Rental Prices in Argentina's Interior Rise Sharply, Bariloche Most Expensive

Rental prices across Argentina are on an upward trend, even after the repeal of the rental law in December 2023 led to a surge in new property listings. In Buenos Aires, the average price for a two-room apartment reached $860,106 per month in the first half of the year, marking a 15.7% increase over the period and a 31.3% rise year-on-year.

However, significant price disparities exist nationwide. While Buenos Aires remains a benchmark, other cities offer substantially lower rates, with some prices up to 35% below the capital's figures. In the country's interior, the rental market has seen even steeper year-on-year increases: 44% for two-room apartments and 48% for three-room apartments in major surveyed locations.

Despite these substantial increases, the pace of rent hikes has slowed for the ninth consecutive quarter. In the most recent quarter, two-room apartments saw a 9.02% increase, and three-room apartments rose by 8.30%. These increases, however, continue to outpace general inflation, which stood at 33.5% in June, according to INDEC's IPC. This sustained rise is attributed to a scarcity of rental supply, a situation not observed in Buenos Aires.

Bariloche, in Río Negro province, stands out as the most expensive city for renters, with a two-room apartment averaging $1,328,335 monthly. In contrast, San Miguel de Tucumán is the most affordable, with average monthly rents of $597,000 for a two-room unit, making it 55% cheaper than Bariloche. Similar patterns emerge for three-room apartments, where Bariloche remains the priciest at $1,733,330 per month, followed closely by Neuquén. San Miguel de Tucumán also leads as the most economical option for three-room apartments, averaging $896,250 per month.

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This behavior is basically due to the scarcity of supply, a fact that, for example, does not occur in the city of Buenos Aires.