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Rentals in total crisis: The supply in CABA plummeted almost 75% - Infobae
![1703710847616.png 1703710847616.png](https://www.expatsba.com/data/attachments/1/1068-bf057a97619be636cb55819c0e02466d.jpg)
Source:
www.infobae.com
November 08, 2023
By José Luis Cieri
This was confirmed by a private analysis that detected that there are less than 550 apartments for traditional rental contracts in local currency.
Achieving rent is the first objective today. The supply collapsed by 74.27% in one year (Illustrative image Infobae)
The search for rentals throughout the country has been, for months, a real challenge amidst prices that have been experiencing notable increases. According to recent data, the number of used 1 to 3 room apartments available for rent, published on property search engines, was drastically reduced, reaching less than 550 units in the city of Buenos Aires.
This was confirmed by a private survey. This current figure represents a decrease of 14.3% compared to the previous month and is barely a quarter of what existed a year ago, when the supply of apartments for rent reached 2,068 units. In this way, the drop in the supply of apartments with similar characteristics reached a sharp decrease of 74.27% last October compared to the same month in 2022.
In the last 41 months, the formal supply of housing for long-term agreements has decreased drastically since the implementation of the Rental Law. This reduction is largely due to the extension of the duration of the contracts and the only annual price update based on the Lease Contract Index (ICL), which does not keep pace with inflation. The acceleration of this economic decoupling since the middle of last year aggravated the situation, causing harm to the owners.
“In the last month, the situation became even more critical, as changes were made to the law that increased uncertainty. Although the update period was shortened and the index was changed in the final equation of a three-year contract, at best, the result remains equivalent for the owner, and may even be even more detrimental than the index coefficient. previous update. These measures further complicated the situation in the rental market,” José Rozados from the Reporte Inmobiliario portal, who prepared the sector report, told Infobae.
Buenos Aires offers of 1 estudio
In October, those looking to rent or change their location in CABA found themselves with few options: only 158 studio apartments, 262 two-bedroom apartments and 103 three-bedroom apartments in the entire city.
Rozados expanded: “The situation is extremely critical and must be faced with greater responsibility. In the short term, there are no specific measures that can generate the necessary increase in supply, unless they are supported by macroeconomic decisions that provide greater stability and confidence in the future, especially for owners willing to put their properties on the market. rent. The outlook is further aggravated due to the current legal uncertainty, which discourages investments in construction that could increase the supply of rental housing. The ideal solution could involve reviewing current rental legislation, allowing for quarterly updates based on the Consumer Price Index (CPI), while addressing the real trigger of the problem: inflation.”
Two-bedroom alternatives
Oscar Puebla, an architect specialized in Real Estate, told Infobae that the law and its recent reform have generated problems. “It would be ideal to implement a mechanism that allows short-term rental agreements between landlords and tenants, as otherwise the supply will become even more complicated,” he said.
Likewise, a growing trend is observed in which prices in all neighborhoods have increased more than 200% year-on-year.
Three bedrooms (Source: Real Estate Report)
In October, the average rent for a one-bedroom apartment reached $187,350 per month, while a two-bedroom apartment had an average cost of $248,000 per month. On the other hand, three-room apartments offered for rent registered an average of $311,400 per month.
To address this situation, there is hope that the future national government, either under Sergio Massa (Unión por la Patria), thinks about regulations by districts, or Javier Milei (La Libertad Avanza), will propose a new law that allows agreements two years and flexibility in agreements between owners and tenants.
“However, it should be noted that mortgage credit is considered the main tool to alleviate rental demand. Although in the current circumstances, establishing sustainable lines of credit is an insurmountable challenge, given the macroeconomic conditions and the income levels of the population in general,” concluded Rozados.
www.buysellba.com
![1703710847616.png 1703710847616.png](https://www.expatsba.com/data/attachments/1/1068-bf057a97619be636cb55819c0e02466d.jpg)
Source:
![www.infobae.com](/proxy.php?image=https%3A%2F%2Fwww.infobae.com%2Fnew-resizer%2FYQN8pLTizAEVg57L5MBpULXPQ9I%3D%2F1200x630%2Ffilters%3Aformat%28webp%29%3Aquality%2885%29%2Fcloudfront-us-east-1.images.arcpublishing.com%2Finfobae%2F4CEOHJ2QG5FKPJQ3347JCRM7BU.jpg&hash=55528a3fba6b01f43ca7f67bb3b371ff&return_error=1)
Alquileres en crisis total: la oferta de departamentos en CABA se desplomó casi 75% y hay barrios que tienen cero opciones en pesos
Así lo confirmó un análisis privado que detectó que hay menos de 550 departamentos para contratos de locación tradicional en moneda local
![www.infobae.com](/proxy.php?image=https%3A%2F%2Fwww.infobae.com%2Fpf%2Fresources%2Ffavicon%2Ffavicon-16x16.png%3Fd%3D1775&hash=2b15c56eb71d7903dbd5e74e16d0f21c&return_error=1)
November 08, 2023
By José Luis Cieri
This was confirmed by a private analysis that detected that there are less than 550 apartments for traditional rental contracts in local currency.
![rs=w:1280](/proxy.php?image=https%3A%2F%2Fimg1.wsimg.com%2Fisteam%2Fip%2Fc96a1142-f964-4cab-81a4-12667f2eb206%2Fnot%25201%25208-11.webp%2F%3A%2Fcr%3Dt%3A0%2525%2Cl%3A0%2525%2Cw%3A100%2525%2Ch%3A100%2525%2Frs%3Dw%3A1280&hash=e49188f5d47a68816ae803ead78cd1fd)
Achieving rent is the first objective today. The supply collapsed by 74.27% in one year (Illustrative image Infobae)
The search for rentals throughout the country has been, for months, a real challenge amidst prices that have been experiencing notable increases. According to recent data, the number of used 1 to 3 room apartments available for rent, published on property search engines, was drastically reduced, reaching less than 550 units in the city of Buenos Aires.
This was confirmed by a private survey. This current figure represents a decrease of 14.3% compared to the previous month and is barely a quarter of what existed a year ago, when the supply of apartments for rent reached 2,068 units. In this way, the drop in the supply of apartments with similar characteristics reached a sharp decrease of 74.27% last October compared to the same month in 2022.
In the last 41 months, the formal supply of housing for long-term agreements has decreased drastically since the implementation of the Rental Law. This reduction is largely due to the extension of the duration of the contracts and the only annual price update based on the Lease Contract Index (ICL), which does not keep pace with inflation. The acceleration of this economic decoupling since the middle of last year aggravated the situation, causing harm to the owners.
“In the last month, the situation became even more critical, as changes were made to the law that increased uncertainty. Although the update period was shortened and the index was changed in the final equation of a three-year contract, at best, the result remains equivalent for the owner, and may even be even more detrimental than the index coefficient. previous update. These measures further complicated the situation in the rental market,” José Rozados from the Reporte Inmobiliario portal, who prepared the sector report, told Infobae.
![rs=w:1280](/proxy.php?image=https%3A%2F%2Fimg1.wsimg.com%2Fisteam%2Fip%2Fc96a1142-f964-4cab-81a4-12667f2eb206%2Fnot%25202%252008-11-cfe6dbb.webp%2F%3A%2Fcr%3Dt%3A0%2525%2Cl%3A0%2525%2Cw%3A100%2525%2Ch%3A100%2525%2Frs%3Dw%3A1280&hash=f79bdedb5f9d427174ed92524a28713c)
Buenos Aires offers of 1 estudio
In October, those looking to rent or change their location in CABA found themselves with few options: only 158 studio apartments, 262 two-bedroom apartments and 103 three-bedroom apartments in the entire city.
Rozados expanded: “The situation is extremely critical and must be faced with greater responsibility. In the short term, there are no specific measures that can generate the necessary increase in supply, unless they are supported by macroeconomic decisions that provide greater stability and confidence in the future, especially for owners willing to put their properties on the market. rent. The outlook is further aggravated due to the current legal uncertainty, which discourages investments in construction that could increase the supply of rental housing. The ideal solution could involve reviewing current rental legislation, allowing for quarterly updates based on the Consumer Price Index (CPI), while addressing the real trigger of the problem: inflation.”
![rs=w:1280](/proxy.php?image=https%3A%2F%2Fimg1.wsimg.com%2Fisteam%2Fip%2Fc96a1142-f964-4cab-81a4-12667f2eb206%2Fnot%25203%25208-11-0015f29.webp%2F%3A%2Frs%3Dw%3A1280&hash=3332985a839a1907feb9b1fe9b9b73c0)
Two-bedroom alternatives
No background
In the last 40 years, such a critical situation has not been recorded in the traditional rental market.Oscar Puebla, an architect specialized in Real Estate, told Infobae that the law and its recent reform have generated problems. “It would be ideal to implement a mechanism that allows short-term rental agreements between landlords and tenants, as otherwise the supply will become even more complicated,” he said.
Likewise, a growing trend is observed in which prices in all neighborhoods have increased more than 200% year-on-year.
Puebla highlighted that, as in Europe, tenants in Buenos Aires are beginning to share apartments (known as “floors” in Spain) to economize and divide expenses. “This is becoming a solution for those who cannot afford the rental costs, especially college students and short-term workers.”There are neighborhoods such as Agronomía, Barracas, Villa Luro, Vélez Sarsfield, Pompeya and Saavedra, among others, where the offer is zero. Something that has no precedent in Argentine real estate history.
Constantly rising values
The supply of rentals was drastically reduced, and to this was added a rapid increase in prices. In almost all Buenos Aires neighborhoods they rose more than 200% in one year.![rs=w:1280](/proxy.php?image=https%3A%2F%2Fimg1.wsimg.com%2Fisteam%2Fip%2Fc96a1142-f964-4cab-81a4-12667f2eb206%2Fnot%25204%252008-11.webp%2F%3A%2Frs%3Dw%3A1280&hash=41bbd6c27d3eede6e1db28baea87f4c6)
Three bedrooms (Source: Real Estate Report)
In October, the average rent for a one-bedroom apartment reached $187,350 per month, while a two-bedroom apartment had an average cost of $248,000 per month. On the other hand, three-room apartments offered for rent registered an average of $311,400 per month.
To address this situation, there is hope that the future national government, either under Sergio Massa (Unión por la Patria), thinks about regulations by districts, or Javier Milei (La Libertad Avanza), will propose a new law that allows agreements two years and flexibility in agreements between owners and tenants.
“However, it should be noted that mortgage credit is considered the main tool to alleviate rental demand. Although in the current circumstances, establishing sustainable lines of credit is an insurmountable challenge, given the macroeconomic conditions and the income levels of the population in general,” concluded Rozados.
www.buysellba.com