BuySellBA
Administrator
Rentals: There are almost no 2-bedroom apartments and in several Buenos Aires neighborhoods they directly disappeared from the offer - Infobae
Source:
www.infobae.com
October 17, 2023
Prices increased significantly, outpacing inflation and the ICL. Homeowners face uncertainty over law reform.
Rental prices continue to rise sharply and generate concern (Getty Images)
Almost 40 months after the entry into force of the Rental Law passed in July 2020, the results become contradictory. The supply of 2-bedroom rental homes is notably reduced due to the resistance of owners to three-year contracts, and the recent reform of the regulations has intensified this trend. In this scenario, finding apartments to rent under the traditional format has become an arduous task, and values continue to increase significantly month after month.
These are the challenges that the housing rental market currently faces in the city of Buenos Aires and currently there are less than 150 apartments for traditional rental and in most neighborhoods, there are no units that have two bedrooms.
When searching for a 2-bedroom apartment, the priority choice for families with one or two children is currently a considerable challenge. Furthermore, prices have experienced a notable increase that far exceeds the Rental Contracts Index (ICL), which registered an increase of 115.6% in the month of October (the new contracts will be under the Casa Propia coefficient from tomorrow).
According to Zonaprop, in the last twelve months, rents for new contracts have experienced a notable increase, accumulating an increase of 184.9 percent. This percentage marks the largest increase recorded since 2012 and significantly exceeds both the inflation rate, which stands at 138.3% (until last September), and the ICL adjustment.
Against this backdrop, the search for income-appropriate housing becomes even more pressing for tenants.
Leandro Molina, commercial manager of Zonaprop, told Infobae that currently, there are no neighborhoods or cities in which there was historically a rental offer and that now completely lack it. “Despite the notable drop in rental proposals, there has not been a zero offer in any neighborhood for prolonged periods.”
Currently, only in 11 Buenos Aires neighborhoods are there 2-bedroom apartments and the few that exist cost over $226,000 per month plus expenses. There are routes such as Villa del Parque, Núñez, Barracas, Monte Castro, Agronomía, La Boca, among others, where they are not found.
There is increasingly less supply of 2-bedroom apartments in CABA
In these days of uncertainty about how owners will approach the reform of the law passed in June 2020, finding 2-bedroom apartments in CABA has become more challenging.
Most of the options available are studio or 1-bedroom. Ariel Erice, from Inmobiliaria Naccarato Propiedades, told Infobae that owners are no longer willing to sign three-year agreements with indexation by ICL and, with the Casa Propia formula, they seem reluctant to agree to agreements with semiannual updates based on said coefficient.
On specialized portals, the demand for 2-bedroom apartments represents 24% of searches, while 1-bedroom apartments are the most sought after, with 50% of queries.
Erice commented: “We are noticing that owners who keep their homes empty, without generating income, are reconsidering this decision, since having the property closed at this point does not seem to be the most convenient option.”
After the reform of the law, the owners are forced to follow the path established by the legislation. However, in many cases, agreements are being made between owners and tenants without the intermediation of real estate agencies and through contracts that are outside the legal framework.
Below are the prices by neighborhood (those that are missing are because to date they do not have a published offer) for apartments of 73.5 square meters according to Zonaprop:
Palermo: $393,000.
Villa Urquiza: $361,000.
Belgrano: $344,000.
Recoleta: $330,000.
Almagro: $321,000.
Caballito: $306,000.
Balvanera: $251,000.
Flowers: $244,000.
San Nicolás: $232,000.
Monserrat: $226,000.
Source:
Alquileres: casi no hay departamentos de 3 ambientes y en varios barrios porteños directamente desaparecieron de la oferta
Los precios aumentaron significativamente, superando la inflación y al ICL. Los propietarios enfrentan incertidumbre por la reforma a la ley
www.infobae.com
October 17, 2023
Prices increased significantly, outpacing inflation and the ICL. Homeowners face uncertainty over law reform.
Rental prices continue to rise sharply and generate concern (Getty Images)
Almost 40 months after the entry into force of the Rental Law passed in July 2020, the results become contradictory. The supply of 2-bedroom rental homes is notably reduced due to the resistance of owners to three-year contracts, and the recent reform of the regulations has intensified this trend. In this scenario, finding apartments to rent under the traditional format has become an arduous task, and values continue to increase significantly month after month.
These are the challenges that the housing rental market currently faces in the city of Buenos Aires and currently there are less than 150 apartments for traditional rental and in most neighborhoods, there are no units that have two bedrooms.
When searching for a 2-bedroom apartment, the priority choice for families with one or two children is currently a considerable challenge. Furthermore, prices have experienced a notable increase that far exceeds the Rental Contracts Index (ICL), which registered an increase of 115.6% in the month of October (the new contracts will be under the Casa Propia coefficient from tomorrow).
According to Zonaprop, in the last twelve months, rents for new contracts have experienced a notable increase, accumulating an increase of 184.9 percent. This percentage marks the largest increase recorded since 2012 and significantly exceeds both the inflation rate, which stands at 138.3% (until last September), and the ICL adjustment.
In specific areas of CABA, rental prices experienced notable increases in the last year. Villa Urquiza leads this increase with a year-on-year increase of 236.07%, closely followed by Almagro with 221.57 percent. Palermo showed an increase of 215.62%, while Flores registered an increase of 206.99% in 2-bedroom rentals.
Reasons behind the Decrease in Supply
Against this backdrop, the search for income-appropriate housing becomes even more pressing for tenants.
Leandro Molina, commercial manager of Zonaprop, told Infobae that currently, there are no neighborhoods or cities in which there was historically a rental offer and that now completely lack it. “Despite the notable drop in rental proposals, there has not been a zero offer in any neighborhood for prolonged periods.”
Currently, only in 11 Buenos Aires neighborhoods are there 2-bedroom apartments and the few that exist cost over $226,000 per month plus expenses. There are routes such as Villa del Parque, Núñez, Barracas, Monte Castro, Agronomía, La Boca, among others, where they are not found.
There is increasingly less supply of 2-bedroom apartments in CABA
In these days of uncertainty about how owners will approach the reform of the law passed in June 2020, finding 2-bedroom apartments in CABA has become more challenging.
Most of the options available are studio or 1-bedroom. Ariel Erice, from Inmobiliaria Naccarato Propiedades, told Infobae that owners are no longer willing to sign three-year agreements with indexation by ICL and, with the Casa Propia formula, they seem reluctant to agree to agreements with semiannual updates based on said coefficient.
On specialized portals, the demand for 2-bedroom apartments represents 24% of searches, while 1-bedroom apartments are the most sought after, with 50% of queries.
Erice commented: “We are noticing that owners who keep their homes empty, without generating income, are reconsidering this decision, since having the property closed at this point does not seem to be the most convenient option.”
After the reform of the law, the owners are forced to follow the path established by the legislation. However, in many cases, agreements are being made between owners and tenants without the intermediation of real estate agencies and through contracts that are outside the legal framework.
Prices in the neighborhoods where there is offer
Below are the prices by neighborhood (those that are missing are because to date they do not have a published offer) for apartments of 73.5 square meters according to Zonaprop:
Palermo: $393,000.
Villa Urquiza: $361,000.
Belgrano: $344,000.
Recoleta: $330,000.
Almagro: $321,000.
Caballito: $306,000.
Balvanera: $251,000.
Flowers: $244,000.
San Nicolás: $232,000.
Monserrat: $226,000.
