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Almost zero offers: For every 1,000 published only 6 are rented - Infobae
Source:
www.infobae.com
September 06, 2023
By: Jose Luis Cieri
Since the Rental Law was sanctioned and entered into force, in July 2020, the offer has fallen to minimum levels and prices have not stopped rising.
Only in the City of Buenos Aires is the housing shortage accentuated when compared to 5 years ago (before the current regulations that are now under review in the National Senate came into effect).
In 2018, in the City of Buenos Aires, of 1,000 properties that were published, some 144 (14.4%) were for rent and 856 (85.6%) for sale. Currently, only 6, 0.6%, are for rent.
This was confirmed to Infobae by a new analysis of the Real Estate Market Observatory of the Buenos Aires Professional Real Estate Association (CPI).
“These numbers show the reality of the state that the current Law brought to the market. From the school we always warned that the loss of the stock (which continues to deepen month by month) was the logical consequence of the norm, a situation that worsened along with the serious economic context. And, if there is no urgent solution regarding the modification of the law, we are heading towards a reality in which the percentage of rental homes is literally zero," Marta Liotto , president of the Buenos Aires CPI, told Infobae .
Alejandro Braña , a segment analyst and member of the CPI, recalled that “until the enactment of the law, rents followed inflation and even staggered below it. In 2019, for example, the last year in which rents were governed by the regulations of the Civil and Commercial Code of the Nation, they rose 30% per year (in some cases it was doubled by 15% every six months and in others it was applied directly on 30 % annual), when inflation in the last year of Mauricio Macri's government had already reached 55% year-on-year”.
Since mid-2020, the curve has not stopped and a historical peak in values is observed.
“It gives chills to compare the rental values between 2018 and 2023. We took a used 40 m2 2-room apartment in a middle area of CABA, such as the Almagro neighborhood. In 2018, that apartment had a rental value of $9,000 per month, while today it can reach $200,000,” added Braña.
Source: Real Estate Market Observatory of the Buenos Aires Professional Real Estate Association (CPI)
In Puerto Madero, in the Torres del Yacht complex, a 2-room apartment with a garage was rented in August 2022 for $150,000, which at that time represented about USD 530. One year later, the value of a new contract was made at USD 850 ( $476,000) per month. Here there is a rise of 217% in pesos in one year and 60% in dollars.
On Bahía Blanca and Avenida Álvarez Jonte, a 2-bedroom apartment with a balcony was rented in August 2022 for $60,000 per month. The tenant terminated the lease after 11 months because the multinational company he works for sent him to Berlin, Germany. It was re-leased last August for $160,000 to a new tenant, representing a value adjustment of just under 167% year-over-year.
A 3-room apartment on Avenida Triunvirato and La Pampa, in Villa Urquiza, was rented in October 2022 for $80,000; The tenants terminated the contract after 6 months and it was rented again as of May 2023 at $129,000, a 61% adjustment in just 7 months due to a change of tenant.
“The only possible solution is to generate a supply shock in the market, and that will only be possible if the changes in the norm are made, which are those that are embodied in the project that received partial sanction from the Chamber of Deputies: the return to two-year contracts and the possibility of an agreement between the parties to determine the terms and ways of updating the value, as well as the implementation of fiscal and tax benefits for owners who put their units for rent, "he concluded. Liotto.
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Source:
Oferta casi nula: de cada 1.000 avisos que se publican en CABA, sólo 6 son propiedades que se alquilan
Análisis privado detectó cómo disminuyó la oferta al comparar con épocas de pre ley. Hace 5 años y sobre 1.000 viviendas que se ofrecían en el mercado inmobiliario, en alquiler había 144 contra 856 en venta. La escasez se agudizó además de los fuertes aumentos
www.infobae.com
September 06, 2023
Private analysis detected how the offer decreased when compared to pre-law times. 5 years ago and over 1,000 homes that were offered in the real estate market, there were 144 for rent against 856 for sale. The shortage worsened in addition to the strong increases
By: Jose Luis Cieri
Since the Rental Law was sanctioned and entered into force, in July 2020, the offer has fallen to minimum levels and prices have not stopped rising.
Only in the City of Buenos Aires is the housing shortage accentuated when compared to 5 years ago (before the current regulations that are now under review in the National Senate came into effect).
In 2018, in the City of Buenos Aires, of 1,000 properties that were published, some 144 (14.4%) were for rent and 856 (85.6%) for sale. Currently, only 6, 0.6%, are for rent.
This was confirmed to Infobae by a new analysis of the Real Estate Market Observatory of the Buenos Aires Professional Real Estate Association (CPI).
“These numbers show the reality of the state that the current Law brought to the market. From the school we always warned that the loss of the stock (which continues to deepen month by month) was the logical consequence of the norm, a situation that worsened along with the serious economic context. And, if there is no urgent solution regarding the modification of the law, we are heading towards a reality in which the percentage of rental homes is literally zero," Marta Liotto , president of the Buenos Aires CPI, told Infobae .
The price problem
The report also confirmed the sharp increase in values of late.Alejandro Braña , a segment analyst and member of the CPI, recalled that “until the enactment of the law, rents followed inflation and even staggered below it. In 2019, for example, the last year in which rents were governed by the regulations of the Civil and Commercial Code of the Nation, they rose 30% per year (in some cases it was doubled by 15% every six months and in others it was applied directly on 30 % annual), when inflation in the last year of Mauricio Macri's government had already reached 55% year-on-year”.
Since mid-2020, the curve has not stopped and a historical peak in values is observed.
“It gives chills to compare the rental values between 2018 and 2023. We took a used 40 m2 2-room apartment in a middle area of CABA, such as the Almagro neighborhood. In 2018, that apartment had a rental value of $9,000 per month, while today it can reach $200,000,” added Braña.
Other examples
In Villa Lugano, in the Cardenal Samoré neighborhood, a 3-room apartment with a balcony was recently renegotiated. It had been rented 3 years ago, in August 2020, for $17,000 and this week a new contract was signed for $130,000. "That rent was multiplied by 8 in 36 months, accumulating a rise of 665%," explained Braña.
Source: Real Estate Market Observatory of the Buenos Aires Professional Real Estate Association (CPI)
In Puerto Madero, in the Torres del Yacht complex, a 2-room apartment with a garage was rented in August 2022 for $150,000, which at that time represented about USD 530. One year later, the value of a new contract was made at USD 850 ( $476,000) per month. Here there is a rise of 217% in pesos in one year and 60% in dollars.
On Bahía Blanca and Avenida Álvarez Jonte, a 2-bedroom apartment with a balcony was rented in August 2022 for $60,000 per month. The tenant terminated the lease after 11 months because the multinational company he works for sent him to Berlin, Germany. It was re-leased last August for $160,000 to a new tenant, representing a value adjustment of just under 167% year-over-year.
A 3-room apartment on Avenida Triunvirato and La Pampa, in Villa Urquiza, was rented in October 2022 for $80,000; The tenants terminated the contract after 6 months and it was rented again as of May 2023 at $129,000, a 61% adjustment in just 7 months due to a change of tenant.
While a 3-room house-type apartment in Villa Lugano, on the ground floor, without expenses, was rented for $40,000 in August 2021 and now last August, when the contract expired, a new one was made for $160,000 per month, so which, the value multiplied by 4 in 2 years suffering an adjustment of 300% in that period of 24 months.
Claims to the Senate
Faced with this scenario, the sector is complaining to the legislators because they maintain that they continue to fight without resolving anything in this situation, which clearly would not have existed if they had listened to the warnings from the real estate sector since the beginning of 2016.“The only possible solution is to generate a supply shock in the market, and that will only be possible if the changes in the norm are made, which are those that are embodied in the project that received partial sanction from the Chamber of Deputies: the return to two-year contracts and the possibility of an agreement between the parties to determine the terms and ways of updating the value, as well as the implementation of fiscal and tax benefits for owners who put their units for rent, "he concluded. Liotto.
www.buysellba.com
