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Rentals in danger of extinction: there are less than 450 apartments listed in the city of BA - La Nación
Source:
www.lanacion.com.ar
September 06, 2023
By: Mercedes Soriano
In August only 448 used apartments were published in the Real Estate Report and the trend is going to zero
The hanging posters are already a vintage postcard in the city because the apartments are reserved as soon as they are published on the real estate listing portals; In August only 448 used apartments were published in Real Estate Report and the trend is going to zero.
In the midst of discussions to modify the rental law , the market in the city of Buenos Aires screams for help with its last breaths before its imminent danger of extinction. August closed with alarming figures : "The number of used apartments from one to four rooms available for rent, which were published in property search engines, was only 448 units ," says a recent report by Real Estate Report.
From the entity they indicated that the few units that are published "do so with prices that exceed past inflation and add an additional to the future projected as a direct consequence of the legal limitation imposed by current law that requires a single adjustment year-on-year price”, they detailed. The Survey of Market Expectations prepared by the Central Bank forecasts year-on-year inflation of 160%.
In the last year, the general average of the departments of all types, 208% year-on-year. The average prices by type are:
The 2 bedroom apartments were the ones that increased their rental prices the most in the market, according to the Real Estate Report
In this context, the senators met this Wednesday to hear the opinion of specialists and representatives of tenants, owners and real estate chambers. This process is nothing new, since last year multiple meetings were held over two months in an attempt to obtain valuable information to resolve the problem.
Meanwhile, the rental offer is abysmally different from the sale offer. Since the enactment of the rental law in 2020, the stock for sale has grown exponentially because the owners decided to remove their properties from rental and put them up for sale.
"While there are apartments for sale in 54 neighborhoods of CABA, only 14 have one-bedroom rental units, 19 have two-bedrooms, 11 have two-bedrooms, and only three for four-bedroom units , " alert from the entity that this 2023 completed 20 years of research in the field.
The paradox is that the salaries are not, and among the social discontent due to the difficulty in finding a place to live added to the proposal to dollarize the national economy of the candidate for president Javier Milei, the irony in this regard does not stop appearing on networks social.
This is demonstrated by the Tiktok video posted by @narraman, a young man who shows how on the market map, the few available units are offered in foreign currency . "Someone must be wrong... the algorithm that thinks Milei won or my salary," questions the user of the social network when showing a two-room apartment published for US$800 . And he asks himself the same question that many tenants ask themselves: “What work do people do that can pay for this?”
www.buysellba.com
Source:
Alquileres en peligro de extinción: quedan menos de 450 departamentos publicados en la ciudad
En agosto solamente se publicaron 448 departamentos usados en Reporte Inmobiliario y la oferta tiende a cero
www.lanacion.com.ar
September 06, 2023
By: Mercedes Soriano
In August only 448 used apartments were published in the Real Estate Report and the trend is going to zero
The hanging posters are already a vintage postcard in the city because the apartments are reserved as soon as they are published on the real estate listing portals; In August only 448 used apartments were published in Real Estate Report and the trend is going to zero.
In the midst of discussions to modify the rental law , the market in the city of Buenos Aires screams for help with its last breaths before its imminent danger of extinction. August closed with alarming figures : "The number of used apartments from one to four rooms available for rent, which were published in property search engines, was only 448 units ," says a recent report by Real Estate Report.
From the entity they indicated that the few units that are published "do so with prices that exceed past inflation and add an additional to the future projected as a direct consequence of the legal limitation imposed by current law that requires a single adjustment year-on-year price”, they detailed. The Survey of Market Expectations prepared by the Central Bank forecasts year-on-year inflation of 160%.
In the last year, the general average of the departments of all types, 208% year-on-year. The average prices by type are:
- Studio apartments: $171,250 and registered a year-on-year increase of 211.36%.
- 1 Bedrooms: $212,500 and increased 226.92% in the last year.
- 2 Bedrooms: $275,000 and they were the ones that increased in price the most in the last 12 months with a jump of 243.75%.
- 3 Bedrooms: $292.000 and increased by 148.51% year-on-year.
The 2 bedroom apartments were the ones that increased their rental prices the most in the market, according to the Real Estate Report
In this context, the senators met this Wednesday to hear the opinion of specialists and representatives of tenants, owners and real estate chambers. This process is nothing new, since last year multiple meetings were held over two months in an attempt to obtain valuable information to resolve the problem.
Meanwhile, the rental offer is abysmally different from the sale offer. Since the enactment of the rental law in 2020, the stock for sale has grown exponentially because the owners decided to remove their properties from rental and put them up for sale.
"While there are apartments for sale in 54 neighborhoods of CABA, only 14 have one-bedroom rental units, 19 have two-bedrooms, 11 have two-bedrooms, and only three for four-bedroom units , " alert from the entity that this 2023 completed 20 years of research in the field.
A tenant's nightmare
The prices are another red alert for those who want to rent. More than 120,000 contracts will expire before the end of the year, and tenants facing the deadline are in for another bad news: most listings are dollarized .The paradox is that the salaries are not, and among the social discontent due to the difficulty in finding a place to live added to the proposal to dollarize the national economy of the candidate for president Javier Milei, the irony in this regard does not stop appearing on networks social.
This is demonstrated by the Tiktok video posted by @narraman, a young man who shows how on the market map, the few available units are offered in foreign currency . "Someone must be wrong... the algorithm that thinks Milei won or my salary," questions the user of the social network when showing a two-room apartment published for US$800 . And he asks himself the same question that many tenants ask themselves: “What work do people do that can pay for this?”
www.buysellba.com
