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Rental crisis: Neighborhoods where no apartments are offered - Clarin
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www.clarin.com
November 10, 2023
Every month 12,000 contracts expire, but there are only 500 apartments available in the City of Buenos Aires.The tendency to share a flat is growing.
The new rental law, which came into force last month, did not change the outlook for the sector much: the supply of apartments today is a quarter of what it was last year.
“In October, the number of used 1- to 4-bedroom apartments available for rent that were published on property search engines was only 532 units,” reported the specialized site Real Estate Report.
The figure is 14.3% lower than that of the previous month and represents a collapse of 74.3% compared to that of a year ago, when the number of apartments for rent reached 2,068 units.
"Estimately, based on the number of tenant households in the city that emerges from the census, between 12,000 and 13,000 contracts would expire per month, so although a year ago the supply was already scarce, its current number "It is practically insignificant to meet that demand and new potential tenants," the site stated.
The drop in supply, according to Marta Liotto, former head of CUCICBA, worsened because the Casa Propia Index, which is used to adjust rents with the new law, "has an increase that represents half of inflation and that discourages owners to put their units on the market.
" There are neighborhoods such as Agronomía, Barracas, Villa Luro, Vélez Sarsfield, Pompeya and Saavedra, among others, where the supply is zero. Something that has no precedent in Argentine real estate history," highlights real estate businessman Oscar Puebla.
The shortage of real estate is such, he says, that many tenants are beginning to share apartments, as usually happens in Europe, to economize and divide expenses.
“This is becoming a solution for those who cannot afford the rental costs, especially college students and short-term workers,” he said.
In October, the average value of the existing offer for a studio unit was $187,350 per month, while the average rental value of a one-bedroom unit reached $248,000.
Listings for two-bedroom apartments offered for rent last October recorded an average price of $311,400 , while the few three-bedroom units available reached a median price of $340,000.
According to the measurements of the real estate portal Zonaprop, which takes the prices published in the notices , the rental value of a studio apartment in the City is $207,017 per month, that of a one-bedroom apartment reaches $255,685 per month and a two-bedroom, 70 m2 unit is rented for $343,227.
According to market analysts, in light of the data, it is evident that the sanction of the modification to the rental law of last October 10 was in principle inefficient to achieve, at least, a minimal improvement in the critical situation of the market residential location.
According to Liotto, "the market is in absolute stagnation, without new contracts being made under the conditions stipulated by the recently sanctioned Law," he says. And he adds that " the supply of real estate is scarce, heading towards zero."
According to the market leader, the only movement that is being registered in real estate agencies in the rental market is that of contract extensions.
Source:
Crisis en alquileres: hay barrios donde directamente no se ofrece ningún departamento
Cada mes se vencen 12.000 contratos, pero hay solo 500 departamentos disponibles en la Ciudad de Buenos Aires.Crece la tendencia a compartir piso.
www.clarin.com
November 10, 2023
Rental crisis: There are neighborhoods where no apartment is offered at all
Every month 12,000 contracts expire, but there are only 500 apartments available in the City of Buenos Aires.The tendency to share a flat is growing.
The new rental law, which came into force last month, did not change the outlook for the sector much: the supply of apartments today is a quarter of what it was last year.
“In October, the number of used 1- to 4-bedroom apartments available for rent that were published on property search engines was only 532 units,” reported the specialized site Real Estate Report.
The figure is 14.3% lower than that of the previous month and represents a collapse of 74.3% compared to that of a year ago, when the number of apartments for rent reached 2,068 units.
"Estimately, based on the number of tenant households in the city that emerges from the census, between 12,000 and 13,000 contracts would expire per month, so although a year ago the supply was already scarce, its current number "It is practically insignificant to meet that demand and new potential tenants," the site stated.
The drop in supply, according to Marta Liotto, former head of CUCICBA, worsened because the Casa Propia Index, which is used to adjust rents with the new law, "has an increase that represents half of inflation and that discourages owners to put their units on the market.
" There are neighborhoods such as Agronomía, Barracas, Villa Luro, Vélez Sarsfield, Pompeya and Saavedra, among others, where the supply is zero. Something that has no precedent in Argentine real estate history," highlights real estate businessman Oscar Puebla.
The shortage of real estate is such, he says, that many tenants are beginning to share apartments, as usually happens in Europe, to economize and divide expenses.
“This is becoming a solution for those who cannot afford the rental costs, especially college students and short-term workers,” he said.
How much does a one-bedroom apartment cost in Capital?
Added to the precipitous fall in supply is an acceleration in the increase in prices. In the general average of apartments of all types, the increase is 233% year-on-year, according to the Real Estate Report.In October, the average value of the existing offer for a studio unit was $187,350 per month, while the average rental value of a one-bedroom unit reached $248,000.
Listings for two-bedroom apartments offered for rent last October recorded an average price of $311,400 , while the few three-bedroom units available reached a median price of $340,000.
According to the measurements of the real estate portal Zonaprop, which takes the prices published in the notices , the rental value of a studio apartment in the City is $207,017 per month, that of a one-bedroom apartment reaches $255,685 per month and a two-bedroom, 70 m2 unit is rented for $343,227.
According to market analysts, in light of the data, it is evident that the sanction of the modification to the rental law of last October 10 was in principle inefficient to achieve, at least, a minimal improvement in the critical situation of the market residential location.
According to Liotto, "the market is in absolute stagnation, without new contracts being made under the conditions stipulated by the recently sanctioned Law," he says. And he adds that " the supply of real estate is scarce, heading towards zero."
According to the market leader, the only movement that is being registered in real estate agencies in the rental market is that of contract extensions.
