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Buenos Aires real estate market: Due to the reactivation of rents, the supply of apartments for sale was reduced - Infobae
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Mercado inmobiliario porteño: por la reactivación de los alquileres se redujo la oferta de departamentos a la venta
Cientos de propietarios decidieron reintegrar su unidad al mercado de locaciones después del DNU que derogó la ley anterior
www.infobae.com
January 24, 2024
Hundreds of owners decided to reintegrate their unit into the rental market after the DNU that repealed the previous law
By José Luis Cieri
Experts maintain that the buying and selling sector maintains its dynamism in the city of Buenos Aires and the oversupply of apartments on the market has decreased (Photo: Getty)
In the first four weeks of 2024, the real estate buying and selling market in the city of Buenos Aires shows encouraging signs, defying the seasonal decline in activity and macroeconomic volatility. This period confirms a rebound in demand, both in the segment of low-cost properties, which boosted the market last year, and in those properties with values over $200,000.
Another significant fact is the notable reduction in the supply of properties for sale in CABA, currently with more than 73,000 apartments, compared to the more than 80,000 existing just over a month ago.
It is estimated that this 10% decrease is attributed to more than 7,000 properties that are returning to the rental market, following the repeal of the Rental Law through the DNU promoted by the Government.
Fabián Achával , from Fabián Achával Propiedades and who runs Real Estate Radar, highlighted to Infobae that “the first weeks of the year registered a notable increase in inquiries and visits, generating optimism in the segment. “This behavior is particularly encouraging considering the traditional decline in activity during this period.”
The expert considered that at the beginning of 2024, an increase in queries through real estate portals was observed compared to the average of the months of January in previous years, at least since 2019.
“This increase is mainly attributed to buyers who express a clear intention to make significant changes. They are looking to sell their current property to acquire a new property, generating an active dynamic,” explained Adrián Cyderboim from Crecer Inmobiliaria.
Prices
Real estate agencies maintain last year's recommendation: property prices are at historically low levels, offering various purchasing opportunities. Apartments under USD 55,000 or USD 70,000, which were previously not on the market, now present affordable opportunities.Currently, end users perceive the possibility of making changes, selling at current market values and purchasing simultaneously under the same conditions.
Cyderboim said that “investors are making purchase decisions as they observe that they are purchasing at values below historical values in the sector, supported by the expectation of a price increase in the medium term.”
The fall in prices stopped “nominally” in 2023 compared to 2022. It is likely to end with a minimal increase. “It seems therefore that prices in the used residential sector have reached a floor. Price dynamics in 2024 will depend on how successful the government is in stabilizing prices and the macroeconomy. In that sense we maintain an expectant and prudent posture,” said Achával.
Currently in Colegiales or Villa Urquiza, a used two-room apartment ranges from USD 85,000 to USD 150,000 depending on the square meters and the category of the property. And on the same basis, the 2 brand new rooms mostly start at USD 100,000 and up.
Two-room apartments with balconies are among the most sought after in the buying and selling market.
Cyderboim noted: “Those with 3 rooms start at USD 110,000 and USD 115,000 for older ones and around USD 160,000 and up for the newest ones and with some other attribute or characteristics.”
In Mataderos, Liniers, San Telmo, Barracas, even in Palermo, there are two-room units for less than USD 85,000, values that are similar to those of 2011.
Another Whitewash
The Omnibus Law project being discussed in Congress has within its articles a new money laundering that would allow the acquisition of real estate.“This includes for now that the rate will be 0% for capitals less than USD 100,000, encouraging demand in this range. For higher amounts, the rate varies from 5% to 15% depending on the moment of adhesion to the bleaching. This new possibility could boost the purchase, especially in properties with tickets less than USD 100,000,” said Achával.
Developers and builders maintain the expectation that the government will enable money laundering at no cost for any investment in construction, eliminating the amount limit established at USD 100,000 until the project is contemplated.
Developers and builders ask to expand money laundering so that this tool also allows the purchase of homes under construction and for a value greater than $100,000
Damián Tabakman , president of the Business Chamber of Urban Developers, commented that “in the Omnibus Law the possibility of laundering without limit of amount is already enabled for the construction sector, although it is not explicitly proposed for investments.”
However, he pointed out that the entity is in contact with the Government and seeks to have this provision clearly established in the regulations to further promote development, also benefiting the housing construction sector.
Tabakman also addressed the issue of prices in the sector. “ With rising costs, the market is at an inflection point and it is necessary to recognize that prices must adjust dynamically. “Given the rise in construction costs, we can no longer talk about maintaining current price levels. "The market will have to be educated so that it understands and accepts that, with the new costs, prices must adapt upwards.
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