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Is it worth investing in garages in CABA again?: Everything you need to know about costs and profitability - Infobae
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¿Otra vez conviene invertir en cocheras en CABA?: todo lo que hay que saber sobre costos y rentabilidad
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www.infobae.com
March 8, 2024
With the constant increase in vehicles, the supply of buildings with parking spaces attracts demand. Investors backed by dollars find investments in garages an attractive option
By José Luis Cieri
Acquiring garages is profitable according to experts, there are more and more vehicles and fewer spaces to store the car because hundreds of garages were demolished to make way for residential or office buildings in CABA.
In the scenario of high inflation in Argentina ( it accumulated 254.2% during the last year, according to Indec and the February figure will be published next week ), small and medium savers with dollars in hand find investment in Real attractive. Estate, particularly through the acquisition of garages.
This modality is presented as a way to safeguard the value of your savings in square meters, with low-cost investments and a stable monthly income.
Parking spaces are beginning to attract attention again, responding to a growing demand in various neighborhoods of the city of Buenos Aires. In a market characterized by depressed real estate prices, the purchase of garages stands as a strategic option for those investors seeking to protect their funds.
Esteban Sucari , from Ecocheras, told Infobae that “the sales market is experiencing a reactivation. After the pandemic, in general terms (with the exception of certain niche areas), prices had registered a drop and transactions were not being validated. In the last two years, numerous sales operations were carried out, but at levels much lower than pre-pandemic. That pattern is beginning to reverse. The combination of high inflation and the depreciation of the dollar is leading those who own this currency to perceive a decrease in their purchasing capacity.”
“These levels are unsustainable and are projected to lead to an increase in dollar prices,” Sucari said.
It should be noted that these dynamics affect both brand new and used garages. Those that are under construction or brand new are the first to experience price increases, as real estate developers get ahead of themselves with the evaluation of the cost/price ratio.
Sucari added: “But then the owners of used garages are the ones who, upon observing these increases, continue the trend and take advantage of these increases to also raise the value of their garages.”
Expenses were not exempt from inflation. Today an average expense is around $10,000 per month. The usual thing, according to uses and customs, is that the expenses are paid by the owner of the garage.
In the case of brand new units, the sale is usually largely complemented by properties in the same building. This synergy between the sale of garages and residential units is a common practice in real estate developments.
“In contrast, in the case of used garages, independent buildings intended exclusively for this purpose experience less activity. This is due, in large part, to the high expenses associated with such buildings, which often require considerable staff for their care and maintenance,” said Diego Migliorisi, of Migliorisi Properties.
Choose well, areas and advantages
Considered as a form of real estate savings for future expansions, investment in real estate, although it presents a relatively low profitability compared to other business options, finds its key in choosing areas with growth potential.Migliorisi expanded: “The main gain focuses on the appreciation of the value of the property over time.”
The advantages of buying a garage are the following:
- Due to their ticket, they are the gateway to the real estate market (a sector that today foresees a price recovery).
- They have little maintenance, there is nothing that can break, there are no eviction lawsuits.
- If you need money, it is more practical to sell a garage than an entire apartment.
- Currently, numerous garage owners are selling their spaces for several million pesos with the aim of making way for the construction of new buildings on those lands. This trend is causing a growing shortage of garages, which in the long term will result in a significant increase in their value.
Sucari advised: “It is a good opportunity to buy a garage near a garage that is already known to be closing. Every time one closes, demand skyrockets and, therefore, prices in its surroundings.”
The greatest preference is concentrated in the northern Buenos Aires corridor, where hundreds of garages were transformed into residential or office buildings.
In several projects in the northern corridor of CABA or like this one in the image located in Villa Devoto, a good space is privileged for owners or tenants to store their vehicles.
“And as a result of this, there is less supply and more request. The same thing happens in Caballito. In neighborhoods such as Villa Crespo, Almagro, Paternal, Chacarita, among others, there is greater availability,” Migliorisi added.
In the case of Palermo the shortage of garages is evident. In Nuñez, the supply is quite limited compared to the growing demand and purchasing power of the area. While in Caballito and Belgrano there is a considerable presence of garages, they are still insufficient to satisfy orders.
“We should ask ourselves in which neighborhood there are more garages in relation to their demand. Currently, the Microcentro stands out as one of the areas with the greatest availability of garages, although paradoxically, the demand in this area is not so pronounced, and it is not so advisable to invest there to buy them,” said Sucari.
Profitability and sales and rental prices
The prices of used garages for sale generally range between USD 15,000 and USD 25,000, while brand new garages are in a range of USD 20,000 to USD 35,000, varying depending on the neighborhood. Unless these are exceptional cases in premium areas, where values can reach USD 50,000 or even more.
Used garages range between USD 15,000 and USD 25,000 for sale
According to Sucari, the profitability of garages is usually considerable, ranging between 4% and 7% annually in dollars.
Rents vary significantly depending on location, demand and purchasing power of the area. On average, they are between $40,000 and $100,000 per month, although in Premium areas with high demand and purchasing power, they can reach up to $150,000 per month.
Migliorisi concluded that the owner of the garage is responsible for covering the expenses. In unattended garages (with remote control), these can range between $10,000 and $15,000 per month. On the other hand, those with custodial service (employed 24 hours a day) have costs ranging from $25,000 to $40,000, depending on the specific characteristics of the building and administration expenses.”
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