March 10, 2014
City: rent prices increase 26 percent in 2013
Value of square metres for selling in pesos rises 42 percent, less than annual devaluation
Up go apartment blocks in the big smoke and up go their prices, according to a new report on last year’s property market that shows rental prices soared as much as 26 percent for residents in the City and 22 percent for people living in Greater Buenos Aires.
From December 2012 to the same month last year, average City prices jumped from 2,382 pesos for a 42 sq-metre apartment to 2,997 pesos, with the biggest jump registered in Palermo and Las Cañitas where average rental prices rose 32 percent to 4,183, while the Almagro and Boedo area saw the lowest rental price increase at 19 percent, the report by private firm ZonaProp revealed. The exclusive warfside district of Puerto Madero was the most expensive place to rent, with real estate agencies in the area charging 6,216 pesos on average.
Farther afield in Greater Buenos Aires, rental prices followed a similar trend, closing the year 22 percent higher on averaging. The Vicente López district was the most expensive to rent in, with prices average 3,213 pesos for a 42 sq-metre property, while San Isidro was not far behind at 3,091 pesos. Both districts are located close to the northern border of Buenos Aires City.
Peso vs. dollar
In a market renowned for its dollar-only attitude, the report also highlighted the fluctuations in dollar- versus peso-based transactions.
Sales of property in pesos dropped 35 percent during the year, with property developers taking the lion’s share of peso-based sales at 75 percent.
However, 80 percent of properties in the capital and 69 percent in Greater Buenos Aires continue to be sold in dollars.
“This figure managed to drop 71 percent but after the Central Bank announced the availability of CEDIN (dollarized certificates for the sale and purchase of property in mid 2013), the property market moved back to the dollar,” the report explained.
Currently, only 13 percent of properties on the market in Buenos Aires City are being offered in pesos.
Sales per square metre in dollars were stable in the City during 2013, ending the year at US$2,070 on average, which represents zero change compared to the same month in 2012. What’s more, prices in nine of the 15 neighbourhoods showed losses in value.
In Greater Buenos Aires there was a slight increase in sales per square metre to US$1,674 on average — a four-percent increase from December 2012 — though sales tended to slow toward the end of the year, the report noted.
In the City, Puerto Madero and Palermo/Las Cañitas were again the most expensive neighbourhoods on the market, demanding US$4,547 and US$2,755 per square metre, respectively. And like the rental landscape in Greater Buenos Aires, the Vicente López and San Isidro districts were the priciest to buy into, with average prices per square metre of US$2,387 and US$2,168 respectively.
For those wanting to buy per square metre in local currency, prices in the City during 2013 rose 42 percent from 12,499 pesos to 17,738 pesos, due in large part to the growing gap between the official exchange rate and the black-market rate, which has, since the start of the year, begun to shrunk after new foreign currency-buying measures were authorized by the AFIP tax bureau. In Greater Buenos Aires, buyers could expect to pay 13,414 pesos on average per square metre in December last year, up 33 percent from 2012 when that figure came in at 10,122 pesos.
Finally the report looked at parking spots, revealing little movement in the sale price in the City, but an increase of 18 percent in rentals, from 699 pesos per month in December 2012 to 827 pesos per month in the same month of 2013.