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Rentals: The reasons why a one-bedroom should be occupied as soon as possible - La Nacion Propiedades
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Alquileres: las razones por las que un dos ambientes hay que ocuparlo cuanto antes
Los departamentos de dos ambientes registran un récord histórico en la disponibilidad para alquilar y son, a la vez, la tipología que más se construye y que más se demanda
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April 9, 2024
One-bedroom apartments record a historical record in availability for rent and are, at the same time, the type that is most built and most in demand.
By Candelaria Reinoso Taccone
Small apartments are the ones that have been built the most and are most in demand in recent times
After the repeal of the rental law on December 29 of last year, the supply of properties grew by 125% in three months, according to data from Zonaprop . This situation contrasts markedly with the last four years, characterized by a shortage of apartments for rent in all neighborhoods of the city of Buenos Aires.
With the regulation of rental contracts again under the Civil and Commercial Code and greater flexibility in contractual terms, renting a property became more attractive in terms of profitability for the owner . As a consequence, there is a resurgence in the supply of apartments in the city , with more than 12,500 apartments published in Zonaprop and an increase of 43% in the supply during the month of February alone.
The two environments register a historical record in availability.
However, the increase in stock was not similar in all types. Although historically units with up to three rooms were the most offered, today the two rooms record a historical record in availability . In concrete terms, a year-on-year increase of 242% in the supply of this type was recorded in the first week of March , as reported by Maure Inmobiliaria , based on data provided by Zonaprop.
But the even more revealing fact is that the supply of two-room apartments is the highest in 10 years: today there are 4,186 publications and in March 2013 there were 3,435.
When analyzing the phenomenon, specialists give various reasons, and even suggest that a drop in the price of these units could be generated . “Since there is so much supply, it is more difficult to rent and rental prices will have to be adjusted ,” says Soledad Balayan, owner of Maure Inmobiliaria. “We would be reaching a historical supply record, so it is inevitable that rental prices will decline , especially for the most standard units, poorly located, internal, without a balcony and with a low level of maintenance,” explains Balayan.
Although this dynamic of price reduction has occurred in the purchase and sale market in recent years, the specialist assures that the difference lies in the fact that in the rental market, prices adjust much more quickly . “In any case, it must be understood that the rental market experienced very large distortions, which generated a lot of frustration in landlords who fear being so behind in prices again. Eventually, whoever wants to rent will adjust to logical values, and if inflation subsides, fear will too,” says Balayan.
70% of the demand is concentrated in single-room and two-room apartments.
More boys, more in demand
Regarding demand, Balayan recognizes that 70% is concentrated in single-bedrooms and two-bedrooms . “While the population of CABA is not increasing, the number of apartments occupied does increase each year, but by fewer and fewer people. This causes demand to be concentrated in smaller units ,” adds economist Federico Gonzalez Rouco, who works at Hernán Lacunza's consulting firm, Empiria.Balayan adds that in recent years there has been a decrease in the construction of large apartments , given that they are less in demand for rent and less profitable for investors: they also tend to require high entrance fees that do not align with the interest of those who bet. to brick as an investment refuge. This phenomenon also led to homes in the Federal Capital becoming smaller and smaller.
Along the same lines, González Rouco explains that, due to the lack of mortgage credit, the units of the projects under construction are directed only to those who have the necessary capital. “ The small units are the most built, since they require less initial capital ,” he adds.
Small apartments are the most abundant in the city of Buenos Aires.
Regarding the reasons that could explain the increase in supply, one of them is that, after the repeal of the DNU, many units intended for temporary rental went to the traditional market .
“With the old rental law that allowed only an annual adjustment in an inflationary context and considering that Argentina was very attractive in terms of prices in dollars for foreigners, many owners had their apartments destined for Airbnb ,” adds Diego Cazes, general director. by LJ Ramos. “Many of them invested between US$10,000 and US$12,000 to equip their properties and obtain better profitability. The abrupt change occurred with the new government,” he explains.
The supply of temporary rentals showed a drop: they went from 10,400 at the beginning of January to 9,100 at the end of February.
“With a dollar that is falling and inflation that continues to absorb everything, foreigners, the main users of temporary rentals, stop coming to the country. "Argentina is no longer such an attractive destination because it is no longer 'cheap' , which led to this type of rental going into crisis, especially in studio apartments and two-room apartments, which are the most common for temporary rentals," explains Cazes. Consequently, these typologies are once again trying to be rented to the permanent local population.
Balayan supports the analysis with numbers: the supply of temporary rentals showed a drop: they went from 10,400 at the beginning of January to 9,100 at the end of February.
What about prices
The one-bedroom could experience a reduction in price if the owners wish to rent it.
Balayan warns that, regarding the amount of supply of two-room apartments, it is crucial to determine if there is an accumulation of advertisements due to the difficulties in renting them , or if there is really an active rotation in the market. If the former, this typology could experience a reduction in its price if the owners wish to rent them , or they could even refrain from increasing them, which, given the current inflation situation, indicates a decrease in real terms. “It could be a build-up of stock, which will put considerable pressure on prices to decrease ,” he adds.
According to Cazes, the rental market is still assimilating the available offer. “ Two-bedrooms are always in demand, but what they need to rent is an adequate price .” There were many cases of young people who were forced to return to live with their parents because they could not afford the rent. When prices go down, they will get busy again. The real estate market tends to rise quickly and fall slowly, but I think they will now adjust in favor of the tenant,” she argues.
González Rouco shares this perspective and adds that, although rents experienced a smaller increase than inflation (in February the increase was 2.9%, while inflation reached 13.2%), they are still above the increase in wages. “ Until this situation is corrected, prices will have to fall .” It is also possible that the owners choose to retain the apartments rather than obtain an unsatisfactory profitability,” concludes the economist.
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