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Rentals: High prices persist throughout the country, but supply increased by 130 percent - Infobae
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Alquileres: en todo el país persisten los precios altos, pero la oferta aumentó un 130 por ciento
La desaceleración de los valores iniciales de alquiler, de entre 10% y 15% desde la implementación del DNU, refleja un cambio en el mercado. A medida que la oferta y la demanda se van equilibrando, los aumentos para nuevos contratos se moderan. La situación en CABA y otras ciudades del país
www.infobae.com
March 30, 2024
The slowdown in initial rental values, between 10% and 15% since the implementation of the DNU, reflects a change in the market. As supply and demand balance, increases for new contracts moderate. The situation in CABA and other cities in the country
By José Luis Cieri
Balcony that overlooks Plaza Güemes, in La Plata, close to Avenidas 19 and 38. In the capital of the province of Buenos Aires, the supply of housing for rent increased post-DNU
Despite the Senate's rejection of the Government's DNU, pending resolution in the Chamber of Deputies, the measure promoted by Javier Milei remains in force.
This measure, which began to be implemented last December, aroused the interest of owners, who are gradually reintegrating their properties into the rental market throughout the country.
It is estimated that the general offer increased by 130% year-on-year on average in several places. The owners recognize that the post-DNU agreements, under the Civil and Commercial Code, allow more flexible negotiations in terms of adjustment methods and deadlines, compared to the previous Rental Law, repealed since December 29.
Compared to the pre-DNU period, initial rental prices were adjusted more flexibly. Owners are willing to agree to more frequent adjustments, allowing properties to be listed at lower prices.
Although a decrease of between 10% and 15% in rental values was observed in various cities in the interior of the country, these remain high due to the disparity in the income of employees compared to the city of Buenos Aires and Greater Buenos Aires, where salaries are 20% higher on average.
What happens to rents in Buenos Aires
Since the DNU came into force, in La Plata and other cities in the province of Buenos Aires the supply of rental properties has multiplied by more than 150%, a notable difference considering that until the end of the year the supply was practically nil.Several owners opted for traditional rental instead of temporary rental, returning their properties to the housing rental market.
The index most used to adjust contracts in the province is the Lease Contract Index (ICL)
A three-bedroom apartment in La Plata with a garage starts at $250,000 per month
Mirta Líbera , president of the Real Estate Chamber of the province of Buenos Aires, highlighted to Infobae that a lot of work is being done on the management and intermediation approach. “It is important that each tenant clearly understands the terms of the contract, ensuring that both parties are committed to compliance and updating.”
To provide some perspective on prices in the province, which naturally vary between larger cities and towns, some examples can be offered. A mid-level three-bedroom house well located within a semi-central radius ranges between $320,000 and $380,000, depending on its characteristics.
A three-room apartment with a garage is in the range of $250,000 to $300,000, also depending on its features. Studio apartments are priced between $150,000 and $220,000, while standard two-bedroom apartments are in the range of $200,000 to $250,000 per month.
“Prices escalate for four-bedroom and superior quality apartments by at least 30% more from now on,” added Líbera.
Panorama in the Docta
Something similar happens in the city of Córdoba, where the increase in the supply of real estate represents 68% year-on-year.Alejandro Hadrowa , president of the Professional Association of Public Real Estate Brokers of Córdoba, pointed out that “in addition, there is a 70% increase in the number of rental contracts signed compared to the previous year, which suggests greater activity in the market".
This increase reflects changing market dynamics and offers more options for potential tenants.
Tenants who are looking for a home have the possibility to choose between various options now in Córdoba capital (Photo Courtesy: Turismo de Córdoba)
“With the increase in the supply of real estate, a downward trend is observed in the closing prices of contracts signed from December to date. This situation benefits the real estate market, since it makes it easier to conclude contracts and increases the availability of properties for rent within the context of high inflation,” said Hadrowa.
A two-room apartment in the center of the capital of Córdoba costs $250,000 and a three-room apartment costs $350,000 per month.
Rosario transformation
In recent days, there has been constant growth in the supply of traditional rental homes in Rosario, especially in the apartment segment, where the greatest availability is concentrated.Real estate professionals advise tenants to carry out a detailed financial analysis when comparing the conditions of the different properties offered for rent. “In this new scenario, it is essential that they look for and analyze alternatives, since the disparity in the prices of similar properties is significant,” explained Diego Ferreyra, of Diego Ferreyra Bienes Raíces.
In Rosario the supply of apartments is constantly increasing. However, in the city neighborhoods where houses predominate, the increase in supply was less pronounced due to the higher maintenance cost of this type of units.
In year-on-year terms, the supply of rental homes in Rosario tripled according to data from the Propia portal by 179%: going from 600 in July 2023 to 1,672 in current March.
Regarding current rental values, the trend is upward, although with variations depending on the type of property. Ferreyra exemplified: “Single-room apartments went from an average of $110,000 to $140,000, while three-room apartments increased from $190,000 to $240,000 per month. In the case of houses, where the supply is lower, prices start from $200,000 for those without a garage, and from $300,000 for those with a garage and patio.”
Red earth
Since the entry into force of the DNU, there has been a notable increase in the supply of properties in the rental market of Posadas, in the province of Misiones.Jorge Ferreira , president of the Misiones Real Estate Chamber, said that “the owners show a good spirit to return to the market those properties that they had stopped renting and that had been put up for sale, now choosing to offer them again for rent.”
Tenants, aware of their need to access housing, are mostly willing to accept the conditions required to finalize the location.
“It is explained to them that this freedom of contract, which allows for more open negotiation, is beneficial for both the landlord and the tenant, and both parties find this new system of free negotiation reasonable,” added Ferreira.
Regarding location values, these increase according to monthly inflation indices, the use of the ICL predominates and they vary depending on the location and quality of construction.
In the city of Posadas, two-room apartments range between $100,000 and $200,000, while three-room apartments range between $200,000 and $300,000 per month. For their part, three-room houses without a garage have a price ranging from $300,000 to $400,000, and those with a garage are between $400,000 and $500,000 per month.
Southern scenario
Since the implementation of the DNU, the real estate market in Ushuaia is going through significant changes.Sergio Arroquy , president of the Supervisory Commission of the Professional Association of Auctioneers, Appraisers and/or Brokers of Tierra del Fuego, said that “greater freedom in negotiations generates a more fluid relationship between both parties, allowing tenants to have greater ability to choose and reject those conditions that are not favorable to them.”
Faced with this new market dynamic, real estate professionals advise tenants to analyze the conditions of the contracts freely and propose the necessary changes to reach fair agreements and have everything recorded in writing.
In the capital of Tierra del Fuego, in addition to the proposals in real estate agencies, there is a large presence of a greater number of advertisements on social networks and the unanimous testimony of clients confirms this trend, suggesting a notable increase in the offer compared to three years ago. months.
“Rental values are moving towards stabilization in starting point prices in recent weeks, remaining at the same level as two or three months ago,” said Arroquy.
Three-room apartments range between $470,000 per month in the periphery and $600,000 in the center of Ushuaia, while three-room houses with a patio and open space can reach $750,000, depending on the location and construction characteristics.
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