For the First Time Since 2020, Rental Prices in Buenos Aires Didn't Increase

According to a survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO), and thanks to the deregulation by the Government of Javier Milei, the median prices of rentals in Buenos Aires city remained unchanged in February 2025.

This is an unusual event, unprecedented since before the implementation of the harmful Rental Law, and it recalls what happened five years ago, at the start of the pandemic, when amounts were frozen.

The CESO report indicated that, for the first time, the values did not experience increases from one month to the next and that the year-on-year increase in rents for 1, 2, and 3-room apartments remains below 43%.

In the case of studio apartments, the median rent was $400,000, representing a 42.9% increase compared to the previous year.

For two-room units, the value rose to $500,000, with the same percentage of year-on-year increase, while three-room apartments reached $700,000, reflecting a 40% increase compared to last year.

CESO also highlighted that expenses average 22.2% of the rental listing value, which represents a significant burden on tenants' budgets.

Despite the sharp increases recorded in 2023, under the last year of the Kirchnerist government of Alberto Fernández, the sector highlighted that, under the management of President Javier Milei, the market achieved some stability after the repeal of the Rental Law in December of that year, a regulation that previously set annual contractual adjustments.

According to CESO economist María Celina Calore, this phenomenon is due to a combination of factors. "During 2023, offer prices skyrocketed above inflation and the dollar, as owners sought to cover themselves from prolonged periods without increases. After the repeal of the law, this pressure decreased because now owners can adjust conditions more frequently," she explained.

The CESO report also points out other factors that influenced this dynamic, such as the increase in the number of properties available for rent, driven by deregulation.

Additionally, it highlighted that the appreciation of the exchange rate reduced the demand for temporary rentals by tourists, impacting the Buenos Aires city market.

The increase in supply

Another aspect noted by sector analysts is the almost 200% increase in the total number of properties for rent compared to December 2023.

Meanwhile, Alejandra Vecchio, from Vecchio & Puebla, referred to the current situation of the real estate market: "There is supply and a lot of competition in the sector. In fact, the proposals that come to the market are more economical than what the average Consumer Price Index (CPI) dictates".