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Real estate market in AMBA: why house prices keep falling while apartment prices rise - Infobae
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www.infobae.com
October 10, 2024
A private study revealed that the year-on-year values of apartments are showing an upward trend. What is happening with rents and which are the most sought-after areas?
By Jose Luis Cieri
The real estate market confirmed that apartment values have stopped falling in the AMBA (Illustrative Image Infobae)
The real estate market in the Buenos Aires Metropolitan Area (AMBA) began the second half of 2024 with rising numbers.
The AMBA, which includes the city of Buenos Aires and Greater Buenos Aires (GBA), shows greater dynamics in property sales, driven both by those with savings and by the availability of mortgage loans.
This situation is reflected in the records of the Notary Associations of CABA and the Province of Buenos Aires , which together accounted for almost 16,000 transactions in August, representing 25% more deeds than the same month last year, involving both districts.
This recovery is causing prices, which had hit a historic low, to begin to rise. However, the report by Mercado Libre and the University of San Andrés (Udesa) revealed that, unlike apartments, the listing prices for houses continue to decline.
According to the data collected, house prices in CABA decreased by 2.2% in September compared to the same month last year. In AMBA the drop was greater, reaching 5% year-on-year.
“Although there are people who prefer to look for houses or PHs to avoid paying expenses, these properties are usually more expensive than apartments, especially if they have a garage, which increases the appraisal value by up to 20%. But the reduction in value is because apartment transactions predominate in CABA,” Mariana Lucángeli , architect and Real Estate expert, explained to Infobae.
Another reason for the drop in house prices is that they often require higher investments in maintenance and renovation, which discourages many buyers.
Lucángeli added: “Furthermore, apartments offer a higher return on rentals, both traditional and temporary, which makes them a priority in a market where investors seek to optimize their profits. For this reason, apartments saw an increase in demand, driving up their prices.”
In contrast, according to the report, apartment prices showed an opposite trend. In the last year, values rose by 8.8% in CABA and 5.1% in AMBA.
Apartment prices in AMBA
Gustavo Lo Valvo , from a real estate agency that operates in the western part of Buenos Aires, pointed out that the explanation behind this difference is clear: “The current demand is concentrated in properties with values that range between USD 70,000 and USD 110,000, one- or two-room apartments, depending on the area. And some three-room apartments.”
The value of a square meter of houses in CABA is USD 1,315, according to data from the analysis. In the North Zone of GBA, the average is USD 836, while in the South it drops to USD 650 per m2.
The only exception is Vicente López, where a slight year-on-year increase of 0.8 percent was recorded. “This district is highly sought after and one of the few in which housing prices are increasing more strongly, due to its proximity to service areas, good connectivity, access to the river, and the offer of spacious houses with modern and functional designs, which attract a young and select demand,” Lucángeli added.
In CABA, the behavior of prices varies depending on the area. For example, in Núñez, Saavedra and Villa Pueyrredón they offer opportunities with year-on-year decreases of up to 6% in dollars.
However, Palermo, Belgrano, Flores and Parque Chacabuco showed increases of up to 13% in apartments, driven by the high demand in these areas, explained Lo Valvo. “The limited supply in these neighborhoods generates competition that pushes prices up, especially in areas with good connectivity and services,” he added.
Puerto Madero remains the most expensive neighborhood, with an average value of USD 5,600 per m2, and a year-on-year increase of 6.4%; it is followed by Palermo and Belgrano, with prices of USD 3,165 and USD 2,937 per m2, respectively.
Apartment prices in CABA
For buying and selling, the Caballito and Belgrano neighborhoods lead the searches in CABA, while La Plata, Vicente López and La Matanza lead the demand in the GBA.
To rent a two-room, 45 m2 apartment in CABA, you need almost $520,000 per month on average.
Source: Mercado Libre and University of San Andrés (UDESA)
Neighborhoods such as Caballito, Belgrano and Recoleta continue to lead the demand for this type of units in CABA, while Pilar, Quilmes, La Plata, Vicente López and La Matanza lead the requests in the suburbs.
Rents continue to rise, although at a rate below inflation, influenced by the repeal of the Rental Law. This amendment helped stabilise supply after several months of sustained growth, creating a more balanced outlook for both tenants and owners.
In CABA, apartment rentals registered a 2.6% month-on-month increase. “The supply that is being incorporated is based on a lower initial price compared to what was offered towards the end of last year, which caused a stabilization in the average rental price,” concluded Lo Valvo.
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Source:
Mercado inmobiliario en el AMBA: por qué los precios de las casas siguen bajando mientras los departamentos aumentan
Un estudio privado reveló que los valores interanuales de los departamentos muestran una tendencia al alza. Qué ocurre con los alquileres y cuáles son las zonas más demandadas
www.infobae.com
October 10, 2024
A private study revealed that the year-on-year values of apartments are showing an upward trend. What is happening with rents and which are the most sought-after areas?
By Jose Luis Cieri
The real estate market confirmed that apartment values have stopped falling in the AMBA (Illustrative Image Infobae)
The real estate market in the Buenos Aires Metropolitan Area (AMBA) began the second half of 2024 with rising numbers.
The AMBA, which includes the city of Buenos Aires and Greater Buenos Aires (GBA), shows greater dynamics in property sales, driven both by those with savings and by the availability of mortgage loans.
This situation is reflected in the records of the Notary Associations of CABA and the Province of Buenos Aires , which together accounted for almost 16,000 transactions in August, representing 25% more deeds than the same month last year, involving both districts.
This recovery is causing prices, which had hit a historic low, to begin to rise. However, the report by Mercado Libre and the University of San Andrés (Udesa) revealed that, unlike apartments, the listing prices for houses continue to decline.
According to the data collected, house prices in CABA decreased by 2.2% in September compared to the same month last year. In AMBA the drop was greater, reaching 5% year-on-year.
“Although there are people who prefer to look for houses or PHs to avoid paying expenses, these properties are usually more expensive than apartments, especially if they have a garage, which increases the appraisal value by up to 20%. But the reduction in value is because apartment transactions predominate in CABA,” Mariana Lucángeli , architect and Real Estate expert, explained to Infobae.
Another reason for the drop in house prices is that they often require higher investments in maintenance and renovation, which discourages many buyers.
Lucángeli added: “Furthermore, apartments offer a higher return on rentals, both traditional and temporary, which makes them a priority in a market where investors seek to optimize their profits. For this reason, apartments saw an increase in demand, driving up their prices.”
In contrast, according to the report, apartment prices showed an opposite trend. In the last year, values rose by 8.8% in CABA and 5.1% in AMBA.
Apartment prices in AMBA
Gustavo Lo Valvo , from a real estate agency that operates in the western part of Buenos Aires, pointed out that the explanation behind this difference is clear: “The current demand is concentrated in properties with values that range between USD 70,000 and USD 110,000, one- or two-room apartments, depending on the area. And some three-room apartments.”
The value of a square meter of houses in CABA is USD 1,315, according to data from the analysis. In the North Zone of GBA, the average is USD 836, while in the South it drops to USD 650 per m2.
The only exception is Vicente López, where a slight year-on-year increase of 0.8 percent was recorded. “This district is highly sought after and one of the few in which housing prices are increasing more strongly, due to its proximity to service areas, good connectivity, access to the river, and the offer of spacious houses with modern and functional designs, which attract a young and select demand,” Lucángeli added.
In CABA, the behavior of prices varies depending on the area. For example, in Núñez, Saavedra and Villa Pueyrredón they offer opportunities with year-on-year decreases of up to 6% in dollars.
What's happening with the departments?
The average price of apartments for sale is USD 2,388 per m2, 8.8% more than in 2023, according to the report.However, Palermo, Belgrano, Flores and Parque Chacabuco showed increases of up to 13% in apartments, driven by the high demand in these areas, explained Lo Valvo. “The limited supply in these neighborhoods generates competition that pushes prices up, especially in areas with good connectivity and services,” he added.
Puerto Madero remains the most expensive neighborhood, with an average value of USD 5,600 per m2, and a year-on-year increase of 6.4%; it is followed by Palermo and Belgrano, with prices of USD 3,165 and USD 2,937 per m2, respectively.
Apartment prices in CABA
For buying and selling, the Caballito and Belgrano neighborhoods lead the searches in CABA, while La Plata, Vicente López and La Matanza lead the demand in the GBA.
Rents below inflation
The report also highlights that rents increased below inflation, with a 52% increase in the last year in CABA, while in the North Zone of GBA the increase was 67 percent.To rent a two-room, 45 m2 apartment in CABA, you need almost $520,000 per month on average.
Source: Mercado Libre and University of San Andrés (UDESA)
Neighborhoods such as Caballito, Belgrano and Recoleta continue to lead the demand for this type of units in CABA, while Pilar, Quilmes, La Plata, Vicente López and La Matanza lead the requests in the suburbs.
Rents continue to rise, although at a rate below inflation, influenced by the repeal of the Rental Law. This amendment helped stabilise supply after several months of sustained growth, creating a more balanced outlook for both tenants and owners.
In CABA, apartment rentals registered a 2.6% month-on-month increase. “The supply that is being incorporated is based on a lower initial price compared to what was offered towards the end of last year, which caused a stabilization in the average rental price,” concluded Lo Valvo.
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