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Opportunity for investors: these are the properties that are easiest to rent in the city - La Nación Propiedades
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www.lanacion.com.ar
September 27, 2023
A series of reports from the real estate sector can bring buyers closer to knowing what tenants demand today in terms of typologies, location and age.
A series of reports can bring buyers closer to knowing what tenants demand today in terms of typologies, location and age
For those looking for a monthly income, purchasing rental properties is a historically recognized activity. Although yields are not at their historical highs, the distortion that the rental market is experiencing today means that the few units that remain available are offered at exorbitant prices and even in dollars.
“According to the Real Estate Operations Survey (ROI), in the first quarter of the year 13.7% of buyers fit the figure of the investor,” indicates Soledad Balayan, owner of Maure Inmobiliaria. The figure of the buyer that disappeared since the pandemic, partly as a result of the low returns that reached a floor of 2.04% gross annual in the city of Buenos Aires, is slowly beginning to resurface. In May, the rent/price ratio rose to 4.81% gross annual rate, considering an intermediate dollar between the official and the MEP for the purchase of the property.
“In total, almost 12 million properties are seen per month, 17% more than the previous month and a 15% year-on-year increase. For example, an apartment for sale in Palermo published on Zonaprop is seen on average 'in listing' 805 times per month, the listing is viewed 43 times and receives three queries," says Daniel Bryn, creator of the real estate monitor Invertire, adding that This is a “historic increase in searches,” which he believes “will impact future sales.”
Those who want to allocate these purchases to the rental business find themselves in a context where interest in leasing is strong. Within the AMBA, CABA is the area where queries from tenants to owners interested in finding out about the published property grew the most and it is the area in which there is the most demand for each published home, precisely 29% above the AMBA average. So much so that contacts have almost tripled in the last three years: today the capital rental notice is visited 2.7 times more than at the end of 2019, when the rental law was not yet in force, according to the Zonaprop survey.
To know which product to invest in, it is essential to know what consumers are looking for. A series of reports can bring buyers closer to knowing what tenants demand today in terms of typologies, location and age.
The capital rental notice is visited 2.7 times more than at the end of 2019, when the rental law was not yet in force, according to Zonaprop's survey.
Behind this fact lies another significant fact: the city is the area of the AMBA where studio apartments are most sought after and it is the typology that has the most demand pressure. In other words, demand exceeds the supply of studio units.
The investor interested in investing in units of this nature to satisfy the unmet demand in this typology faces average prices of US$85,900 in the city, according to the real estate monitor Invertire based on data published by Zonaprop. Meanwhile, the one-bedrooms average tickets of US$117,000, the two-bedrooms of US$164,000, the three-bedrooms of US$206,000 and the four-bedrooms of US$370,000.
The interest in this type of units is validated by the statements of the tenants surveyed by the City Housing Institute (IVC), which indicate that the average size of the rented home is 56 m² and 75% of the total Rented homes are between 31 and 75 m².
A large part of the properties published for sale in the city fall into this classification. “30% of the apartments (25,800 units) are one-bedrooms, 29% (25,400) are two-bedrooms and 18% (16,200) are studios,” says real estate monitor Invertire.
In the search universe, departments are king. 98% of the inquiries are to rent an apartment, versus 2% distributed between houses and PHs. However, the style of housing that attracts the most interest in living is the PHs. Advertisements for this type of housing are sought 2.7 times more than apartments and concentrate the strongest demand pressure among the typologies, probably because there are very few units offered on the market, according to Zonaprop.
The city is the AMBA area where studio apartments are most sought after.
The benefits of these homes are another factor that attracts demand, such as not paying bills for utilities (gas, electricity etc.) and living as if it were a house. If you want to buy one to rent, there are currently 10,300 units for sale, 8% less than a year ago, according to Invertire.
The fact that they are highly sought after for rent could explain why they are also the favorites for those interested in buying in the used market. In the second quarter of the year, units with these characteristics were the most consulted for sale and generated 38% of the searches. “Homes of this age represent the highest percentage of supply and therefore capture the highest percentage of demand,” explains Zonaprop. In a market with 127,000 properties for sale, 29% are used between 20 and 50 years old, according to Invertire. “The square meter used is US$2,024, well US$2,349 and brand new US$2,447, all of which remain stable,” adds the real estate monitor.
Units of this typology are the most sought after for rent and they add that “48% of the total (rental) contracts are directed to units over 25 years old in CABA.”
In the city, rental demand pressure is highest among 25- to 50-year-old units
In itself, in the city the ratio of demand to rental notices is greater than in other areas of Greater Buenos Aires. If we focus on searches by neighborhood, the most requested are Palermo (14%), Recoleta (11%) and Caballito (8%). However, the names change if the demand is combined in relation to the neighborhood's supply. “The highest number of searches in relation to available properties was in Coghlan and Parque Chas with 213% and 108% more than the average, while those that had the least pressure were Puerto Madero, Retiro and Palermo,” they analyze from the portal. real estate.
The Coghlan neighborhood is bordered by Saavedra to the north, Núñez to the east, Belgrano to the southeast and Villa Urquiza to the west.
A one-bedroom apartment in Coghlan rents for an average of $167,960 per month without counting expenses, and the value of the average square meter is US$2,391. One of the reasons why this area could occupy first place in this ranking is that it is one of the smallest neighborhoods in the city, with just 1.2 square kilometers of surface area.
“For tenants in the northern part of the city, the two main reasons had to do with changing location (23.7%) and the size, quality and/or amenities of the home (23.2%). For tenants in the central and southern areas, on the other hand, the main reason for moving was linked to the high cost of the previous home (22.1% and 22.9% respectively),” the entity warns.
For tenants in the northern part of the city, the two main reasons had to do with changing location (23.7%) and the size, quality and/or amenities of the home (23.2%), according to the IVC survey
This shortage led to various market deviations, including the publication of rents in dollars. “Since June 2020, when the rule came into effect, rental notices in dollars began to register a greater increase in demand pressure than notices in pesos. Since then, the demand pressure for ads in pesos increased 184% vs. 423% for ads in dollars,” the report states. This does not mean that tenants want to rent in dollars, but that - being subject to the limited supply of the market, 60% of which is published in dollars - they have no other alternative than to consult dollarized publications.
By Mercedes Soriano
www.buysellba.com
Source:
Propiedades: Cuáles son los departamentos que se alquilan más rápido y por qué
Una serie de informes del sector inmobiliario puede acercar a los compradores a conocer qué demandan hoy los inquilinos en términos de tipologías, ubicación y antigüedad
www.lanacion.com.ar
September 27, 2023
A series of reports from the real estate sector can bring buyers closer to knowing what tenants demand today in terms of typologies, location and age.
A series of reports can bring buyers closer to knowing what tenants demand today in terms of typologies, location and age
For those looking for a monthly income, purchasing rental properties is a historically recognized activity. Although yields are not at their historical highs, the distortion that the rental market is experiencing today means that the few units that remain available are offered at exorbitant prices and even in dollars.
“According to the Real Estate Operations Survey (ROI), in the first quarter of the year 13.7% of buyers fit the figure of the investor,” indicates Soledad Balayan, owner of Maure Inmobiliaria. The figure of the buyer that disappeared since the pandemic, partly as a result of the low returns that reached a floor of 2.04% gross annual in the city of Buenos Aires, is slowly beginning to resurface. In May, the rent/price ratio rose to 4.81% gross annual rate, considering an intermediate dollar between the official and the MEP for the purchase of the property.
“In total, almost 12 million properties are seen per month, 17% more than the previous month and a 15% year-on-year increase. For example, an apartment for sale in Palermo published on Zonaprop is seen on average 'in listing' 805 times per month, the listing is viewed 43 times and receives three queries," says Daniel Bryn, creator of the real estate monitor Invertire, adding that This is a “historic increase in searches,” which he believes “will impact future sales.”
Those who want to allocate these purchases to the rental business find themselves in a context where interest in leasing is strong. Within the AMBA, CABA is the area where queries from tenants to owners interested in finding out about the published property grew the most and it is the area in which there is the most demand for each published home, precisely 29% above the AMBA average. So much so that contacts have almost tripled in the last three years: today the capital rental notice is visited 2.7 times more than at the end of 2019, when the rental law was not yet in force, according to the Zonaprop survey.
To know which product to invest in, it is essential to know what consumers are looking for. A series of reports can bring buyers closer to knowing what tenants demand today in terms of typologies, location and age.
The capital rental notice is visited 2.7 times more than at the end of 2019, when the rental law was not yet in force, according to Zonaprop's survey.
The most chosen typology
According to a recent report by Zonaprop, rental demand predominates in small units in the city: 17% of people who want to rent an apartment look for studio apartments, 48% one-bedroom apartments, 24% two-bedroom apartments and 11% three-bedroom apartments.Behind this fact lies another significant fact: the city is the area of the AMBA where studio apartments are most sought after and it is the typology that has the most demand pressure. In other words, demand exceeds the supply of studio units.
The investor interested in investing in units of this nature to satisfy the unmet demand in this typology faces average prices of US$85,900 in the city, according to the real estate monitor Invertire based on data published by Zonaprop. Meanwhile, the one-bedrooms average tickets of US$117,000, the two-bedrooms of US$164,000, the three-bedrooms of US$206,000 and the four-bedrooms of US$370,000.
The interest in this type of units is validated by the statements of the tenants surveyed by the City Housing Institute (IVC), which indicate that the average size of the rented home is 56 m² and 75% of the total Rented homes are between 31 and 75 m².
A large part of the properties published for sale in the city fall into this classification. “30% of the apartments (25,800 units) are one-bedrooms, 29% (25,400) are two-bedrooms and 18% (16,200) are studios,” says real estate monitor Invertire.
In the search universe, departments are king. 98% of the inquiries are to rent an apartment, versus 2% distributed between houses and PHs. However, the style of housing that attracts the most interest in living is the PHs. Advertisements for this type of housing are sought 2.7 times more than apartments and concentrate the strongest demand pressure among the typologies, probably because there are very few units offered on the market, according to Zonaprop.
The city is the AMBA area where studio apartments are most sought after.
The benefits of these homes are another factor that attracts demand, such as not paying bills for utilities (gas, electricity etc.) and living as if it were a house. If you want to buy one to rent, there are currently 10,300 units for sale, 8% less than a year ago, according to Invertire.
The oldest are the most sought after
Age is another key factor that investors should consider. In the city, rental demand pressure is highest among 25- to 50-year-old units, according to Zonaprop . That is to say, the segment that has the most inquiries to rent in relation to the published offer is that built two to five decades ago, “despite the large stock,” according to the real estate portal.The fact that they are highly sought after for rent could explain why they are also the favorites for those interested in buying in the used market. In the second quarter of the year, units with these characteristics were the most consulted for sale and generated 38% of the searches. “Homes of this age represent the highest percentage of supply and therefore capture the highest percentage of demand,” explains Zonaprop. In a market with 127,000 properties for sale, 29% are used between 20 and 50 years old, according to Invertire. “The square meter used is US$2,024, well US$2,349 and brand new US$2,447, all of which remain stable,” adds the real estate monitor.
Units of this typology are the most sought after for rent and they add that “48% of the total (rental) contracts are directed to units over 25 years old in CABA.”
In the city, rental demand pressure is highest among 25- to 50-year-old units
Favorite locations
Added to the dimensions and age of the apartment is another key factor for those who want to buy a property and use it for rent. Location is another aspect that has a great impact on the rental value.In itself, in the city the ratio of demand to rental notices is greater than in other areas of Greater Buenos Aires. If we focus on searches by neighborhood, the most requested are Palermo (14%), Recoleta (11%) and Caballito (8%). However, the names change if the demand is combined in relation to the neighborhood's supply. “The highest number of searches in relation to available properties was in Coghlan and Parque Chas with 213% and 108% more than the average, while those that had the least pressure were Puerto Madero, Retiro and Palermo,” they analyze from the portal. real estate.
The Coghlan neighborhood is bordered by Saavedra to the north, Núñez to the east, Belgrano to the southeast and Villa Urquiza to the west.
A one-bedroom apartment in Coghlan rents for an average of $167,960 per month without counting expenses, and the value of the average square meter is US$2,391. One of the reasons why this area could occupy first place in this ranking is that it is one of the smallest neighborhoods in the city, with just 1.2 square kilometers of surface area.
Why do people move?
The IVC survey also delved into the reasons why tenants decide to move, an aspect that the investor can use as a tool to calculate how in demand their property would be.“For tenants in the northern part of the city, the two main reasons had to do with changing location (23.7%) and the size, quality and/or amenities of the home (23.2%). For tenants in the central and southern areas, on the other hand, the main reason for moving was linked to the high cost of the previous home (22.1% and 22.9% respectively),” the entity warns.
For tenants in the northern part of the city, the two main reasons had to do with changing location (23.7%) and the size, quality and/or amenities of the home (23.2%), according to the IVC survey
A dollarized market
The rental law was a low blow for the real estate market, which succumbed to the new conditions and withdrew a large part of the rental supply. Before the law there were 15,000 units published for permanent rental and today, they barely reach 1,300, according to recent data published by the Chamber of Owners last week.This shortage led to various market deviations, including the publication of rents in dollars. “Since June 2020, when the rule came into effect, rental notices in dollars began to register a greater increase in demand pressure than notices in pesos. Since then, the demand pressure for ads in pesos increased 184% vs. 423% for ads in dollars,” the report states. This does not mean that tenants want to rent in dollars, but that - being subject to the limited supply of the market, 60% of which is published in dollars - they have no other alternative than to consult dollarized publications.
By Mercedes Soriano
www.buysellba.com
