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Rentals in AMBA: stable house prices and a 5% increase in apartment prices - Infobae
Source:
www.infobae.com
September 28, 2024
This is what emerges from a private survey, which also identified the neighborhoods and localities where properties for sale appreciated the most, with increases of up to 3.9 percent.
By Jose Luis Cieri
Plaza Las Carretas in Muñiz, one of the points with the greatest progress in construction and purchase and sale operations in the district of San Miguel
A private report confirmed that in August, the last month for which complete information is available, there was minimal variation in house rental prices and a 5% month-on-month increase in apartments in the Buenos Aires Metropolitan Area (AMBA).
Following the DNU that repealed the Rental Law, the housing supply increased by 200% when counting the city of Buenos Aires with the corridors of Greater Buenos Aires (GBA). This expansion contributed to the fact that rental prices did not have increases as pronounced as those observed until April, when the average increase was 10% per month. Currently, the increases are aligned with an inflation that began to slow down and for four months oscillated around 4 percent.
According to this study, carried out by Mercado Libre Inmuebles together with the University of San Andrés (UDESA), rental prices in pesos for apartments and houses in the AMBA experienced inter-monthly increases of 5.3% and 0.6%, respectively (see graph).
In contrast, apartments in these areas showed more significant increases, with inter-monthly variations in the price per square meter of 4.5% in CABA, 6.6% in GBA North, 5.6% in GBA South and 6.7% in GBA West.
According to the study, the monthly rent for a one-bedroom apartment in the AMBA is around $480,000, with the cheapest areas being GBA West and South, where prices average $380,000 per month. On the other hand, the rent for a two-bedroom apartment averages $550,000 and can be up to 25% less in the same areas.
Source: Mercado Libre Real Estate and University of San Andrés (UDESA)
Ariel Córdoba , from Córdoba Properties, highlighted to Infobae that “this resulted in an increase in supply of approximately 150% in the first few months, a significant expansion given the previous shortage. Although the initial supply percentage has decreased at this point, demand remains strong; in fact, any available unit is reserved almost immediately.”
Lease agreements are generally signed for two years with quarterly updates based on indices such as the Lease Agreement Index (LII) or the Consumer Price Index (CPI).
In this area, for example, a one-bedroom apartment of 45 square meters with a garage costs about $380,000 plus $65,000 in expenses. A two-bedroom apartment in the same tower costs $430,000 plus $85,000 in expenses.
Although the supply has increased, well-located apartments with balconies are rented quickly due to the pressure of demand (Photo Courtesy: Córdoba Properties)
“Prices increase if the building offers amenities. On the other hand, a two-bedroom duplex with a garage, patio and grill is rented for $485,000, and a four-room house with similar characteristics for $680,000 a month. Recently, in gated communities in Bella Vista, rental transactions with advance payments were registered that benefit both the owner and the tenant,” said Córdoba.
Source: Mercado Libre Real Estate and University of San Andrés (UDESA)
In contrast, GBA Norte experienced a slight drop of 0.3%, which shows a slowdown in the appreciation of properties in this area. As for GBA Sur and Oeste, the variations were almost insignificant, with 0.1% and 0.3% respectively, suggesting stability in these markets.
According to the study, in the GBA Norte, Vicente López and San Isidro lead the market value for apartments, with prices of USD 2,660 and USD 2,500 per m2, respectively. In the GBA Oeste, Ituzaingó and La Matanza lead the valuations with USD 1,735 and USD 1,500 per m2, while in the GBA Sur, Lomas de Zamora and Quilmes present the highest values, with USD 1,939 and USD 1,711 per m2 respectively.
Source: Mercado Libre Real Estate and University of San Andrés (UDESA)
In his analysis of the increase in real estate transactions, Santiago Magnin , from Deinmobiliarios and an expert in Real Estate, pointed out that the notable increase in the number of purchase and sale transactions is not justified by improvements in mortgage credit conditions, since these are still scarce. “Despite the opening of portfolios in banks, specific mortgage credit transactions are minimal. In this context, the increases observed in real estate activity seem to be more linked to a change in buyers' expectations.”
In 2024, an 8% year-on-year increase in closing prices in CABA is observed, both in August and July, according to reports made by Magnin.
“The reason behind these increases is attributed to savers, who, disillusioned with other investment alternatives and motivated by a change in expectations, decided to move their dollars towards the real estate market. This is reflected in an active sale of properties at considerably higher prices, especially in premium areas such as Recoleta and Núñez,” concluded Magnin.
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Source:
Alquileres en el AMBA: estabilidad en el precio de las casas y aumento del 5% en el de los departamentos
Así surge de relevamiento privado, que también identificó los barrios y localidades donde las propiedades en venta más se apreciaron, con incrementos de hasta el 3,9 por ciento
www.infobae.com
September 28, 2024
This is what emerges from a private survey, which also identified the neighborhoods and localities where properties for sale appreciated the most, with increases of up to 3.9 percent.
By Jose Luis Cieri
Plaza Las Carretas in Muñiz, one of the points with the greatest progress in construction and purchase and sale operations in the district of San Miguel
A private report confirmed that in August, the last month for which complete information is available, there was minimal variation in house rental prices and a 5% month-on-month increase in apartments in the Buenos Aires Metropolitan Area (AMBA).
Following the DNU that repealed the Rental Law, the housing supply increased by 200% when counting the city of Buenos Aires with the corridors of Greater Buenos Aires (GBA). This expansion contributed to the fact that rental prices did not have increases as pronounced as those observed until April, when the average increase was 10% per month. Currently, the increases are aligned with an inflation that began to slow down and for four months oscillated around 4 percent.
According to this study, carried out by Mercado Libre Inmuebles together with the University of San Andrés (UDESA), rental prices in pesos for apartments and houses in the AMBA experienced inter-monthly increases of 5.3% and 0.6%, respectively (see graph).
By regions
By region, rental prices per square meter of houses registered downward variations of -2.9% in GBA North, -0.1% in GBA South, and -0.3% in GBA West.
In contrast, apartments in these areas showed more significant increases, with inter-monthly variations in the price per square meter of 4.5% in CABA, 6.6% in GBA North, 5.6% in GBA South and 6.7% in GBA West.
According to the study, the monthly rent for a one-bedroom apartment in the AMBA is around $480,000, with the cheapest areas being GBA West and South, where prices average $380,000 per month. On the other hand, the rent for a two-bedroom apartment averages $550,000 and can be up to 25% less in the same areas.
At the nexus between the north and west of the GBA
Among the GBA parties, in San Miguel, since the implementation of the DNU, the owners showed a renewed interest in renting their properties, benefiting from the repeal of a law that did not favor them, according to reports from the real estate market.
Source: Mercado Libre Real Estate and University of San Andrés (UDESA)
Ariel Córdoba , from Córdoba Properties, highlighted to Infobae that “this resulted in an increase in supply of approximately 150% in the first few months, a significant expansion given the previous shortage. Although the initial supply percentage has decreased at this point, demand remains strong; in fact, any available unit is reserved almost immediately.”
Lease agreements are generally signed for two years with quarterly updates based on indices such as the Lease Agreement Index (LII) or the Consumer Price Index (CPI).
In this area, for example, a one-bedroom apartment of 45 square meters with a garage costs about $380,000 plus $65,000 in expenses. A two-bedroom apartment in the same tower costs $430,000 plus $85,000 in expenses.
Although the supply has increased, well-located apartments with balconies are rented quickly due to the pressure of demand (Photo Courtesy: Córdoba Properties)
“Prices increase if the building offers amenities. On the other hand, a two-bedroom duplex with a garage, patio and grill is rented for $485,000, and a four-room house with similar characteristics for $680,000 a month. Recently, in gated communities in Bella Vista, rental transactions with advance payments were registered that benefit both the owner and the tenant,” said Córdoba.
Reversal of the downward trend
In AMBA, price movements in the real estate market showed signs of stabilization and growth in some sectors according to Mercado Libre and UDESA. In CABA, a 1.5% inter-monthly increase was observed in the sale price per m2 of apartments, consolidating an upward trend that indicates a recovery of the market. And a 3.9% year-on-year increase in apartments (see chart).
Source: Mercado Libre Real Estate and University of San Andrés (UDESA)
In contrast, GBA Norte experienced a slight drop of 0.3%, which shows a slowdown in the appreciation of properties in this area. As for GBA Sur and Oeste, the variations were almost insignificant, with 0.1% and 0.3% respectively, suggesting stability in these markets.
According to the study, in the GBA Norte, Vicente López and San Isidro lead the market value for apartments, with prices of USD 2,660 and USD 2,500 per m2, respectively. In the GBA Oeste, Ituzaingó and La Matanza lead the valuations with USD 1,735 and USD 1,500 per m2, while in the GBA Sur, Lomas de Zamora and Quilmes present the highest values, with USD 1,939 and USD 1,711 per m2 respectively.
Good signs
The real estate sector highlights that the improvement in activity is essential. In CABA, almost 5,000 notarial acts were carried out in July , which represents a year-on-year increase of 50 percent. Meanwhile, in the province of Buenos Aires, 9,449 deeds were recorded in the same month, an increase of 16.40% compared to the 8,117 deeds in July 2023. Both Notary Associations of the most important districts in the country confirmed this data.
Source: Mercado Libre Real Estate and University of San Andrés (UDESA)
In his analysis of the increase in real estate transactions, Santiago Magnin , from Deinmobiliarios and an expert in Real Estate, pointed out that the notable increase in the number of purchase and sale transactions is not justified by improvements in mortgage credit conditions, since these are still scarce. “Despite the opening of portfolios in banks, specific mortgage credit transactions are minimal. In this context, the increases observed in real estate activity seem to be more linked to a change in buyers' expectations.”
In 2024, an 8% year-on-year increase in closing prices in CABA is observed, both in August and July, according to reports made by Magnin.
“The reason behind these increases is attributed to savers, who, disillusioned with other investment alternatives and motivated by a change in expectations, decided to move their dollars towards the real estate market. This is reflected in an active sale of properties at considerably higher prices, especially in premium areas such as Recoleta and Núñez,” concluded Magnin.
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