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Never seen: the few traditional rentals that there are in pesos already cost the same as the temporary ones that are dollarized - Infobae
Source:
www.infobae.com
September 15, 2023
By José Luis Cieri
View from a tower in Artigas at 3000, in Villa del Parque. In this neighborhood today there are only 16 two-room apartments for rent (Photo Courtesy: San Román Propiedades)
Access to housing in Argentina deepened prolonged problems that have been strengthened since the 2020 Rental Law came into force, currently under review in the Senate. Next week, reforms to two controversial articles will be debated: the duration of contracts and the adjustment method. Meanwhile, the shortage of supply in the City of Buenos Aires intensifies and prices experienced a significant increase.
In certain neighborhoods, a three-bedroom apartment can cost up to $400,000 per month, equivalent to USD 547, according to the free quote.
Currently, there are less than 400 apartments available in pesos through real estate agencies in different neighborhoods, while in dollars and under temporary agreements, there are more than 2,500 units with prices ranging between USD 450 and USD 550 per month. This situation is easily verifiable in specialized property search engines.
The current one led to almost complete parity in rental values 38 months after its entry into force. It is something that has never been seen in the industry.
Román Andrés Paikin , from San Román Properties, commented to Infobae : “While legislators debate possible modifications to the current law, owners, tenants and real estate brokers find ourselves in limbo. Various factors, such as the high level of inflation, general uncertainty, the lack of clear rules, low profitability for owners and growing state interventionism, have contributed to an unprecedented shortage of rental supply.”
In different Buenos Aires neighborhoods there are less than 400 apartments for rent in pesos and by real estate agencies
“But those with 1 bedroom are one step higher than the others because they are sought after by a younger audience, such as teenagers or couples moving into their first home. Given the lack of access to bank credit, they opt for rent, which makes one-bedroom homes especially sought after,” Ariel Erice , from Naccarato Properties, told Infobae .
Despite the high prices, 2 bedroom apartments are currently rarer than 1 bedroom apartments in the Buenos Aires market.
Matías Vinelli , from Vinelli Inmobiliaria, explained to Infobae : “In the last two decades, mainly studio apartments and 1 bedroom apartments have been built, financed by private investors through ventures at cost. However, the large housing deficit is focused on 3- and 4-bedroom homes, which are difficult to obtain without access to mortgage credit.”
The increases in rents significantly exceed the ICL, which registered 112% in September. Both in new agreements and extensions, the increases range between 150% and 160% year-on-year.
Paikin explained that two- and three-bedroom apartments have experienced a price increase for two main reasons. “First of all, inflationary expectations: according to the current Rental Law, the rental price must remain fixed for 12 months, an unrealistic stability in the current economic context. Secondly, the law of supply and demand: the shortage of supply has led to an increase in rental prices, making what seems expensive today, no longer so in a few months.”
In Liniers, prices for a three-bedroom apartment start at $250,000 per month. Erice pointed out that owners, faced with contracts that are about to end, “opt for six-month extensions instead of new three-year agreements, pending clearer legislation.”
The contracts are being extended at intervals varying between three months, six months and one year at most. The profile of those looking for two- and three-bedroom apartments varies between 25 and 45 years old, including students, couples without children and families with up to two children.
Vinelli commented that "although tenants have little room for negotiation due to the lack of supply, the owners are aware of the situation and seek to reach agreements."
In Monserrat, prices for a two-room apartment start at $160,000, while for a three-room apartment, the initial cost is $270,000 per month.
In Villa del Parque, there are only 16 apartments in pesos today, and they are worth between $160,000 and $230,000 per month.
Palermo leads the quotes, there are 3 rooms that go up to $400,000, with more than 80 square meters and a balcony. In Núñez, the few existing 3 rooms cost between $330,000 and $390,000 per month.
“As real estate brokers, we look for a dynamic rental market, with sufficient supply to satisfy demand, and beneficial contracts for both parties. In the current situation, we see that both landlords, tenants and we are facing difficulties. Our goal is that no party is harmed, and that we can find equitable solutions for all,” Paikin concluded.
www.buysellba.com
Source:
Nunca visto: los pocos alquileres tradicionales que hay en pesos ya cuesta lo mismo que los temporarios que están dolarizados
La escasez de oferta se agudiza en CABA, donde los precios para departamentos de 3 ambientes alcanzan hasta $400.000, equivalentes a casi USD 550 mensuales. El Senado trataría la próxima semana dos dictámenes que reformarían artículos de la ley
www.infobae.com
September 15, 2023
By José Luis Cieri
View from a tower in Artigas at 3000, in Villa del Parque. In this neighborhood today there are only 16 two-room apartments for rent (Photo Courtesy: San Román Propiedades)
Access to housing in Argentina deepened prolonged problems that have been strengthened since the 2020 Rental Law came into force, currently under review in the Senate. Next week, reforms to two controversial articles will be debated: the duration of contracts and the adjustment method. Meanwhile, the shortage of supply in the City of Buenos Aires intensifies and prices experienced a significant increase.
In certain neighborhoods, a three-bedroom apartment can cost up to $400,000 per month, equivalent to USD 547, according to the free quote.
Currently, there are less than 400 apartments available in pesos through real estate agencies in different neighborhoods, while in dollars and under temporary agreements, there are more than 2,500 units with prices ranging between USD 450 and USD 550 per month. This situation is easily verifiable in specialized property search engines.
The current one led to almost complete parity in rental values 38 months after its entry into force. It is something that has never been seen in the industry.
Román Andrés Paikin , from San Román Properties, commented to Infobae : “While legislators debate possible modifications to the current law, owners, tenants and real estate brokers find ourselves in limbo. Various factors, such as the high level of inflation, general uncertainty, the lack of clear rules, low profitability for owners and growing state interventionism, have contributed to an unprecedented shortage of rental supply.”
In the sector they do not fail to point out that the current law, which is still in force (three-year contracts and interannual adjustments through the Index of Lease Contracts, ICL) and which sought to protect tenants with various regulations, has ended up harming them. . This situation also negatively affected property owners and real estate brokers.
Uncontrolled increases
In the CABA neighborhoods the values of all types of apartments rose. From studio apartments to 4 bedrooms.
In different Buenos Aires neighborhoods there are less than 400 apartments for rent in pesos and by real estate agencies
“But those with 1 bedroom are one step higher than the others because they are sought after by a younger audience, such as teenagers or couples moving into their first home. Given the lack of access to bank credit, they opt for rent, which makes one-bedroom homes especially sought after,” Ariel Erice , from Naccarato Properties, told Infobae .
Despite the high prices, 2 bedroom apartments are currently rarer than 1 bedroom apartments in the Buenos Aires market.
Matías Vinelli , from Vinelli Inmobiliaria, explained to Infobae : “In the last two decades, mainly studio apartments and 1 bedroom apartments have been built, financed by private investors through ventures at cost. However, the large housing deficit is focused on 3- and 4-bedroom homes, which are difficult to obtain without access to mortgage credit.”
The increases in rents significantly exceed the ICL, which registered 112% in September. Both in new agreements and extensions, the increases range between 150% and 160% year-on-year.
Paikin explained that two- and three-bedroom apartments have experienced a price increase for two main reasons. “First of all, inflationary expectations: according to the current Rental Law, the rental price must remain fixed for 12 months, an unrealistic stability in the current economic context. Secondly, the law of supply and demand: the shortage of supply has led to an increase in rental prices, making what seems expensive today, no longer so in a few months.”
Values and demand
In Liniers, prices for a three-bedroom apartment start at $250,000 per month. Erice pointed out that owners, faced with contracts that are about to end, “opt for six-month extensions instead of new three-year agreements, pending clearer legislation.”
The contracts are being extended at intervals varying between three months, six months and one year at most. The profile of those looking for two- and three-bedroom apartments varies between 25 and 45 years old, including students, couples without children and families with up to two children.
Vinelli commented that "although tenants have little room for negotiation due to the lack of supply, the owners are aware of the situation and seek to reach agreements."
In Monserrat, prices for a two-room apartment start at $160,000, while for a three-room apartment, the initial cost is $270,000 per month.
In Villa del Parque, there are only 16 apartments in pesos today, and they are worth between $160,000 and $230,000 per month.
Palermo leads the quotes, there are 3 rooms that go up to $400,000, with more than 80 square meters and a balcony. In Núñez, the few existing 3 rooms cost between $330,000 and $390,000 per month.
“As real estate brokers, we look for a dynamic rental market, with sufficient supply to satisfy demand, and beneficial contracts for both parties. In the current situation, we see that both landlords, tenants and we are facing difficulties. Our goal is that no party is harmed, and that we can find equitable solutions for all,” Paikin concluded.
www.buysellba.com
