Supply and demand: rental supply is increasing in Córdoba and prices are stabilizing

Since the repeal of the Rental Law in December 2023, the Córdoba market has changed radically. The supply of properties has grown rapidly and now exceeds demand. This allows tenants to choose, compare, and negotiate conditions freely.

The availability of properties has returned to pre-pandemic levels, bringing dynamism back to the rental market. Apartments that were worth $500,000 a year ago are now available from $380,000. The free play of supply and demand is generating more reasonable and adaptable contracts.

Lucas Péndola, president of CPI, highlighted that "today any real estate agency has available properties and more balanced values". The excess supply leads to prices remaining stable or even decreasing. State intervention, far from helping, distorted a market that now self-regulates.

More flexible contracts and prices in line with budgets

Thanks to the new regulatory framework, properties that were in temporary rental or directly withdrawn from the market have been recovered. Almost 50% of those units have already returned to the traditional system. This allows for shorter, customized contracts tailored to the real needs of tenants.

Many current agreements are made for 24 months with adjustments every 4 or 6 months. Nine- or twelve-month contracts have also returned, something previously impossible due to legal rigidity. This contractual diversity benefits both owners and those who need to rent for limited periods.

The elimination of bureaucratic obstacles has allowed the sector to operate again with market logic. More competitive agreements have been signed, without tax pressures or forced freezes. People have returned to renting according to their possibilities, and owners to investing with clear rules.

Moderate values and lower delinquency

During the first half of 2024, rents increased between 8% and 13.5%. This is lower than the Consumer Price Index (15.1%) and the ICL (16.5%). In other words, values remained below inflation, which indicates a real slowdown in increases.

96.1% of contracts are paid on time and in full, which reflects stability and greater predictability. Delinquency is below 4%, even lower than in other markets. In the face of uncertain scenarios, the free scheme has caused trust and compliance.

Additionally, tenants analyze their budgets more carefully and compare total costs. The rental price is no longer the only thing that matters; expenses and other costs are also important. This redirects demand to areas with a better relationship between location, quality, and monthly cost of living.

Purchase and sale market still stable, but with opportunities

Regarding the purchase and sale market, prices in dollars remain stable. A one-bedroom apartment is around USD 87,000 in Nueva Córdoba and USD 55,000 in the Centro. A strong reactivation is not yet seen due to the lack of mortgage credit.

However, values show high dispersion according to type, location, and condition. Some units are offered from USD 60,000, while others exceed USD 130,000. This scenario favors investors who know how to negotiate with logic and foresight.

Sales are contained, but rentals show clear signs of a new balance. Owners are regaining confidence in the market. Tenants can choose without being tied to rigid conditions imposed by the State.

What's next: predictability with freedom of contract

For the second half of the year, prices are expected to remain stable or with moderate increases. Everything will depend on vacancy and how supply continues to expand. Today, there are units available for more than 60 days, which forces owners to maintain or adjust prices.

Lucas Péndola pointed out that there are still three types of contracts coexisting in the market: those signed under freedom, those of Law 27.551, and those of the brief Law 27.737. It is estimated that in 18 months, 100% of the real estate stock will operate under free contracting rules.

The repeal of the disastrous rental law marked a turning point. Where there was once rigidity and conflict, there is now predictability, dialogue, and more affordable prices. This is concrete evidence that freedom works and that the market, when allowed to operate, finds its own balance.