlords have significantly raised the price in pesos in order to keep it around the same for foreigners. Now this is cheating foreigners, but it is really screwing over people from Argentina who rely on using the peso. Last time I was there was last year Feb, and the prices of goods and services were about the same (in pesos) as they were the first time I went (2016). But the different is that it really only cost me a fraction of the previous price because of the low value peso and I was essentially paying in dollars (credit card). But the price of rent has appeared to skyrocket (in pesos). I just feel like this really screws over the people in Argentina.

 

[Caribbean Cool]

https://www.zonaprop.com.ar/ SS your assumptions are bogus.

 

[antipodean]

"Higher" prices are nothing to do with foreigners.

Firstly owners buy and sell property in dollars and not pesos. It is unavoidable that a dollar factor comes into a price even in pesos.

Secondly, rents in pesos certainly have higher price tags than a year or two ago - but we also have inflation of 50%ish per year where everything is much more expensive (in pesos) than even 6 short months ago. Every three months long term rental contracts are adjusted by a double digit %, similar to most peso salaries renters earn. Despite this if using the official exchange rate most are pretty much where they were before, if not a tad cheaper.

Thirdly due to a recent change in the law for rental contracts, owners must now pay property taxes (e.g. include them in the rental price) which may be another factor in the "higher" peso prices one sees. Inflation adjustments are no longer a pre-determined amount but now a variable amount set by BCRA. Contracts are also 3 years now instead of 2 years - increasing the risk for owners that the peso will devalue further and losses will be unable to be offset by the BCRA adjustments - hence investors may be looking for a higher starting price in year 1 to offset this risk.

One thing I have noticed is that due to the near total lack of foreign tourists expected in 2021 due to entry restrictions, a lot of nice "short term" (six month contract) apartments are being listed around US$500-600 per month whereas before they would have been closer to US$1000+ or used on Airbnb or other platforms.

My personal perception is that the rental market is a mixed bag at the moment but overall there is less supply in the market at the moment for apartments in ARS and more listings for "mid-level" apartments in USD as some owners avoid renting or seek to avoid uncertainty in the peso.

 

[Redpossum]

You might perhaps find some useful information at the website of Inquilinos Agrupados.

 

[semigoodlookin]

I am paying less for rent now than I ever have in dollar terms, even though the peso value of my rent increased significantly over the last year. Really, no-one who earn in dollars should be moaning about the price of rent in Buenos Aires... it's a bargain.

 

[Somewhereinba]

Housing market is not as bad as it could be, people with dollars are still buying and selling

 

[Kula]

It appears that landlords have significantly raised the price in pesos in order to keep it around the same for foreigners. Now this is cheating foreigners, but it is really screwing over people from Argentina who rely on using the peso.

there are, imho, few maybe about 4 different levels of rent, and those worlds almost never crossing, it is different properties for different people.

The cheap priced rent for locals: nobody speaks English or counts in dollars, landlords are never dealing with foreigners here, not even thinking about them. The prices got much much cheaper on this level if counting in dollars.

There is smallish world of rent, where landlord "thinks" in dollar but it's different one, and it is not affordable and never was affordable for 98% of argentinians anyway.

 

[Kula]

If you really want to worry about people who rely on peso, just talk a bit with the fila near ANSES office. Nobody will be from your Palermo or will care about prices there and what you think was cheap in 2016 will be carisimo even today.

 

[SecretShopper]

Seems like a few people got upset with this post. As I mentioned in the first line, I was looking for facts from individuals who are there. And there were posters who stated some facts and that what I was looking for.

 

[milanesas]

From talking to friends looking to rent, renting apartments or buyings real estate in the past year I wouldn't put too much stock in listed prices for apartment rentals or sales as what you see is the asking price, the aspirational price in other words. Houses are routinely selling for 20-30% less than the asking price without hesitation and rental rates are far more open to negotiation than in the past right now. Wouldn't really work here because of so much being in negro, but a site like Zillow would be super useful to better understand market conditions in BA.