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Properties: the 5 neighborhoods where you have to compromise on price if you want to rent your property - La Nacion Propiedades
Source:
June 25, 2024
The supply of rental properties is in a process of rapid recovery; the neighborhoods in which tenants can make a greater counteroffer
Candle Contreras
There are five neighborhoods in the city of Buenos Aires that have the largest number of rental properties available Shutterstock
The repeal of the rental law allowed for greater contractual freedom between the parties. Owners began to see the consequences of the end of the regulations - on December 29, 2023, when Javier Milei's DNU came into force - and the desperation to occupy the homes began to be felt : properties that were previously reserved in a few days to the highest bidder can now spend weeks published on the same site until they are rented. The cause? the excess of supply.
Since the DNU came into force, the supply of rental properties has increased by 190% , according to data provided by the Statistical Observatory of the Real Estate Sector, which belongs to the Real Estate Association of the city of Buenos Aires . In addition, a key fact to keep in mind is that, of the total number of publications, 95% correspond to apartments, 3.3% to PH and the remaining 1.7% to houses. “ The deregulation of rentals allowed the sector to regain vitality ,” says Diego Frangella, president of the Association. In turn, according to the year-on-year analysis, the supply in May increased by 8.98% compared to April 2024.
According to these data, the dynamics have been reversed in just a few months: in the last three years, apartments were empty because the owners did not want to rent under the law and tenants were desperate to find housing ; now, tenants have a wide range of options, they can choose and even set certain conditions, and the owners must accept the new rules in order to have them occupied.
With the new guidelines set by the rental market , if owners do not want to have the property idle for weeks , they must begin to accept the possibility of a counteroffer from tenants , who, with more options on the market, end up choosing the property that best suits them. “The demand remains the same, but, as there is a greater supply, the time to complete is longer. That is why it is always preferable to have the apartment rented rather than empty,” adds Frangella.
In concrete data, the share of the rental property supply for housing is 13.92% of the total market in CABA (average according to publications in different portals), while in December - prior to the repeal of the regulations - it was 5.53% . In turn, the supply of rental properties for housing in May increased by 8.9% and continues to firmly rise. "It would be very strange for the rental supply to rise much beyond current levels, due to strong demand, vegetative growth and immigration," says Germán Gómez Picasso, founder of Reporte Inmobiliario.
“In most cases, tenants can make offers and fight over the price, with discounts of between 10% and up to 20% less than the initial listing price . Today, with the rise in the cost of expenses and taxes, the landlord prefers to give up those percentages and rent it out rather than have it empty,” says Enrique Abatti, president of the Chamber of Property Owners of the Argentine Republic . Therefore , the neighborhoods with the largest number of properties for rent are, in turn, those with the greatest possibility of a counteroffer from potential tenants.
The supply of properties for rent in CABA increased by 190% since the repeal of the lawShutterstock
Palermo is not only the neighborhood with the highest number of properties published for rent, but it was also the one with the highest growth in the last month : 15.4% in May compared to April.
Palermo is in first place with the largest offer on the market and is the second most expensive to rent Gerardo Viercovich - The Nation
An important fact is that four of these areas , in addition to having the largest supply on the rental market, are in the top 10 of those with the most expensive listing prices . “The repeal of the rental law took us out of the 'zero supply' scenario, but the need for housing is such that the pressure on rental values will continue,” explains Gómez Picasso.
In concrete numbers, the average rent for a two-room apartment in these neighborhoods in May is around the following values , according to the latest Zonaprop index :
www.buysellba.com
Source:
June 25, 2024
The supply of rental properties is in a process of rapid recovery; the neighborhoods in which tenants can make a greater counteroffer
Candle Contreras
There are five neighborhoods in the city of Buenos Aires that have the largest number of rental properties available Shutterstock
The repeal of the rental law allowed for greater contractual freedom between the parties. Owners began to see the consequences of the end of the regulations - on December 29, 2023, when Javier Milei's DNU came into force - and the desperation to occupy the homes began to be felt : properties that were previously reserved in a few days to the highest bidder can now spend weeks published on the same site until they are rented. The cause? the excess of supply.
Since the DNU came into force, the supply of rental properties has increased by 190% , according to data provided by the Statistical Observatory of the Real Estate Sector, which belongs to the Real Estate Association of the city of Buenos Aires . In addition, a key fact to keep in mind is that, of the total number of publications, 95% correspond to apartments, 3.3% to PH and the remaining 1.7% to houses. “ The deregulation of rentals allowed the sector to regain vitality ,” says Diego Frangella, president of the Association. In turn, according to the year-on-year analysis, the supply in May increased by 8.98% compared to April 2024.
According to these data, the dynamics have been reversed in just a few months: in the last three years, apartments were empty because the owners did not want to rent under the law and tenants were desperate to find housing ; now, tenants have a wide range of options, they can choose and even set certain conditions, and the owners must accept the new rules in order to have them occupied.
With the new guidelines set by the rental market , if owners do not want to have the property idle for weeks , they must begin to accept the possibility of a counteroffer from tenants , who, with more options on the market, end up choosing the property that best suits them. “The demand remains the same, but, as there is a greater supply, the time to complete is longer. That is why it is always preferable to have the apartment rented rather than empty,” adds Frangella.
In concrete data, the share of the rental property supply for housing is 13.92% of the total market in CABA (average according to publications in different portals), while in December - prior to the repeal of the regulations - it was 5.53% . In turn, the supply of rental properties for housing in May increased by 8.9% and continues to firmly rise. "It would be very strange for the rental supply to rise much beyond current levels, due to strong demand, vegetative growth and immigration," says Germán Gómez Picasso, founder of Reporte Inmobiliario.
“In most cases, tenants can make offers and fight over the price, with discounts of between 10% and up to 20% less than the initial listing price . Today, with the rise in the cost of expenses and taxes, the landlord prefers to give up those percentages and rent it out rather than have it empty,” says Enrique Abatti, president of the Chamber of Property Owners of the Argentine Republic . Therefore , the neighborhoods with the largest number of properties for rent are, in turn, those with the greatest possibility of a counteroffer from potential tenants.
The supply of properties for rent in CABA increased by 190% since the repeal of the lawShutterstock
The neighborhoods with the highest rental offer
According to the College's report, there are five neighborhoods in the city of Buenos Aires that take 60.84% of the total offer , these are:- Palermo : with 23.1%
- Belgrano : 11.6%
- Recoleta : 15.5%
- Little horse : 5.9%
- Puerto Madero : 4.7%
Palermo is not only the neighborhood with the highest number of properties published for rent, but it was also the one with the highest growth in the last month : 15.4% in May compared to April.
Palermo is in first place with the largest offer on the market and is the second most expensive to rent Gerardo Viercovich - The Nation
An important fact is that four of these areas , in addition to having the largest supply on the rental market, are in the top 10 of those with the most expensive listing prices . “The repeal of the rental law took us out of the 'zero supply' scenario, but the need for housing is such that the pressure on rental values will continue,” explains Gómez Picasso.
In concrete numbers, the average rent for a two-room apartment in these neighborhoods in May is around the following values , according to the latest Zonaprop index :
- Puerto Madero: tops the list with $1,052,056
- Palermo : in second place with $505,329
- Belgrano : is in fifth place, with a price of $481,859
- Recoleta : is in seventh place with $474,744
- Caballito : last on the list of those with the highest offer, but in 18th place in terms of publication values, with $428,279
www.buysellba.com
