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Rent prices have increased by more than 300% in the last twelve months: the reasons for the increases throughout the country - Infobae
Source:
www.infobae.com
July 14, 2024
A private report reveals the causes behind the steeper increases than in CABA. Dynamics of new contracts after the DNU that eliminated the Law sanctioned in 2020. Access to housing is more complex in the interior than in the metropolitan area
By Jose Luis Cieri
In Mendoza capital, a three-room apartment is rented for $402,000 on average per month
Rents for 1- and 2-bedrooms apartments increased by more than 300% year-on-year on average in several provinces, a wide gap when compared to the city of Buenos Aires, where the increase is 250% year-on-year.
A study confirmed that two-room units registered an increase of 308.6% year-on-year, while three-room apartments rose by an average of 327.4% in the main inland towns surveyed, according to Real Estate Report.
Quarterly increases also show an upward trend, with increases of 37.9% for the one-bedroom model and 41.5% for the two-bedrooms model in the last quarter.
Germán Gómez Picasso , from Reporte Inmobiliario, explained to Infobae the reasons behind this increase, which shows strong rises in the interior of the country, surpassing the increases in CABA: “The lack of new supply means that, with vegetative growth, demand acts increasingly stronger. This is a fact that will only be solved when builders and savers see that it is a business to develop for rent again. I think that this will gradually happen, since the repeal of the Rental Law plays in favor.”
In this context, access to housing is more complex in the interior than in CABA. Although the DNU that repealed the Rental Law made many owners return to the traditional model, there are still owners who prefer to rent to students, tourists or professionals, resulting in a shortage of housing for long-term contracts.
In the last quarter, two-bedrooms apartments increased by 27.8%, while on average the interior increased by 41.5% for the same dwelling.
“Clearly, there is a greater supply in CABA, as builders have been more active in the area in recent years. Part of the temporary rental supply is also going to the traditional model, since with the new rules both markets practically merge into one,” explained Gómez Picasso.
Source: Real Estate Report
It is clear that thousands of rental agreements are still suffering the consequences of the sustained and growing inflation of recent months. This situation also led to a considerable increase in rental prices in the interior of the country.
Emilio Caravaca Pazos , president of the Argentine Real Estate Federation (FIRA), explained that recent measurements by the entity's Statistics Committee show a trend towards price stability. "The slowdown in inflation and the increase in the supply of properties are contributing to rental prices remaining more constant."
Those looking for a rental unit find a range of options that they did not have a few months ago, even with high prices. However, this situation will not last long if construction does not resume its pace to match the growth of cities and the cyclical needs of tenants.
“While the current supply has improved, it is crucial that construction continues to develop in order to maintain the balance between supply and demand. Otherwise, we could face a shortage of available units again in the near future,” Caravaca Pazos said.
In the capital of Córdoba, a one-bedroom apartment costs $308,000 per month and a two-bedrooms apartment costs $371,000 on average. And in Rosario, a one-bedroom apartment costs $259,000 and a two-bedrooms apartment costs $366,000 per month.
Source: Real Estate Report
In both Mar del Plata and Mendoza capital the prices are similar: $300,000 for two rooms and $410,000 for two bedrooms per month.
“In many cases, by agreement between the parties or due to the needs of one of them, a longer or shorter period may be agreed upon, but the general rule is 24 months,” Caravaca Pazos clarified.
Source: Real Estate Federation of the Argentine Republic (FIRA)
Quarterly and four-monthly increases were high in the first half of the year, one of the toughest in recent years. Therefore, the real estate sector recommends that the parties and intermediaries maintain constant dialogue to ensure continuity and possibility of payment.
Caravaca Pazos stressed: “In the vast majority of cases, this is being achieved, which undoubtedly helps to prevent the statistical increase in late payments. Flexibility and adaptation to reality are important for the continuity of contracts.”
When there is a good contractual relationship between landlords and tenants, a way is found to ensure that it continues.
ource: Real Estate Federation of the Argentine Republic (FIRA)
Regarding the post-DNU adjustment criteria, there was a significant change. The trend is to maintain a balance in the benefits, preserving the good tenant and ensuring their ability to pay. “In addition, they must maintain the collectibility of expenses, electricity, gas and water, which had greater increases due to the removal of subsidies. This demonstrates the importance of a reasonable and consensual adjustment to face the current economic challenges,” Caravaca Pazos said.
The profile of tenants is changing, as lower-income sectors must give up location, quality and size of the property.
Gómez Picasso concluded: “Central areas are increasingly in demand by high-income sectors, while the rest of the population is moving towards the periphery. This trend is observed both in CABA and in Greater Buenos Aires and in the interior of the country.”
www.buysellba.com
Source:
El precio de los alquileres aumentó más del 300% en los últimos doce meses: las razones de las subas en todo el país
Un informe privado revela las causas detrás de los aumentos más pronunciados que en CABA. Dinámica de nuevos contratos tras el DNU que eliminó la Ley sancionada en 2020. El acceso a la vivienda es más complejo en el interior que en el área metropolitana
www.infobae.com
July 14, 2024
A private report reveals the causes behind the steeper increases than in CABA. Dynamics of new contracts after the DNU that eliminated the Law sanctioned in 2020. Access to housing is more complex in the interior than in the metropolitan area
By Jose Luis Cieri
In Mendoza capital, a three-room apartment is rented for $402,000 on average per month
Rents for 1- and 2-bedrooms apartments increased by more than 300% year-on-year on average in several provinces, a wide gap when compared to the city of Buenos Aires, where the increase is 250% year-on-year.
A study confirmed that two-room units registered an increase of 308.6% year-on-year, while three-room apartments rose by an average of 327.4% in the main inland towns surveyed, according to Real Estate Report.
Quarterly increases also show an upward trend, with increases of 37.9% for the one-bedroom model and 41.5% for the two-bedrooms model in the last quarter.
Germán Gómez Picasso , from Reporte Inmobiliario, explained to Infobae the reasons behind this increase, which shows strong rises in the interior of the country, surpassing the increases in CABA: “The lack of new supply means that, with vegetative growth, demand acts increasingly stronger. This is a fact that will only be solved when builders and savers see that it is a business to develop for rent again. I think that this will gradually happen, since the repeal of the Rental Law plays in favor.”
In this context, access to housing is more complex in the interior than in CABA. Although the DNU that repealed the Rental Law made many owners return to the traditional model, there are still owners who prefer to rent to students, tourists or professionals, resulting in a shortage of housing for long-term contracts.
In the last quarter, two-bedrooms apartments increased by 27.8%, while on average the interior increased by 41.5% for the same dwelling.
“Clearly, there is a greater supply in CABA, as builders have been more active in the area in recent years. Part of the temporary rental supply is also going to the traditional model, since with the new rules both markets practically merge into one,” explained Gómez Picasso.
Source: Real Estate Report
It is clear that thousands of rental agreements are still suffering the consequences of the sustained and growing inflation of recent months. This situation also led to a considerable increase in rental prices in the interior of the country.
Emilio Caravaca Pazos , president of the Argentine Real Estate Federation (FIRA), explained that recent measurements by the entity's Statistics Committee show a trend towards price stability. "The slowdown in inflation and the increase in the supply of properties are contributing to rental prices remaining more constant."
Those looking for a rental unit find a range of options that they did not have a few months ago, even with high prices. However, this situation will not last long if construction does not resume its pace to match the growth of cities and the cyclical needs of tenants.
“While the current supply has improved, it is crucial that construction continues to develop in order to maintain the balance between supply and demand. Otherwise, we could face a shortage of available units again in the near future,” Caravaca Pazos said.
Some values
Currently, a one-bedroom apartment in San Carlos de Bariloche, the most sought-after city according to Real Estate Report, costs $550,000 and a two-bdrooms apartment costs $700,000 per month on average.In the capital of Córdoba, a one-bedroom apartment costs $308,000 per month and a two-bedrooms apartment costs $371,000 on average. And in Rosario, a one-bedroom apartment costs $259,000 and a two-bedrooms apartment costs $366,000 per month.
Source: Real Estate Report
In both Mar del Plata and Mendoza capital the prices are similar: $300,000 for two rooms and $410,000 for two bedrooms per month.
Dynamic
Based on 57,725 contracts surveyed, of which 46,000 are housing contracts, more than 70% of the contracts are for 24 months.“In many cases, by agreement between the parties or due to the needs of one of them, a longer or shorter period may be agreed upon, but the general rule is 24 months,” Caravaca Pazos clarified.
Source: Real Estate Federation of the Argentine Republic (FIRA)
Quarterly and four-monthly increases were high in the first half of the year, one of the toughest in recent years. Therefore, the real estate sector recommends that the parties and intermediaries maintain constant dialogue to ensure continuity and possibility of payment.
Caravaca Pazos stressed: “In the vast majority of cases, this is being achieved, which undoubtedly helps to prevent the statistical increase in late payments. Flexibility and adaptation to reality are important for the continuity of contracts.”
When there is a good contractual relationship between landlords and tenants, a way is found to ensure that it continues.
ource: Real Estate Federation of the Argentine Republic (FIRA)
Regarding the post-DNU adjustment criteria, there was a significant change. The trend is to maintain a balance in the benefits, preserving the good tenant and ensuring their ability to pay. “In addition, they must maintain the collectibility of expenses, electricity, gas and water, which had greater increases due to the removal of subsidies. This demonstrates the importance of a reasonable and consensual adjustment to face the current economic challenges,” Caravaca Pazos said.
Future
Rents are expected to continue to rise sharply, as 50,000 more homes are added each year to the country's current shortage. This is because natural growth and immigration outstrip the number of homes developed or built by both the public and private sectors.The profile of tenants is changing, as lower-income sectors must give up location, quality and size of the property.
Gómez Picasso concluded: “Central areas are increasingly in demand by high-income sectors, while the rest of the population is moving towards the periphery. This trend is observed both in CABA and in Greater Buenos Aires and in the interior of the country.”
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