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Record rental offers: the 20,700 properties published in the AMBA are double that of a year ago - Infobae
Source:
www.infobae.com
August 01, 2024
This was confirmed by a private analysis which also confirmed that the starting point values for new contracts remain high but are below inflation.
By Jose Luis Cieri
With a greater supply of rental housing, the market is gradually becoming more regulated. Tenants continue to pay high prices compared to their income (Illustrative image Infobae) (Illustrative image Infobae)
The supply of rental housing in the Buenos Aires Metropolitan Area (AMBA) has recovered to record levels. According to recent data, the number of properties available for rent has doubled in the last 12 months, reaching a total of 20,700 properties. This significant increase was further strengthened after the implementation of the Government decree that repealed the Rental Law.
In July 2023, the Mercado Libre Inmuebles platform registered 11,000 rental properties, including houses, apartments and PHs. Last July, this figure almost doubled. This was reported by the same platform, which produces the real estate market report together with the University of San Andrés (Udesa).
Following the repeal of the controversial Rental Law, the supply reached its highest point since before the pandemic and the work also detected that in the first 6 months of 2024, the supply grew by 218% in the AMBA.
Prices have also stabilized, according to the report, and rents published in pesos have increased, although they remain high. The work confirmed that the starting point value of the new agreements is below inflation.
Mariano García Malbrán , president of the Chamber of Real Estate Services Companies (Camesi), told Infobae that without the law, the supply of residential rental properties improved a lot. “This phenomenon, although it occurs at a national level, is more evident in large cities and in Greater Buenos Aires (GBA). The number of properties offered tripled compared to the end of the year, which brought order to the rental market,” he said.
Rentals in AMBA
Landlords used to be able to ask for exorbitant prices due to a shortage of properties, but now, with a more abundant supply, tenants have more options and better conditions.
Despite the economic challenges, residential rental prices rose 39% less than inflation, and quarterly updates by the Consumer Price Index (CPI) will gradually correct this variable.
The offer expanded notably in CABA: Palermo, Puerto Madero, Recoleta, Caballito and Villa Urquiza are among the neighborhoods that lead the proposals
“It is now more convenient for owners to rent in pesos with quarterly updates, since the dollar has increased by 40% and inflation has quadrupled that percentage. In Argentina, it is essential to review the most suitable real estate deals on a quarterly basis, but today nothing beats buying a property and renting it until its value appreciates,” added García Malbrán.
Rentals in June
The research also revealed an increasing trend in the supply of rentals in pesos.
There were strong increases, but below inflation. House rental prices had variations of 184.6% in GBA West, 147.3% in GBA South and 141.4% in GBA North.
In the case of departments, year-on-year variations of 203.8% are observed in GBA West, 190.9% in GBA South Zone, 137.6% in GBA North and 115.1% in CABA.
A two-bedroom house with a garage and a patio or park for rent in the AMBA costs no less than $400,000 per month
Lisandro Cuello , a real estate expert, said that houses are sought mainly in different neighborhoods of the GBA because, although sometimes their price is a little higher than that of apartments, the monthly cost is lower because they do not have expenses. In addition, if they have a garage, it is included in the monthly price, which is cheaper than if the tenant has to pay for a garage separately.
In the north of the GBA, a two-bedroom house with a patio and garage averages $600,000 per month. While in the south, the average monthly price drops to $500,000.
“Currently, in the western part the average falls to $460,000 per month, except for areas close to central streets or avenues. Demand tends to prioritize security and that is why it favors houses close to easy access roads, even though sometimes it pays up to 30% more in rent,” Cuello concluded.
www.buysellba.com
Source:
Récord de oferta de alquileres: los 20.700 inmuebles publicados en el AMBA son el doble que hace un año
Así lo precisó un análisis privado que también confirmó que los valores para el punto de partida de nuevos contratos siguen siendo elevados pero están por debajo de la inflación
www.infobae.com
August 01, 2024
This was confirmed by a private analysis which also confirmed that the starting point values for new contracts remain high but are below inflation.
By Jose Luis Cieri
With a greater supply of rental housing, the market is gradually becoming more regulated. Tenants continue to pay high prices compared to their income (Illustrative image Infobae) (Illustrative image Infobae)
The supply of rental housing in the Buenos Aires Metropolitan Area (AMBA) has recovered to record levels. According to recent data, the number of properties available for rent has doubled in the last 12 months, reaching a total of 20,700 properties. This significant increase was further strengthened after the implementation of the Government decree that repealed the Rental Law.
In July 2023, the Mercado Libre Inmuebles platform registered 11,000 rental properties, including houses, apartments and PHs. Last July, this figure almost doubled. This was reported by the same platform, which produces the real estate market report together with the University of San Andrés (Udesa).
Following the repeal of the controversial Rental Law, the supply reached its highest point since before the pandemic and the work also detected that in the first 6 months of 2024, the supply grew by 218% in the AMBA.
Prices have also stabilized, according to the report, and rents published in pesos have increased, although they remain high. The work confirmed that the starting point value of the new agreements is below inflation.
Mariano García Malbrán , president of the Chamber of Real Estate Services Companies (Camesi), told Infobae that without the law, the supply of residential rental properties improved a lot. “This phenomenon, although it occurs at a national level, is more evident in large cities and in Greater Buenos Aires (GBA). The number of properties offered tripled compared to the end of the year, which brought order to the rental market,” he said.
Rentals in AMBA
Landlords used to be able to ask for exorbitant prices due to a shortage of properties, but now, with a more abundant supply, tenants have more options and better conditions.
Despite the economic challenges, residential rental prices rose 39% less than inflation, and quarterly updates by the Consumer Price Index (CPI) will gradually correct this variable.
The offer expanded notably in CABA: Palermo, Puerto Madero, Recoleta, Caballito and Villa Urquiza are among the neighborhoods that lead the proposals
“It is now more convenient for owners to rent in pesos with quarterly updates, since the dollar has increased by 40% and inflation has quadrupled that percentage. In Argentina, it is essential to review the most suitable real estate deals on a quarterly basis, but today nothing beats buying a property and renting it until its value appreciates,” added García Malbrán.
How much does it cost to rent in CABA?
The data in the report show that the increases were high, but below the accumulated inflation in the same months (Indec reported a variation of 79.8% in the first half of the year and rents rose by 40% in the AMBA):- Studio: $350,000 (24% more than in December 2023).
- One bedroom: $450,000 (+29% vs. December 2023).
- Two bedroom: $670,000 (+10.2% vs. December 2023).
- Three bedroom or more: $1,492,000 (+7% vs. December 2023).
Rentals in June
The research also revealed an increasing trend in the supply of rentals in pesos.
Most searched
Below are the most popular locations based on searches made on the portal:- CABA: Caballito, Palermo and Belgrano.
- GBA North: Vicente Lopez, Pilar and General San Martin.
- GBA South: La Plata, Quilmes and Avellaneda.
- GBA West: La Matanza, Moron and February 3.
Increases
In June, data shows that the area with the highest increase in apartment rental prices was GBA Norte with a 6% increase, followed by CABA with 5%; GBA Sur and GBA Oeste also experienced increases, although to a lesser extent, with rises of 4.2% and 3.5% respectively.There were strong increases, but below inflation. House rental prices had variations of 184.6% in GBA West, 147.3% in GBA South and 141.4% in GBA North.
In the case of departments, year-on-year variations of 203.8% are observed in GBA West, 190.9% in GBA South Zone, 137.6% in GBA North and 115.1% in CABA.
Variations in houses
Compared to July 2023, house rental prices registered notable variations in the AMBA. In GBA Norte, prices increased by 164.2%, while in GBA Sur the variation was 173.5%. In GBA Oeste, an increase of 195.4% was observed, and in CABA the variation was 146.6% year-on-year.
A two-bedroom house with a garage and a patio or park for rent in the AMBA costs no less than $400,000 per month
Lisandro Cuello , a real estate expert, said that houses are sought mainly in different neighborhoods of the GBA because, although sometimes their price is a little higher than that of apartments, the monthly cost is lower because they do not have expenses. In addition, if they have a garage, it is included in the monthly price, which is cheaper than if the tenant has to pay for a garage separately.
In the north of the GBA, a two-bedroom house with a patio and garage averages $600,000 per month. While in the south, the average monthly price drops to $500,000.
“Currently, in the western part the average falls to $460,000 per month, except for areas close to central streets or avenues. Demand tends to prioritize security and that is why it favors houses close to easy access roads, even though sometimes it pays up to 30% more in rent,” Cuello concluded.
www.buysellba.com
