Rent prices on a 2-bedroom apartment in Palermo and Belgrano

As we have mentioned in other occasions, due to the restrictions imposed over the dollar exchange in Argentina, the real estate business has been affected. Since real properties are not sold in dollars now, the real estate transactions have paralyzed, since owners would rather not to sell. Likewise, those who do want to buy a property have to deal with the impossibility of getting dollars, since many owners don't accept pesos.

This has caused the supply and demand in rent to grow, since those who have an empty apartment want to cover the expenses, until they can sell it, and those who can't buy will need a place to live, - so they have to rent.

According to same statistics, renting prices during the last months have slowed down in comparison with last year. Likewise, it is estimated that the raise on rent prices during 2012 will be around 15-20%, despite the inflation that the country goes through. The reason for this situation is that, even though prices go up, tenants cannot pay a higher price on rent, since their salaries don’t increase as they should. So, many owners choose to rent their properties at a lower price, instead of having to pay for all the expenses that an empty apartment generates.

These days, the types of apartments that are most required are those with 1 or 2 bedrooms; most of the people who are looking for this type of apartments are young couples. Moreover, the most popular neighborhoods for renting apartments are Palermo and Belgrano. Both are very trendy because of their strategic location, the great number of shops and places to go, etc. According to the Registry of the "Reporte Inmobiliario", the average price for a 2 bedroom apartment in the City of Buenos Aires during May, 2012 has been AR$2,228. Meanwhile, in 2011, the average price was of AR$2,063, and in 2012, AR$1,801.