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Rentals: Buenos Aires supply grew by 25% in a few days and apartments appeared in neighborhoods where there were no options - Infobae
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Alquileres: la oferta porteña creció un 25% en pocos días y aparecieron departamentos en barrios donde no había opciones
Luego del DNU que derogó la polémica ley se observó un rápido crecimiento de las propuestas inmobiliarias en diversos portales
www.infobae.com
January 18, 2024
After the DNU that repealed the controversial law, a rapid growth of real estate proposals was observed on various portals
By Jose Luis Cieri
The rental supply began to grow in the city of Buenos Aires after DNU that repealed the Rental Law (Illustrative image Infobae)
Significant changes are beginning to be noticed in the supply of housing in Javier Milei 's Post DNU location , which repealed the Rental Law. Proposals in pesos and dollars experience daily growth, and according to a private analysis, there is a 25% year-on-year increase in the city of Buenos Aires. Apartments are now found in neighborhoods such as Agronomía, Mataderos and Parque Patricios, which more than 60 days ago did not have rental options.
The 25% increase is based on an average obtained from research carried out by Soledad Balayan of Maure Inmobiliaria. This analysis focuses on two prominent portals in the real estate segment: in Zonaprop, a 20% increase in rental proposals is observed when comparing January 2023 with the present, while in Argenprop the figure rises to 46% year-on-year.
The diversity of options, with free agreements and flexibility in adjustments, terms and currencies, is encouraging owners to offer their properties again. In Zonaprop, for example, the offer exceeds 8,100 apartments, with more than 1,200 three-room units, ideal for a typical family. This represents a notable change, since 60 days ago, there were barely more than 200 proposals, with 70% in dollars.
Published notices (Maure Inmobiliaria)
There are also 4-room units, more than 600, when in September there were only 150 in different Buenos Aires neighborhoods.
Currently, a 4-room is offered in Montiel and Ercilla, in the Naón neighborhood in Mataderos for $350,000 with semiannual adjustments by the Consumer Price Index (CPI), a three-room in Pedro Morán at 2300 in Agronomy, for $300,000 per month with a semiannual adjustment to through the Index of Lease Contracts and a three-room apartment in Alberti at 1800, Parque Patricios, for $400,000 per month and quarterly adjustment by CPI.
The ideal is to make agreements in pesos
Armando Pepe, a reference in the real estate sector, provides a constantly evolving panorama of the offer of rental properties. “On December 29, the effective date of the DNU, the offer increased without stopping. In a short period, on January 4, this number increased to 6,500, and subsequently, exceeding 7,400 units. The growth is constant and diversified in the offer, with 60% of the properties in dollars and 40% in pesos.”In this context, experts emphasize their recommendation to owners to make contracts in pesos, arguing that Argentines do not charge in foreign currency.
Source: Soledad Balayan of Maure Inmobiliaria
“So far in January we have lowered the price of two units published in pesos. The proposed term is 2 years with quarterly adjustments in some cases and every 4 months in others. The key question is the viability of these adjustments for tenants, considering that wages are not evolving at the same pace as inflation. In addition, January traditionally represents a month of lower activity in the real estate market, since many people choose to take vacations, especially those with greater purchasing power, given the seasonality of costs associated with travel in this month,” explained Balayan.
Real estate agencies warn that the market after three years begins to move in terms of rentals.
Marta Liotto, from Liotto Properties, highlighted the general trend of returning to the 24-month period stipulated by the Civil and Commercial Code. “The adjustments, agreed upon every three or six months, follow the evolution of the Consumer Price Index (CPI), contributing to the deceleration of the increases in initial values,” she said.
Starting prices and tips
In today's free market, experts agree that it is crucial to approach negotiations with openness to reach agreements. This implies the need for both parties to reach understandings on several key points.
The proposals on different portals grow daily
The intermediary plays a fundamental role by agreeing on contractual terms, providing comprehensive information to both parties and seeking the best fit between tenant, owner and property. Although the initial price is an important filter, it is not the only one, since various variables must be considered, especially given the level of freedom allowed by the DNU (adjustments can be agreed upon in pesos, dollars, euros, products, UVA, among others).
It is advisable that both owners and tenants review carefully before signing the contract. Regarding the currency of payment and updating of rental contracts, article 1199 establishes that rents may be established in legal tender or in foreign currency, according to the agreement of the parties. However, the tenant may not demand that payment be accepted in a currency other than that established in the contract.
Pepe noted: “Although prices did not drop too much, they are in the process of stabilization. I estimate that they will adjust, in a similar way to the dynamics of the tomato market. In situations where tomatoes are scarce, their price can reach $2,000 per kilo, then it drops to $700 and everything follows the law of supply and demand until equilibrium is reached.”
Experts point out that, if supply continues to increase, prices could experience sharp declines from the starting point in the near future.
“In some cases, initial values fell by up to 20%, confirming a clear sign that the market began its path to recovery. Although this trend varies in each neighborhood and area of the city, the first reactions indicate that several owners who had withdrawn their properties from the market are looking to put them up for rent again,” Liotto concluded.
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