Following the turbulence with the Argentinean economy, AIRINC recently published a blog update on the Peso and changes to tax. This blog provides some insights into the housing market.
Our Buenos Aires housing budgets are maintained in US dollars, which has provided more stability in the face of a volatile exchange rate. At the time of our August 2023 survey, rents in Buenos Aires were already pegged to US dollar values at the “blue dollar” rate and were stable although availability of units was limited, and sources were waiting to see the outcome of the presidential election. The devaluation of the official rate in December brought the formal exchange rate more in line with this parallel market but would have had less or no effect on rents already determined in US dollar terms.
However, in addition to the exchange rate devaluation, the new government also declared major regulatory changes. In line with President Milei’s libertarian philosophy, rent control measures and tenant protections were scrapped. For expatriate renters this may change lease lengths and/or availability of units. For those signing leases in pesos outside of Buenos Aires, this will likely change escalation clauses. These changes may also be challenged in court and the overall rental environment is uncertain at the moment. Our onsite February 2024 survey will ask sources about all these developments so that we have a clear picture of how and what expatriates are paying for rent in Argentina.
AIRINC provides ‘at-the-ready’ housing budgets by job level and family size. We do the research for you saving time and giving you the confidence that your support is up to date and competitive. Budgets are based on our continuous surveys and benchmarks of typical allowances across the income and family size spectrum. Our dedicated experts support your budgets, providing you advice and information for your locations.
Read more on AIRINC's latest research results here.