For the AIRINC quarterly update, I traveled to Buenos Aires to get first-hand insight into the current housing and inflation trends after the November elections.
The new government announced a stark currency devaluation in mid-December, which has caused drastic inflation in the local currency. This devaluation has resulted in the bank rate coming closer to the blue rate, but there is still a disparity. Nonetheless, the blue rate continues to still be commonly used for on-the-ground exchanges.
Based on my February 2024 Housing survey, rents in Buenos Aires continue to fluctuate for local Argentine peso budgets. However, since our housing budgets are tracked in U.S. dollar values, Argentina’s rising inflation does not have a significant impact.
Currently, the rental housing market in Buenos Aires is experiencing stability in terms of USD costs. The biggest change in the market is the revocation of the 2020 housing clause by the newly elected government in December. This law’s absence now allows for more flexibility and freedom in housing contract negotiations. For example, the contract can now be adjusted for local inflation three or four times a year, a notable change from the previous once-a-year frequency. Plus, contracts that were previously negotiated for a 3-year period are now at the landlord’s discretion.
For assignees moving to Argentina, it is important to know that it is currently difficult to secure a rental property with the monthly rent stated in Argentine pesos. Due to the high national inflation rate of over 18% per month (ARS), landlords prefer to have rental agreements and payments made in USD or EUR to counterbalance price fluctuations. Both parties agree on a chosen payment currency and contract increases, which leads to former rental properties reappearing in the market with these updated terms.
Monthly fees for condominium and utility costs in Argentina are stated in Argentine pesos and are subject to increase each month depending on the inflation rate. The government plans to eliminate some subsidies, but this change has not yet been implemented and will be included in our next update.
It is uncertain what will happen to the market in the future. Prices are expected to rise in ARS but remain relatively stable for USD budgets. Additionally, the impacts of the revoked 2020 law and the removal of utility subsidies are not yet fully realized in the market.
Read more on AIRINC's housing data here. Reach out to us for the latest housing updates and information.
