BuySellBA
Administrator
Property prices in CABA: which apartments have appreciated the most in one year and why - Infobae
Source:
www.infobae.com
September 11, 2024
The scenario was reversed and after five years of decline, some homes began to recover part of their value.
By Jose Luis Cieri
The values of the smaller apartments are those that have appreciated the most in one year
In a context of economic fluctuations and political changes, the real estate market in the city of Buenos Aires reversed the trend in the values of apartments for sale. Not only did they stop falling, but most units began to appreciate again.
A private analysis with comparative figures between August 2023 and August 2024 confirmed that one of the segments that showed the greatest increase in value is the two-room units.
Daniel Bryn , market analyst at Zipcode and head of Monitor Inmobiliario, told Infobae that these properties are in high demand due to their versatility. “The one-bedroom apartment is the wild card in CABA. They are purchased by couples as a first home, as well as by investors, due to their prices that range between USD 110,000 and 130,000 dollars,” he said.
According to the report, two-room units registered an increase of 11.48%, compared to 8.81% for studio apartments.
This situation contrasts with the drop in prices that lasted between June 2018 and August of last year, when used apartments in CABA fell by 45% and brand new apartments by 38% on average.
Diego Migliorisi , from Migliorisi Properties, explained that the segment most affected by the downward trend in prices was that of studio and 1-bedroom apartments. “Thousands of properties that were for sale returned to the rental market (after the DNU that repealed the Rental Law), leading to the gradual disappearance of the overstock. In addition, the return of investors, who had been expectant regarding the socioeconomic situation, began to reverse the situation.”
To a lesser extent, mortgage lending also contributed to dismantling the oversupply, resulting in a decrease in the number of units and an increase in the number of buyers.
“Property values have stopped falling and the counteroffers accepted by owners have decreased compared to the time of overstock. Although this phenomenon is more evident in one- and two-room units, it also affects commercial premises, which have been the most affected recently,” Migliorisi added.
Prices have risen especially for studio- to 2-bedroom units. The market must be divided into properties under construction, which will inevitably continue to rise due to cost issues, and second-hand properties.
Migliorisi added: “In this last case, several investors and buyers for permanent use see that there are still opportunity prices and are accelerating their decisions and closing deals.”
General average ticket: USD 149,851 (+4.83%).
"We have had more than 60 months of declining prices per square meter. Today, after a few months of stable prices, we are seeing an increase in small units," Bryn added.
Investors also prefer studio and one-bedroom units due to their affordability and ease of sale or rental later.
Source: Zipcode and Real Estate Monitor
Francisco Altgelt , president of Altgelt Negocios Inmobiliarios, mentioned that several of the buyers are small investors who are looking for a safe haven and, in the meantime, earn an income. “Starting in October, we expect the appearance of those who entered into the money laundering scheme and those who will buy with a mortgage loan. This credit will not only apply to those who buy their first home, but also to those who are looking for the credit as an investment,” he said.
Bryn said that these types of properties have a specific audience, usually not made up of investors but rather end users. “In the long term, they can be a good bet. Because if the economy grows, living in large apartments will become an aspiration,” he said.
Migliorisi said that, far from a decline, families who had postponed moving are resuming their search, closing more deals in large units.
It is ideal to buy one-bedroom apartments, since they are the ones that will increase the most in value, while only the 3 or 4-bedroom units dropped slightly due to lower demand.
One-bedroom apartments among those that have appreciated the most in value in twelve months
Altgelt explained that “the low demand for large apartments is due to the fact that they are mainly intended for end consumers, while studio- and one-room units attract both end buyers and investors.”
They recommend prioritizing strategic locations and considering properties that require remodeling, which can mean savings.
“If the apartment needs improvements, such as in the kitchen or bathroom, you can get a better asking price,” Bryn explained.
The importance of monitoring the market and comparing prices per m2 to identify good investments is highlighted.
www.buysellba.com
Source:
Los precios de la propiedades en CABA: cuáles son los departamentos que más se valorizaron en un año y por qué
El escenario se revirtió y tras cinco años de caída y algunas viviendas comenzaron a recuperar parte de su cotización
www.infobae.com
September 11, 2024
The scenario was reversed and after five years of decline, some homes began to recover part of their value.
By Jose Luis Cieri
The values of the smaller apartments are those that have appreciated the most in one year
In a context of economic fluctuations and political changes, the real estate market in the city of Buenos Aires reversed the trend in the values of apartments for sale. Not only did they stop falling, but most units began to appreciate again.
A private analysis with comparative figures between August 2023 and August 2024 confirmed that one of the segments that showed the greatest increase in value is the two-room units.
Daniel Bryn , market analyst at Zipcode and head of Monitor Inmobiliario, told Infobae that these properties are in high demand due to their versatility. “The one-bedroom apartment is the wild card in CABA. They are purchased by couples as a first home, as well as by investors, due to their prices that range between USD 110,000 and 130,000 dollars,” he said.
According to the report, two-room units registered an increase of 11.48%, compared to 8.81% for studio apartments.
This situation contrasts with the drop in prices that lasted between June 2018 and August of last year, when used apartments in CABA fell by 45% and brand new apartments by 38% on average.
Diego Migliorisi , from Migliorisi Properties, explained that the segment most affected by the downward trend in prices was that of studio and 1-bedroom apartments. “Thousands of properties that were for sale returned to the rental market (after the DNU that repealed the Rental Law), leading to the gradual disappearance of the overstock. In addition, the return of investors, who had been expectant regarding the socioeconomic situation, began to reverse the situation.”
To a lesser extent, mortgage lending also contributed to dismantling the oversupply, resulting in a decrease in the number of units and an increase in the number of buyers.
“Property values have stopped falling and the counteroffers accepted by owners have decreased compared to the time of overstock. Although this phenomenon is more evident in one- and two-room units, it also affects commercial premises, which have been the most affected recently,” Migliorisi added.
Prices have risen especially for studio- to 2-bedroom units. The market must be divided into properties under construction, which will inevitably continue to rise due to cost issues, and second-hand properties.
Migliorisi added: “In this last case, several investors and buyers for permanent use see that there are still opportunity prices and are accelerating their decisions and closing deals.”
Values
Below are the average unit prices in CABA and their year-on-year percentage performance, according to Monitor Inmobiliario's analysis:General average ticket: USD 149,851 (+4.83%).
- Studio: USD 94,342 (+8.81%).
- 1 bedroom: USD 132,117 (+11.48%).
- 2 bedrooms: USD 174,383 (+5.80%).
- 3 bedrooms: USD 202,718 (-0.33%).
- 4 bedrooms: USD 358,888 (-3.39%).
"We have had more than 60 months of declining prices per square meter. Today, after a few months of stable prices, we are seeing an increase in small units," Bryn added.
Investors also prefer studio and one-bedroom units due to their affordability and ease of sale or rental later.
Source: Zipcode and Real Estate Monitor
Francisco Altgelt , president of Altgelt Negocios Inmobiliarios, mentioned that several of the buyers are small investors who are looking for a safe haven and, in the meantime, earn an income. “Starting in October, we expect the appearance of those who entered into the money laundering scheme and those who will buy with a mortgage loan. This credit will not only apply to those who buy their first home, but also to those who are looking for the credit as an investment,” he said.
What happened in other types of properties
The largest apartments, those with more than three bedrooms, experienced a drop in value. However, this trend could be temporary.Bryn said that these types of properties have a specific audience, usually not made up of investors but rather end users. “In the long term, they can be a good bet. Because if the economy grows, living in large apartments will become an aspiration,” he said.
They are still opportunities
The real estate market recommends taking advantage of this moment to buy, since waiting for a sharp drop in prices only leads to wasting time and money.Migliorisi said that, far from a decline, families who had postponed moving are resuming their search, closing more deals in large units.
It is ideal to buy one-bedroom apartments, since they are the ones that will increase the most in value, while only the 3 or 4-bedroom units dropped slightly due to lower demand.
One-bedroom apartments among those that have appreciated the most in value in twelve months
Altgelt explained that “the low demand for large apartments is due to the fact that they are mainly intended for end consumers, while studio- and one-room units attract both end buyers and investors.”
Strategies
This is a good time to take advantage of low prices, say those in the sector, and the best options are found in well-located properties at a good price.They recommend prioritizing strategic locations and considering properties that require remodeling, which can mean savings.
“If the apartment needs improvements, such as in the kitchen or bathroom, you can get a better asking price,” Bryn explained.
The importance of monitoring the market and comparing prices per m2 to identify good investments is highlighted.
www.buysellba.com
