After the strong increase in the last semester, the increase moderated in January

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After the entry into force of the Decree of Necessity and Urgency 70/2023 of the National Government, the Rental Law (No. 27,551), enacted in 2020 and modified in 2023, no longer applies. The modifications to the regulations generated a great impact on tenants and in the real estate market.

To find out how these changes influence the supply and demand of properties in the city of Córdoba, specialists in the subject have been carrying out special monitoring of rental prices in the main neighborhoods of the Capital.

The numbers correspond to the discussion about the new rents that are agreed, and not about the current contracts that maintain their values. At the same time, they warn that each case has its particular nuances, and therefore the results are averages.

One of the studies took as a reference the rental price of a one-bedroom apartment, with an average value, in the most important neighborhoods of Córdoba.

Thus, according to the survey carried out by Matías Merguerian, from the consulting firm MV Real State, based on the data that arises from the Clasificados La Voz platform, rents increased in the last semester (August-January) by 130.1%, well above inflation, with a difference of 52 points with respect to the evolution of the Consumer Price Index (CPI), which was 78.1% in the same period.

Rents no longer rise due to inflation. (Photo: Archive)

But if only the last month (January 2024) is taken, it results in an average increase of 23.24% compared to an inflation of 25.47% in December.

In this regard, the consultant said that the uncertainty due to the macroeconomy, the increase in the cost of living, the type of contract updates and the greater supply generate a lot of caution in the real estate market demand for residential rentals.

Furthermore, “the freedom of location formats caused new units to enter the market, and that is why prices stopped rising. There is an accommodation of deadlines and forms of negotiation,” said Merguerian.

Prices by neighborhood

In the sample carried out semi-annually and monthly by Merguerian to find out how prices evolved in the nine most representative neighborhoods of the city of Córdoba, one-bedroom apartments were taken as a reference.

For example, in the Nueva Córdoba neighborhood, the semiannual increase was 128.87%, and the monthly increase was 17.86%. Currently, rent for a reference apartment costs $270,500.

Meanwhile, in the General Paz neighborhood, the semiannual increase was 126.32%, and the monthly increase reached 21.87%, with an average rent of $284,500. In the Center, the semiannual increase was 133.16% and the monthly increase was 23.37%: the rent costs $222,430; In Alberdi, the increase was 147.20% every six months, 25.43% monthly, with a rental value of $211,600.

In Nueva Córdoba, the semiannual increase was 128.87%, and the monthly increase was 17.86%, and currently the rent costs $270,500. (Pedro Castillo / The Voice)

In the case of the Alto Alberdi neighborhood, the semiannual percentage was 135.17%, the monthly percentage was 22.21%, and today a rent is available for $195,900. Meanwhile, in neighborhoods like Alta Córdoba, the six-monthly increase percentage was 119.30%, the monthly increase was 24.22%, and a rental in that neighborhood costs $200,000.

In turn, in Cofico the semiannual increase was 129.42%, the monthly increase was 26.35%, with an income of $212,900; In Güemes the increase in the semester reached 134.78%, in the last month it reached 30.76%, while the rental value was $237,600. Finally, in the Observatorio neighborhood, the semiannual increase was 116.71%, the monthly increase was 17.09%, with a current rental value of $182,900.

another study

In another report on rental prices, economist Juan Pablo Carranza, who has monitored the sector since December 2023 with data from real estate market portals in Córdoba and the city of Buenos Aires, points out that in the Córdoba capital there is currently a higher real estate offer, and that prices vary according to areas.

The diagnosis that was taken as a reference to carry out this analysis is a 45 square meter apartment in the 10 most sought-after neighborhoods in the city of Córdoba, between January 2 and January 29.

Thus, in the Nueva Córdoba neighborhood, the rental price increased by 2.7% in said period (It went from costing $281,250 to $288,723). A lower percentage if one takes into account that January inflation would be well above that value, the economist indicated.

In other neighborhoods, such as Alta Córdoba, rents increased 13.5% in January and in the Center by 10.4%. In other sectors of the city, such as Villa Belgrano, prices fell by 9.3%, and in the General Paz neighborhood by 8.8%.

Carranza explained that in Córdoba there is not much dollarized offer unlike the Autonomous City of Buenos, where the value of rentals increases according to the increase in the “blue dollar.”

Comparisons

The monitoring compared prices from January 2 to 29, 2024, taking as reference a 45 square meter apartment with an average monthly value. And the results were the following:

– In Villa Belgrano the rental price dropped 9.3% (it cost $321,488 and now $291,511).

– In Nueva Córdoba, the rental price increased by 2.7% (it cost $281,250 and now $288,723).

– In General Paz, the rental value fell by 8.8% (it cost $257,673 and now $235,125).

– In Observatorio, the rental price rose 3.7% (it cost $213,000 and now $220,909).

– In the Center, it rose 10.4% (from $234,374 to $258,750).

– In Güemes the average price rose 10.3% (from $229,591 to $253,125).

– In Alto Alberdi the rental price increased by 7.9% (it cost $199,999 and went to $215,700).

– In Alberdi, the rental price increased by 7.1% (from $210,000 to $225,000).

– In Alta Córdoba, the price rose 13.5% (it cost $202,500 and now $229,900).

Tenants foresee a terrible 2024

92.9% of tenants thought that 2024 will be worse than last year.

The Grouped Tenants association carried out the National Tenant Survey in which he measured the conditions of the rental contracts signed before and after President Javier Milei took office.

The report found that of the 3,300 people consulted, 92.9% expect that 2024 will be worse than last year in terms of rental costs. Furthermore, they claim that in the last month the conditions for tenants have worsened when it comes to renting a home.

Regarding deadlines, 87.3% revealed that the contracts signed after the DNU are updated for periods of less than six months, of which 25% are every three months. Instability in access to housing is one of the factors that most impacts the sector.

At the same time, 31.6% of tenants’ income is used to pay rent plus expenses, without taking into account taxes and utility rates.

The survey also showed that 53.1% of households have debt of some type. And among those who rent and find themselves in debt, more than 64% resorted to a loan to pay rent, food or expenses for medical emergencies.

In this regard, Maximiliano Vittar from Inquilinos Córdoba, expressed that although it appears that there are improvements in the real estate sector, for the tenant there is still no solution. “With the elimination of the Rental Law, the supply of rental housing did not increase and prices did not decrease,” he indicated.

At the same time, he stated that the situation of those who rent is worrying due to the short contracts, three or six months at most, and the frequent increases in rents.

“In addition, what is worrying are the conditions. We have seen contracts where a rental is established for two years, but the owner can sell the house before that time. And if he sells it, the tenant is left on the street,” he said.