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A home in CABA takes about 45 days to be rented, compared to 72 hours last year: what are the average values - Infobae
Source:
www.infobae.com
September 08, 2024
With the government's DNU, the offer expanded in almost all neighborhoods of Buenos Aires, but the amounts requested are an obstacle and prevent the demand from quickly validating the prices requested by the new units.
By Jose Luis Cieri
Before the DNU, high demand allowed many properties to be rented without even being published, with long waiting lists and reservations that were made within the first 48 to 72 hours of their offer (Illustrative Image Infobae)
Currently, the rental process has experienced a considerable slowdown compared to the crisis context of last year. The real estate market outlook in the Autonomous City of Buenos Aires (CABA) has substantially extended the time to rent properties after the repeal of the Rental Law through the Government's DNU.
Until the end of the year, in a context of unprecedented shortage of properties in traditional rentals in the last 50 years (mainly due to the rejection of the owners to the repealed regulations), the rental market was dominated by offers in dollars. The few homes that were offered in pesos were rented in just 72 hours on average, sometimes without the tenants having seen them beforehand. There were few of them, and that is partly why they were rented so quickly.
Times have changed. Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, told Infobae: “In the last three months, a home can be rented in about 45 days, whereas last year, in many cases, they were rented without even being published.”
This change in times is due in part to the significant increase in supply and the high costs of expenses ( in CABA they average $188,919 per month ), added to prices that demand cannot pay.
Braña added that for properties with low expenses, the process can be faster, but in general, the time does not exceed more than two months. Another reason why properties take longer to rent is the greater demands of some owners.
“The lack of the necessary deposits to rent an apartment is another problem. Several owners require guarantees that are difficult to meet,” explained Oscar Puebla , architect and real estate expert.
Soledad Balayan , a real estate market analyst at Maure Inmobiliaria , said that now “showing a property for rent is more work than before because more people visit it,” which reflects greater competition and analysis by interested parties. The expert highlighted a notable increase in demand during the last month, which facilitated the rapid absorption of the available supply.
The slowdown in inflation will probably reduce tenants' fear of adjusting to contracts indexed by the Consumer Price Index (CPI). "Agreements with the same characteristics as at the beginning of 2024 predominate, after the DNU came into force, with a duration of two years and with CPI adjustments every 3 or 4 months. In other cases, the Lease Contract Index (ICL) is used," said Balayan.
There is a noticeable decline in the rental capacity of families, as income did not grow at the pace necessary to cover not only rental costs but also other essential household expenses.
Currently, the real estate offer for rent in CABA is made up of 97% of apartments and the rest is divided between houses and PH
Braña pointed out a change in tenant preferences: “They are looking for properties like PHs or houses, but unfortunately, this is a type of housing that is becoming extinct. Today, 97% of the offer is apartments in buildings. Those interested try to avoid high expenses, and when units appear whose expenses do not exceed 10-15% of the rent, they are quickly rented.”
Since the end of the year, the supply of rental properties has climbed by almost 200% in CABA , resulting in lower prices compared to those at the beginning of 2024. Tenants who signed contracts in December, with adjustments based on the CPI, now face higher rents than current market prices. This change is due in part to the greater availability of properties, adjusting prices downwards.
Puebla explained: “Currently, there is a growing demand for larger apartments, suitable for families, with one or two bedrooms. The most sought-after ones are located near means of transport such as subway stations and metrobus stops.”
As for rental contracts, in some cases "dollar adjustments or variable rates are also used depending on the market situation," he added.
Rental prices, in nominal terms, did not increase significantly; in fact, reports indicate falls in real terms, below the rate of inflation.
Real Estate Report confirmed that during the period from July 2023 to July 2024, inflation reached 285.9%; in contrast, rents for standard quality used apartments increased by 184.25% for two-room units and 174.28% for three-room units.
Now, tenants will see the property before renting, given that there is a greater supply available. A similar scenario has returned to that prior to June 2020 before the now repealed Rental Law came into force (Illustrative Image Infobae)
Balayan commented: “Following the DNU, some CPI-adjusted rents in 2024 exceeded market prices, prompting renegotiations.”
Rental contracts can now last for 24 months, also adapting to the needs of students and temporary workers.
Braña stressed: “We are returning to the pre-2020 dynamic, allowing rent updates and early termination clauses, which give the owner the option to terminate the contract with 90 days’ notice and compensation to the tenant if they need to sell.”
www.buysellba.com
Source:
Una vivienda en CABA tarda cerca de 45 días en alquilarse, frente a las 72 horas del año pasado: cuáles son los valores promedio
Con el DNU del gobierno, la oferta se expandió en casi todos los barrios porteños, pero los montos solicitados son un obstáculo e impiden que la demanda convalide rápidamente los precios pedidos por las nuevas unidades
www.infobae.com
September 08, 2024
With the government's DNU, the offer expanded in almost all neighborhoods of Buenos Aires, but the amounts requested are an obstacle and prevent the demand from quickly validating the prices requested by the new units.
By Jose Luis Cieri
Before the DNU, high demand allowed many properties to be rented without even being published, with long waiting lists and reservations that were made within the first 48 to 72 hours of their offer (Illustrative Image Infobae)
Currently, the rental process has experienced a considerable slowdown compared to the crisis context of last year. The real estate market outlook in the Autonomous City of Buenos Aires (CABA) has substantially extended the time to rent properties after the repeal of the Rental Law through the Government's DNU.
Until the end of the year, in a context of unprecedented shortage of properties in traditional rentals in the last 50 years (mainly due to the rejection of the owners to the repealed regulations), the rental market was dominated by offers in dollars. The few homes that were offered in pesos were rented in just 72 hours on average, sometimes without the tenants having seen them beforehand. There were few of them, and that is partly why they were rented so quickly.
Times have changed. Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, told Infobae: “In the last three months, a home can be rented in about 45 days, whereas last year, in many cases, they were rented without even being published.”
This change in times is due in part to the significant increase in supply and the high costs of expenses ( in CABA they average $188,919 per month ), added to prices that demand cannot pay.
Braña added that for properties with low expenses, the process can be faster, but in general, the time does not exceed more than two months. Another reason why properties take longer to rent is the greater demands of some owners.
“The lack of the necessary deposits to rent an apartment is another problem. Several owners require guarantees that are difficult to meet,” explained Oscar Puebla , architect and real estate expert.
Scenery
Following the DNU, the working methodology in the sector also changed in CABA.Soledad Balayan , a real estate market analyst at Maure Inmobiliaria , said that now “showing a property for rent is more work than before because more people visit it,” which reflects greater competition and analysis by interested parties. The expert highlighted a notable increase in demand during the last month, which facilitated the rapid absorption of the available supply.
The slowdown in inflation will probably reduce tenants' fear of adjusting to contracts indexed by the Consumer Price Index (CPI). "Agreements with the same characteristics as at the beginning of 2024 predominate, after the DNU came into force, with a duration of two years and with CPI adjustments every 3 or 4 months. In other cases, the Lease Contract Index (ICL) is used," said Balayan.
Values
According to Real Estate Report, the average value of 1-bedroom apartments in CABA in August 2024 was $439,629, while 2-bedroom units were priced above $588,808, prices that represent a challenge for those who must maintain their home.There is a noticeable decline in the rental capacity of families, as income did not grow at the pace necessary to cover not only rental costs but also other essential household expenses.
Currently, the real estate offer for rent in CABA is made up of 97% of apartments and the rest is divided between houses and PH
Braña pointed out a change in tenant preferences: “They are looking for properties like PHs or houses, but unfortunately, this is a type of housing that is becoming extinct. Today, 97% of the offer is apartments in buildings. Those interested try to avoid high expenses, and when units appear whose expenses do not exceed 10-15% of the rent, they are quickly rented.”
Since the end of the year, the supply of rental properties has climbed by almost 200% in CABA , resulting in lower prices compared to those at the beginning of 2024. Tenants who signed contracts in December, with adjustments based on the CPI, now face higher rents than current market prices. This change is due in part to the greater availability of properties, adjusting prices downwards.
Puebla explained: “Currently, there is a growing demand for larger apartments, suitable for families, with one or two bedrooms. The most sought-after ones are located near means of transport such as subway stations and metrobus stops.”
As for rental contracts, in some cases "dollar adjustments or variable rates are also used depending on the market situation," he added.
Rental prices, in nominal terms, did not increase significantly; in fact, reports indicate falls in real terms, below the rate of inflation.
Real Estate Report confirmed that during the period from July 2023 to July 2024, inflation reached 285.9%; in contrast, rents for standard quality used apartments increased by 184.25% for two-room units and 174.28% for three-room units.
Now, tenants will see the property before renting, given that there is a greater supply available. A similar scenario has returned to that prior to June 2020 before the now repealed Rental Law came into force (Illustrative Image Infobae)
Balayan commented: “Following the DNU, some CPI-adjusted rents in 2024 exceeded market prices, prompting renegotiations.”
Preferences
Two-room apartments, especially those larger than 35/40 m2 and with good lighting and a balcony, are in high demand.Rental contracts can now last for 24 months, also adapting to the needs of students and temporary workers.
Braña stressed: “We are returning to the pre-2020 dynamic, allowing rent updates and early termination clauses, which give the owner the option to terminate the contract with 90 days’ notice and compensation to the tenant if they need to sell.”
www.buysellba.com
