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One-bedroom apartments rose almost 30% in just one month - Infobae
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www.infobae.com
September 27, 2023
Rental prices for one-bedroom apartments rose almost 30% in a single month. Although they are found in CABA, they are among the most expensive in the city.
The half-sanction that Deputies approved for the reform of the Rental Law increased the uncertainty of the real estate market and generated a pause in the closing of contracts pending further definitions on the contractual conditions that will govern in the event that the regulations are reformulated. current (still in force and is now under review in the Senate).
This situation plus the inflationary process led to rental prices in the city of Buenos Aires skyrocketing in a single month. The average price of one-bedroom apartments is $220,000 and a decrease is not expected in the short term due to the shortage of supply. This was confirmed by a survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO) that analyzes the fluctuations in values month by month in CABA.
The median of the studio apartments offered is $170,000 (up 21.4%) and those with two-bedrooms rose to $270,000, up 12.5% in September. The entity that carried out the investigation clarified that the work is based on the number of rooms or number of square meters of the property.
Emilio Fauro , from Fauro Propiedades, told Infobae that although it is more accessible to find one-bedroom apartments in the city, many owners have withdrawn their properties from the market due to uncertainty. “The lack of clarity in the message from Congress and the delay in legislative decisions make it difficult to achieve long-term agreements under current law,” he said.
Lisandro Cuello, from the homonymous real estate company, explained to Infobae that the owners apply an increase of more than 160% year-on-year in three-year agreements. This is because the owners fear that the value of the contract will depreciate in the third month and that, by updating its value in 12 months, they will end up losing to inflation. That's why the starting point is very high."
From the real estate sector they indicate that, given the uncertainty generated by the possible reform of the rental law, owners prefer to extend current contracts that are about to expire, applying bimonthly increases in the price until the legislative situation is resolved.
“In the context of an inflationary economy after the devaluation, the effects on prices are notable for tenants. “Landlords are increasing the requirements for tenant profiles, and we act as intermediaries to find a middle ground,” said Fauro.
Although renting can involve problems when it comes to obtaining guarantees or paying commissions, the cost of renting is the first and, in many cases, the biggest barrier to entry.
Being able to rent a home under the current law for three years and year-on-year adjustment is almost impossible in CABA
In CABA, high prices prevent a large part of the population from renting even an average studio apartment, “pushing them towards areas with lower quality infrastructure and services,” the CESO stated.
Expenses also influence monthly costs, since currently there are no amounts that are less than $25,000: this factor additionally contributes to the expenses associated with the maintenance of the home.
The trend of offering rentals in dollars persists in numerous Buenos Aires neighborhoods. According to estimates, proposals in this currency constitute approximately 67% of the total offer in the city.
“The rental market in Argentina is shrinking. Owners' resistance to three-year contracts under current regulations has led to an increase in contracts in dollars and with shorter durations, up to twelve months. Given the scarcity of options, many tenants end up accepting these conditions, especially those who have the economic capacity to do so,” Cuello concluded.
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Source:
Los que más aumentaron: los departamentos de dos ambientes subieron casi 30% sólo en un mes
Un estudio que analiza las fluctuaciones en los valores de alquiler en la ciudad de Buenos Aires reveló también un incremento del 12,5% en las viviendas de tres ambientes
www.infobae.com
September 27, 2023
Those that increased the most: one-bedroom apartments rose almost 30% in just one month
Rental prices for one-bedroom apartments rose almost 30% in a single month. Although they are found in CABA, they are among the most expensive in the city.
The half-sanction that Deputies approved for the reform of the Rental Law increased the uncertainty of the real estate market and generated a pause in the closing of contracts pending further definitions on the contractual conditions that will govern in the event that the regulations are reformulated. current (still in force and is now under review in the Senate).
This situation plus the inflationary process led to rental prices in the city of Buenos Aires skyrocketing in a single month. The average price of one-bedroom apartments is $220,000 and a decrease is not expected in the short term due to the shortage of supply. This was confirmed by a survey by the Scalabrini Ortiz Center for Economic and Social Studies (CESO) that analyzes the fluctuations in values month by month in CABA.
The median of the studio apartments offered is $170,000 (up 21.4%) and those with two-bedrooms rose to $270,000, up 12.5% in September. The entity that carried out the investigation clarified that the work is based on the number of rooms or number of square meters of the property.
Emilio Fauro , from Fauro Propiedades, told Infobae that although it is more accessible to find one-bedroom apartments in the city, many owners have withdrawn their properties from the market due to uncertainty. “The lack of clarity in the message from Congress and the delay in legislative decisions make it difficult to achieve long-term agreements under current law,” he said.
Year-on-year increases
From the study center it was reported that in the last twelve months, the offer price of a studio apartment in CABA registered an increase of 209.1%; In the case of one-bedroom apartments, the increase was 238.5, while in two-bedroom apartments the increase reached 200% year-on-year. On the other hand, the inflation data for August showed a year-on-year increase of 124.4%, according to the Consumer Price Index (CPI) of Indec.Lisandro Cuello, from the homonymous real estate company, explained to Infobae that the owners apply an increase of more than 160% year-on-year in three-year agreements. This is because the owners fear that the value of the contract will depreciate in the third month and that, by updating its value in 12 months, they will end up losing to inflation. That's why the starting point is very high."
From the real estate sector they indicate that, given the uncertainty generated by the possible reform of the rental law, owners prefer to extend current contracts that are about to expire, applying bimonthly increases in the price until the legislative situation is resolved.
“In the context of an inflationary economy after the devaluation, the effects on prices are notable for tenants. “Landlords are increasing the requirements for tenant profiles, and we act as intermediaries to find a middle ground,” said Fauro.
Problems entering and dollarized values
Although renting can involve problems when it comes to obtaining guarantees or paying commissions, the cost of renting is the first and, in many cases, the biggest barrier to entry.
Being able to rent a home under the current law for three years and year-on-year adjustment is almost impossible in CABA
In CABA, high prices prevent a large part of the population from renting even an average studio apartment, “pushing them towards areas with lower quality infrastructure and services,” the CESO stated.
Expenses also influence monthly costs, since currently there are no amounts that are less than $25,000: this factor additionally contributes to the expenses associated with the maintenance of the home.
The trend of offering rentals in dollars persists in numerous Buenos Aires neighborhoods. According to estimates, proposals in this currency constitute approximately 67% of the total offer in the city.
“The rental market in Argentina is shrinking. Owners' resistance to three-year contracts under current regulations has led to an increase in contracts in dollars and with shorter durations, up to twelve months. Given the scarcity of options, many tenants end up accepting these conditions, especially those who have the economic capacity to do so,” Cuello concluded.
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