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Rentals: There are more than 15,000 properties available and now tenants do not want to pay what the owners ask - Infobae
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Alquileres: hay más de 15.000 propiedades disponibles y ahora los inquilinos no quieren pagar lo que piden los dueños
La demanda muestra signos de resistencia ante los precios solicitados por viviendas de 3 ambientes que alcanzan un promedio de $530.000 mensuales
www.infobae.com
May 1, 2024
Demand shows signs of resistance given the prices requested for 3-room homes that reach an average of $530,000 per month
By José Luis Cieri
Handing over the keys for a new rental contract takes longer than it did a year ago. High values for employees delay rental decisions now with greater supply (Illustrative Image Infobae)
With the expectation generated by the announcement of new mortgage loans intended for the purchase, renovation or expansion of properties, the real estate market seeks to boost its activity after more than five years of stagnation.
In this context and after the DNU that repealed the Rental Law, the supply expanded to record levels and there are already more than 15,000 properties for sale in different neighborhoods of the city of Buenos Aires. But prices remain high: a three-room apartment, per case, averages $530,000 per month, with a month-on-month variation of 6% and 241.9% year-on-year, according to the Center for Economic and Social Studies (CESO).
During these hours, properties are no longer rented in just 48 hours as was the case between May and July 2023 (some tenants even made contracts without seeing the property in person). Today, the duration of the rental process has been extended to 15 days or more.
Soledad Balayan , an analyst at Maure Inmobiliaria, acknowledged to Infobae that an accumulation of notices that have to do with the recession is being observed. “The lawsuit is not validating the prices or conditions proposed by the owners for the rental. This phenomenon is partly a consequence of the repealed Rent Law, which generated fear among owners of setting prices that in the long term could be too low, added to an additional effect of the general recession, which prevents tenants from accepting the prices requested.”
According to CESO data, the prices of one-bedroom homes remain at $300,000, with no monthly variation, although with a significant increase of 252.9% year-on-year. Two-room apartments in CABA range at $380,000, rose 8.6% month-on-month and have accumulated an increase of 261.9% in the last twelve months.
Options
According to Balayan, in Zonaprop the rental offer increased by 180% and in Argenprop, by 270% year-on-year.
The current economic context means that the rental market is seeing an income of properties greater than the number of contracts that can be signed (Illustrative image Infobae)
There are apartments that have already been on sale for more than a month. From the sector they maintain that if prices are lowered, demand reacts positively. However, unlike previous periods, when rental contracts were closed after the first visits, now, due to the greater number of options available, potential tenants make their decision less hastily.
“The initial publication prices have a more significant reduction than the adjustment conditions. There is less resistance from owners to lowering the initial rental price than to modifying the adjustment terms or the type of index used,” Balayan said.
Boosted offer
The supply of rental properties experienced a notable change in different neighborhoods of the city, overcoming the availability difficulties that were registered until the end of the year.The situation began to change after the repeal of the rental law, causing a significant increase in the number of available units. Balayan highlighted this change by pointing out that in Saavedra, where at the end of last year there were only 5 rental units, today there are more than 120.
The demand is aimed at finding two- and three-room apartments.
Neighborhoods such as Paternal, Mataderos, Agronomía, Parque Patricios, Villa Pueyrredón, Villa Lugano and Villa Santa Rita, which five months ago suffered from a practically non-existent supply, now offer renewed availability.
“Many owners who were previously inclined towards sale or temporary rental, now opt for traditional rental. The repeal of the Law played a crucial role in making profitability more attractive in dollars and making contractual conditions more satisfactory for owners,” explained Mariano García Malbrán , president of the Chamber of Real Estate Services Companies (Camesi).
The current dynamics of the rental market are characterized by a demand that prioritizes two- and three-bedroom units, driven by those who, in search of more space, previously had to adjust to the limited supply available. Now, with a broader offer, these potential tenants have the possibility of choosing homes that best fit their needs for space and comfort.
Negotiations between owners and tenants evolved towards two-year maximum term contracts with quarterly adjustments based on the Consumer Price Index (CPI) or quarterly adjustments through the Rental Contract Index (ICL) for prices in pesos, while For contracts in dollars, they are established without additional adjustments during their validity.
“The stabilization of prices and the adaptation of contractual conditions reflect a market that seeks balance between supply and demand, thus favoring the satisfaction of both parties. This is a step forward to recover the positive dynamics of the sector,” concluded García Malbrán.
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