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Rentals for the middle class: How much do 3-room apartments cost and in which Buenos Aires neighborhoods there is the greatest offer - Infobae
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January 3, 2024
In some areas the lack of units is evident. Which are the areas that experienced the largest and smallest increases in rental prices in the city of Buenos Aires?
By José Luis Cieri
Little by little, the supply begins to gradually react in the city of Buenos Aires, although with high values (Photo Courtesy: Aldea Urbana Negocios Inmobiliarios)
Since the new Government led by Javier Milei issued the presidential Decree of Necessity and Urgency (DNU) repealing the Rental Law , a gradual increase has been observed in the presence of three-room apartments in the real estate offer of the city of Buenos Aires. This phenomenon seeks to attract middle class families with one or two children who are looking to move into a home with two bedrooms.
According to the Scalabrini Ortiz Center for Economic and Social Studies (CESO), 3-room apartments experienced the greatest increase, reaching 308.7% year-on-year until last December.
With an average cost of $470,000 in CABA, these numbers are inaccessible for salaried workers looking to rent, especially considering expenses that exceed $40,000 per month. Maintaining a home you do not own requires a considerable financial effort.
“The notable year-on-year increase in three-bedroom properties in CABA is not only attributed to the lack of supply in the current market, but also to the status of a trendy neighborhood in recent years. There are areas such as Chacarita, Almagro or Villa del Parque, among others, that experienced significant tourist growth thanks to their cultural attractions, diversity of gastronomic and artistic places, as well as their large green areas, standing out as a fusion between tradition and modernity. ”, Gustavo Lo Valvo, from the homonymous real estate company, highlighted to Infobae.
The month-on-month increase according to the CESO for three-bedroom apartments was 23.7%, and nothing is achieved for less than $250,000 per month
Experts noticed an increase in inquiries from owners interested in reverting their properties to the traditional rental modality, opting for deregulated frameworks. This trend is manifested with rental agreements limited to a maximum of two years in duration from this moment and through the Civil and Commercial Code.
Areas without offer
Currently, several neighborhoods in CABA have a lack of offers in pesos for rentals of three-room apartments. These include Agronomy, Colegiales, Mataderos, Versalles, Villa Pueyrredón, La Boca, Parque Patricios, Saavedra, Chacarita, among others.Darío Tellería, from a real estate agency in the Floresta area, said that “the supply of three-room apartments is limited, and the demand directed at this segment is very broad. Consequently, the availability of properties of this type for rent is scarce, leading owners to request higher rental amounts compared to other categories.”
During the last quarter, the responsibility for the situation of the lack of three-room units fell on temporary rentals. Now, with the recent repeal of the law, it is observed that properties previously offered in foreign currency are being advertised in pesos, but using the value of the dollar bill.
“This change could result in future statistics that reflect a greater supply, although with truly exorbitant values. These new laws continue to generate distortions,” said Lo Valvo.
Areas such as Paternal (photo) or Agronomía do not currently have availability of three-room apartments among the traditional rental offering.
Although other voices contradict the previous belief, temporary rentals are not responsible for the crisis in residential rentals. The incidence of the number of tourist rentals is not so significant.
Tellería expanded: “The publication of temporary amounts in pesos creates confusion among consumers and, without a doubt, will have an impact on residential rental prices. The combination of the current and the previous rental law, together with inflation and the crisis in the macroeconomy, generated a fatal cocktail for the residential rental market.”
Despite the current situation, there is confidence in the segment that the trend will gradually reverse. It is expected that the DNU and free agreements between parties will contribute to the progressive recovery of supply. Before the implementation of the Rental Law in June 2020, approximately 9,000 properties in pesos were registered in all neighborhoods per month and the turnover was constant.
Today, that number has dropped to around 850, although they are not evenly distributed throughout the city.
Values
According to the Real Estate Report, these are the average prices and the areas where you can find three-room apartments (that exceed 70 square meters in area):Palermo: $550,000.
Recoleta: $475,000.
Núñez: $455,000.
Belgrano: $450,000
Horse: $450,000
Villa Crespo: $450,000.
Almagro: $435,000.
Villa Urquiza: $430,000.
Northern Neighborhood: $410,000.
Villa Luro: $360,000
Flowers: $335,000.
Barracks: $300,000.
Monserrat: $290,000.
San Telmo: $280,000.
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