Thought your rent couldn’t get any higher? Think again. Buenos Aires real estate agencies are increasing rent prices far above the Government’s inflation estimates for the year, again. In fact, Ambito reported that some agencies are even asking 35 percent more than what they did for the same property the previous year. In light of a recent court ruling banning real estate companies from asking for two-month rent commission, this could be their way of fighting back.
“The rise in rent above inflation has been going on for years. That’s why we are asking for the law to update [this process] with an objective index that takes into account inflation and salaries” said leader of one of the tenant organizations, Gervasio Muñoz.
Many of the country’s seven million tenants renewing their contracts these days are being asked to agree to a 17.5 percent increase per semester, when the government intends to keep inflation under 17 percent in 2017 as a whole.
According to a report conducted by the housing agency, Reporte Inmobiliario last month Buenos Aires had 7,244 vacancies to rent. The main spots available to rent in the city were in Palermo, Recoleta, Caballito and Belgrano. In average , the monthly price of renting a one bedroom apartment in the City stood at AR $5,800, while a two bedroom stood at AR $6,800 per month. However, that’s an average, so if you were ready to go find that AR $5,800 apartment in Palermo, Belgrano or Recoleta, you might want to just stay put.
In November of last year the Upper house passed the so-called “Rent Law” was aimed to protect tenants from being taken advantage of by real-estate agency and owners. It took into account measures like rent increases being set annually and being put no higher than inflation along with contracts lasting three years instead of two. You can read more about it here. The Center of Real Estate Brokers (CCI) estimated that 70 percent of the current market operates with payments under the table.