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Rentals: CABA Apartments for Sale Rise from 500 to 15,000, Dollar Prices Drop to 51% - Infobae
Source:
www.infobae.com
September 15, 2024
This emerges from a private real estate report that also specifies the values of one-bedroom units in the Buenos Aires neighborhoods where there is supply.
By Jose Luis Cieri
Although the supply of properties in pesos has increased, there is still a high percentage of homes in CABA that are offered for contracts in dollars (Illustrative Image Infobae)
Although the Rental Law was repealed 9 months ago, there is still a high percentage of apartment advertisements in the city of Buenos Aires that are offered for rent and for contracts in dollars.
A private report found that of the total of 15,000 units available in the different neighborhoods of Buenos Aires, 51% of the listings are in dollars. Although the DNU that deregulated the market, enabling free agreements between the parties, allowed thousands of owners to offer properties for rent again, usually for a two-year term, the situation changed drastically compared to September 2023, when the offer at this point was 90% in dollars and there were less than 500 apartments in pesos in CABA.
Zonaprop, which conducted the analysis, confirmed that currently the rental notices published in dollars represent 51% of the offer on the portal for one-bedroom apartments, while the remaining 49% are in pesos.
The report indicates that while in the first two months of 2024 the majority of apartments were listed in dollars, between March and June the offer in pesos had an upward trend. However, despite the fact that a balance was reached in July, in August there was a slight increase in the offer in dollars.
Juan Bautista Arnaude , head of Arnaude Brokers, told Infobae : “A high percentage of property owners continue to have more confidence in dollarizing their rental contracts. Some of them are confident that the Argentine economy will move, in the medium term, towards a bimonetary scheme. They believe that the best way to protect themselves is by making a contract in dollars, payable in dollar bills, and practically neutralizing possible devaluations.”
Source: Zonaprop
The reasons behind this trend are related to the search by owners to protect their income against the volatility of the Argentine peso, in addition to the fact that the new regulatory framework for contracts allows it.
Ethel Casabona of Century 21 Casabona explained: “I believe that by setting rents in dollars, landlords believe they can protect their income. Considering the dollar as a more stable currency than the Argentine peso, keeping rents in dollars offers a sense of security for landlords and this also allows them to save or invest in assets that do not depreciate with inflation.”
Puerto Madero has remained in the ranking of the most expensive neighborhoods for rent for more than two years. A one-bedroom apartment is rented for USD 1,393 per month. Palermo is the second neighborhood with the most expensive offer, costing USD 834 per month.
Dario Rizzo , from Alternativa Properties, explained: “In the case of a 2-room apartment, the average prices are as follows: short-term rental or relocation (from 1 month to 1 year), USD 850 per month; while traditional housing rentals (2-year agreement) average USD 385 per month.”
For three-room units, prices average between USD 500 and USD 600 per month, approximately, depending on the area; these are reference values. As the supply of rental units has increased (after the Rental Law was repealed), prices have dropped in several cases.
Two-bedroom apartments average between USD 500 and USD 600 in CABA for long-term agreements
Arnaude added: “Several temporary rental units are no longer in demand as they once were with a more favourable exchange rate. This has led to them being allocated to long-term contracts, which is driving down prices in some cases. However, smaller units are still in high demand.”
On the other hand, 88% of the neighborhoods registered a fall in average rental prices in dollars. San Telmo presents a 20% drop in prices year-on-year and an apartment is rented for 702 dollars per month, confirmed Zonaprop. San Nicolás follows, with an average price of USD 594 per month, 19% less than a year ago.
Generally, all contracts are made in dollar bills or their equivalent on the date of payment of the rent.
www.buysellba.com
Rental properties in Puerto Madero maintain stable average values. In August, a one-bedroom apartment in this neighborhood is priced at USD 1,393 per month, just 0.81% more than in the same month in 2023.
"The neighborhoods with the highest demand for rentals in dollars and with the highest market prices are those with tourist demand or close to downtown Buenos Aires, with access to areas with great gastronomic and commercial offerings, such as Palermo, Recoleta, Puerto Madero, Belgrano," said Casabona.
As for the neighborhoods with the lowest demand, there are Monserrat, Villa Crespo and Microcentro. Casabona added: “The most affordable are Flores, Monte Castro, Mataderos, Liniers and even more so if you consider renting them in foreign currency.”
If the apartments offered are for temporary agreements, they must be equipped and furnished.
Rizzo explained: “Prices in dollars are maintained for short-term and tourist rentals, which range from one month to one year. Since these are short-term contracts, indexation does not have as much of an impact. For daily rentals, such as Airbnb, indexation is not necessary. For six-month rentals, a fixed value is agreed upon and is updated by 10% upon renewal; for one-year contracts, the value is fixed in dollars.”
Traditional guarantees are not required; there are insurance policies that protect both parties. On platforms such as Airbnb, guarantees cover the owner's assets and assure the tenant of the services offered, included in the price and charged to both parties.
“If the agreements are usually two years long, a guarantee or surety bond, a month's deposit and one month in advance are usually required,” said Arnaude.
Puerto Madero: USD 1,393.
Palermo: USD 834.
Colegiales: USD 812.
Nuñez: USD 785.
Belgrano: USD 770.
Montserrat: USD 730.
Recoleta: USD 709.
San Telmo: USD 702.
Retiro: USD 689.
Chacarita: USD 658.
Villa Urquiza: USD 650.
Villa Crespo: USD 630.
Almagro: USD 627.
San Nicolas: USD 594.
Caballito: USD 593.
Balvanera: USD 537.
Villa Ortúzar: USD 529.
Source:
Alquileres: el número de departamentos en oferta en CABA aumentó de 500 a 15.000 y la proporción de precios en dólares cayó del 90 al 51 por ciento
Así surge de un informe inmobiliario privado que también precisa valores de las unidades de dos ambientes en los barrios porteños donde hay oferta
www.infobae.com
September 15, 2024
This emerges from a private real estate report that also specifies the values of one-bedroom units in the Buenos Aires neighborhoods where there is supply.
By Jose Luis Cieri
Although the supply of properties in pesos has increased, there is still a high percentage of homes in CABA that are offered for contracts in dollars (Illustrative Image Infobae)
Although the Rental Law was repealed 9 months ago, there is still a high percentage of apartment advertisements in the city of Buenos Aires that are offered for rent and for contracts in dollars.
A private report found that of the total of 15,000 units available in the different neighborhoods of Buenos Aires, 51% of the listings are in dollars. Although the DNU that deregulated the market, enabling free agreements between the parties, allowed thousands of owners to offer properties for rent again, usually for a two-year term, the situation changed drastically compared to September 2023, when the offer at this point was 90% in dollars and there were less than 500 apartments in pesos in CABA.
Zonaprop, which conducted the analysis, confirmed that currently the rental notices published in dollars represent 51% of the offer on the portal for one-bedroom apartments, while the remaining 49% are in pesos.
The report indicates that while in the first two months of 2024 the majority of apartments were listed in dollars, between March and June the offer in pesos had an upward trend. However, despite the fact that a balance was reached in July, in August there was a slight increase in the offer in dollars.
Juan Bautista Arnaude , head of Arnaude Brokers, told Infobae : “A high percentage of property owners continue to have more confidence in dollarizing their rental contracts. Some of them are confident that the Argentine economy will move, in the medium term, towards a bimonetary scheme. They believe that the best way to protect themselves is by making a contract in dollars, payable in dollar bills, and practically neutralizing possible devaluations.”
Source: Zonaprop
The reasons behind this trend are related to the search by owners to protect their income against the volatility of the Argentine peso, in addition to the fact that the new regulatory framework for contracts allows it.
Ethel Casabona of Century 21 Casabona explained: “I believe that by setting rents in dollars, landlords believe they can protect their income. Considering the dollar as a more stable currency than the Argentine peso, keeping rents in dollars offers a sense of security for landlords and this also allows them to save or invest in assets that do not depreciate with inflation.”
How much does it cost to rent?
The average price of advertisements in dollars to rent a one-bedroom apartment in CABA, according to Zonaprop, is USD 586 (a value that has decreased by 6% since August 2023).Puerto Madero has remained in the ranking of the most expensive neighborhoods for rent for more than two years. A one-bedroom apartment is rented for USD 1,393 per month. Palermo is the second neighborhood with the most expensive offer, costing USD 834 per month.
Dario Rizzo , from Alternativa Properties, explained: “In the case of a 2-room apartment, the average prices are as follows: short-term rental or relocation (from 1 month to 1 year), USD 850 per month; while traditional housing rentals (2-year agreement) average USD 385 per month.”
For three-room units, prices average between USD 500 and USD 600 per month, approximately, depending on the area; these are reference values. As the supply of rental units has increased (after the Rental Law was repealed), prices have dropped in several cases.
Two-bedroom apartments average between USD 500 and USD 600 in CABA for long-term agreements
Arnaude added: “Several temporary rental units are no longer in demand as they once were with a more favourable exchange rate. This has led to them being allocated to long-term contracts, which is driving down prices in some cases. However, smaller units are still in high demand.”
Which ones rose the most
Colegiales is the neighborhood with the highest increase in average price, with a year-on-year variation of 6.63%; in August 2023, the rent for a two-room apartment was USD 762 per month and today it costs USD 812 per month.On the other hand, 88% of the neighborhoods registered a fall in average rental prices in dollars. San Telmo presents a 20% drop in prices year-on-year and an apartment is rented for 702 dollars per month, confirmed Zonaprop. San Nicolás follows, with an average price of USD 594 per month, 19% less than a year ago.
Demand and contract dynamics
The public looking for units in dollars is varied: from tourists who come to visit CABA, to families who need to make a long-term contract to generate greater stability over time.Generally, all contracts are made in dollar bills or their equivalent on the date of payment of the rent.
www.buysellba.com
Rental properties in Puerto Madero maintain stable average values. In August, a one-bedroom apartment in this neighborhood is priced at USD 1,393 per month, just 0.81% more than in the same month in 2023.
"The neighborhoods with the highest demand for rentals in dollars and with the highest market prices are those with tourist demand or close to downtown Buenos Aires, with access to areas with great gastronomic and commercial offerings, such as Palermo, Recoleta, Puerto Madero, Belgrano," said Casabona.
As for the neighborhoods with the lowest demand, there are Monserrat, Villa Crespo and Microcentro. Casabona added: “The most affordable are Flores, Monte Castro, Mataderos, Liniers and even more so if you consider renting them in foreign currency.”
If the apartments offered are for temporary agreements, they must be equipped and furnished.
Rizzo explained: “Prices in dollars are maintained for short-term and tourist rentals, which range from one month to one year. Since these are short-term contracts, indexation does not have as much of an impact. For daily rentals, such as Airbnb, indexation is not necessary. For six-month rentals, a fixed value is agreed upon and is updated by 10% upon renewal; for one-year contracts, the value is fixed in dollars.”
Traditional guarantees are not required; there are insurance policies that protect both parties. On platforms such as Airbnb, guarantees cover the owner's assets and assure the tenant of the services offered, included in the price and charged to both parties.
“If the agreements are usually two years long, a guarantee or surety bond, a month's deposit and one month in advance are usually required,” said Arnaude.
By zones
Below are the rental prices by neighborhood in CABA according to Zonaprop for two-room apartments of 50 m2:Puerto Madero: USD 1,393.
Palermo: USD 834.
Colegiales: USD 812.
Nuñez: USD 785.
Belgrano: USD 770.
Montserrat: USD 730.
Recoleta: USD 709.
San Telmo: USD 702.
Retiro: USD 689.
Chacarita: USD 658.
Villa Urquiza: USD 650.
Villa Crespo: USD 630.
Almagro: USD 627.
San Nicolas: USD 594.
Caballito: USD 593.
Balvanera: USD 537.
Villa Ortúzar: USD 529.
