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Rentals: there are no studio apartments for less than $70,000 per month and there are almost no 3-bedroom options available - Infobae
Source:
www.infobae.com
September 15, 2023
By: José Luis Cieri
Renting is an odyssey throughout the country and concern is growing in the segment (NA Photo: Damián Dopacio)
The housing problem in Argentina is intensifying, complicating the search for homes to rent through real estate agencies. Inflation continues to impact the market, with numerous owners seeking to increase prices by renewing or extending contracts.
In the City of Buenos Aires, Greater Buenos Aires and other regions of the country, the situation is worrying for those looking to rent. A studio apartment already has a minimum cost of $70,000 per month, regardless of the location or neighborhood, and there is little availability of 3-room homes, which especially affects families with one or two children.
Mariano García Malbrán , president of the Chamber of Real Estate Services Companies (Camesi), informed Infobae : “Rents are rising at a rate higher than inflation, even doubling the increase in the Consumer Price Index (CPI) in a year-on-year analysis. This phenomenon is due to the monthly increases, added to the increase stipulated in the Lease Contract Index (ICL), which currently reaches 124% annually.
The sector rejected the official initiative of the national Senate that seeks to reform the Rental Law passed in 2020. The debate focuses on the official proposal that proposes maintaining the duration of rental contracts at three years , instead of the two years proposed in the half sanction of Deputies; adjust the rental price at least every six months by agreement between the parties, as opposed to quarterly updates supported by the opposition; and use the Own Home coefficient as an adjustment indicator, instead of the current Lease Contract Index (ICL), which combines the variation in salaries and inflation. This official initiative also rules out the alternative approved by Deputies, which would allow the parties to freely agree on the index, such as the Consumer Price Index (CPI), among other options. The Together for Change proposal also focuses on two-year contracts and quarterly adjustments.
“In this way, the national Legislative Branch will not be able to offer the urgent housing solution that the 5,000,000 tenants in our country require,” García Malbrán added.
Jorge Alberto Pighin , president of the College of Real Estate Brokers of the Province of Santa Fe, said: “I would not focus attention exclusively on what happened in the Senate, where no measure was taken to reverse the trend. Despite the announcements from Deputies about a future reform to the Rental Law after the PASO elections, and culminating with the ruling party's ruling, we noticed a high level of discontent from both owners and tenants. However, the half-sanction of Deputies generated some optimism.”
In the province of Santa Fe it is common for the parties to agree to contract extensions between 6 and 12 months, with a price update in the range of 140 to 150 percent.
In Santa Fe, the parallel and informal market has grown, although concrete data is not available on increases and direct agreements between owners and tenants.
“In terms of informality, the number of agreements outside the law has increased significantly, as well as virtual scams due to the limited supply and the urgency of many families to find housing. It is relevant to point out the lack of implementation by the State of social rents, as established by the current law, an aspect that was not addressed in the Senate or by the groups that defend tenants,” Pighin added.
In the capital of Santa Fe, the cost of a two-room apartment varies between $95,000 and $110,000 per month; a 3-room apartment, between $135,000 and $150,000; and a 3-room house, between $160,000 and $180,000 per month.
“There is great confusion among the population. Since the half sanction was approved in Deputies, many believe that the law has already changed. Everything is pending and the Senate still has to deal with two opinions. There is confusion in our market and few contract renewals are taking place; On the other hand, extensions are frequent,” said Fernando Guzmán , president of the College of Real Estate Brokers of Tucumán.
In San Miguel de Tucumán, the cost of a 3-room apartment in less sought-after areas exceeds $110,000 per month
Guzmán added that the demand for rentals has increased due to the lack of mortgage credit and the limited construction of quality units. “There is a great imbalance in the market. Unlike what happens in CABA, temporary rentals did not increase here. Housing construction is needed, both by the private and public sectors, to meet the needs of those who cannot access their own housing,” he said.
“It seems that the regulations will not change until there is a change in the national government. In this region, most owners who recently recovered their properties are not willing to accept long-term contracts; "They are waiting for what is resolved in the short term," said Pablo Daviña , president of the Real Estate Chamber of Misiones.
Agreements outside the legal framework have increased, since many owners choose not to register their contracts with the AFIP. Some property owners who previously offered them for traditional rentals have now put them up for sale, while other homes are rented directly between owner and tenant.
Costanera area of Posadas, capital of Misiones
Daviña added that “a two-room apartment has a cost that ranges between $70,000 and $80,000, and a three-room apartment can reach up to 150,000 pesos. In the case of higher-level homes, prices reach up to $200,000 per month.”
“However, the opinion of the ruling party in the national Senate is contradictory. Although he recognizes the need to modify the law and proposes more tax incentives, he seems to forget that inflation affects the population daily. He chooses to use an index that only reflects 50% of reality, which is incomprehensible,” said Pablo Domínguez , president of the Public College of Real Estate Brokers of San Juan.
In San Juan, current contracts between parties who know and care for each other are being extended for periods shorter than those stipulated by law. The challenge is faced by those who cannot find rental options.
Domínguez added: “Some owners have decided to withdraw their properties from the market until the situation is resolved in the Senate. It is a circumstance that San Juan had not experienced and that, in the face of uncertainty and constant changes, continues to increase.”
In terms of costs, a two-bedroom apartment in a central area has a price of $71,700 per month, while a well-located three-bedroom house costs $135,000 per month.
“We request reform in two aspects: returning to two-year contracts and for the indexation period to be more equitable for owners, given the inflation rate in this country. The resistance to keeping the rent amount frozen for a year is the reason why many owners choose not to continue renting their properties,” said Laura Zucheli , president of the Association of Public Real Estate Brokers of Chubut.
In Puerto Madryn, families are forced to move to less favorable areas due to the inability to meet the requested prices. Values rose above the ICL.
In Puerto Madryn, prices for studio apartments range between $85,000 and $90,000 per month. Two-room apartments can reach up to $180,000, while a three-room house varies between $220,000 and $250,000 per month.
Zucheli concluded: “In Puerto Madryn, we observe that a large number of tenants, unable to afford rental costs, choose to move to smaller units. Young people moving for the first time often share expenses, and families are forced to move to less favorable areas due to the inability to meet the asking prices.”
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Alquileres: no hay monoambientes por menos $70.000 mensuales y casi no se consiguen opciones de 3 ambientes
La incertidumbre legislativa y la inflación impactan en el mercado inmobiliario, complicando tanto a inquilinos como a propietarios. Desde distintas provincias se reportan precios elevados, contratos cortos y una oferta cada vez más limitada de viviendas en locación
www.infobae.com
September 15, 2023
By: José Luis Cieri
Renting is an odyssey throughout the country and concern is growing in the segment (NA Photo: Damián Dopacio)
The housing problem in Argentina is intensifying, complicating the search for homes to rent through real estate agencies. Inflation continues to impact the market, with numerous owners seeking to increase prices by renewing or extending contracts.
In the City of Buenos Aires, Greater Buenos Aires and other regions of the country, the situation is worrying for those looking to rent. A studio apartment already has a minimum cost of $70,000 per month, regardless of the location or neighborhood, and there is little availability of 3-room homes, which especially affects families with one or two children.
Mariano García Malbrán , president of the Chamber of Real Estate Services Companies (Camesi), informed Infobae : “Rents are rising at a rate higher than inflation, even doubling the increase in the Consumer Price Index (CPI) in a year-on-year analysis. This phenomenon is due to the monthly increases, added to the increase stipulated in the Lease Contract Index (ICL), which currently reaches 124% annually.
The sector rejected the official initiative of the national Senate that seeks to reform the Rental Law passed in 2020. The debate focuses on the official proposal that proposes maintaining the duration of rental contracts at three years , instead of the two years proposed in the half sanction of Deputies; adjust the rental price at least every six months by agreement between the parties, as opposed to quarterly updates supported by the opposition; and use the Own Home coefficient as an adjustment indicator, instead of the current Lease Contract Index (ICL), which combines the variation in salaries and inflation. This official initiative also rules out the alternative approved by Deputies, which would allow the parties to freely agree on the index, such as the Consumer Price Index (CPI), among other options. The Together for Change proposal also focuses on two-year contracts and quarterly adjustments.
Both proposals will be debated next week in the chamber and, if the ruling party's is successful, once approved it will return to Deputies for a new review.
“In this way, the national Legislative Branch will not be able to offer the urgent housing solution that the 5,000,000 tenants in our country require,” García Malbrán added.
Without brake
Experts consider that recent events in the Senate do not contribute to the current context, generating uncertainty and delaying possible solutions to the housing problem.Jorge Alberto Pighin , president of the College of Real Estate Brokers of the Province of Santa Fe, said: “I would not focus attention exclusively on what happened in the Senate, where no measure was taken to reverse the trend. Despite the announcements from Deputies about a future reform to the Rental Law after the PASO elections, and culminating with the ruling party's ruling, we noticed a high level of discontent from both owners and tenants. However, the half-sanction of Deputies generated some optimism.”
In the province of Santa Fe it is common for the parties to agree to contract extensions between 6 and 12 months, with a price update in the range of 140 to 150 percent.
In Santa Fe, the parallel and informal market has grown, although concrete data is not available on increases and direct agreements between owners and tenants.
“In terms of informality, the number of agreements outside the law has increased significantly, as well as virtual scams due to the limited supply and the urgency of many families to find housing. It is relevant to point out the lack of implementation by the State of social rents, as established by the current law, an aspect that was not addressed in the Senate or by the groups that defend tenants,” Pighin added.
In the capital of Santa Fe, the cost of a two-room apartment varies between $95,000 and $110,000 per month; a 3-room apartment, between $135,000 and $150,000; and a 3-room house, between $160,000 and $180,000 per month.
Tucuman
In this northern Argentine province, the search for housing presents significant challenges. The availability of units in San Miguel, the capital of the province, is scarce.“There is great confusion among the population. Since the half sanction was approved in Deputies, many believe that the law has already changed. Everything is pending and the Senate still has to deal with two opinions. There is confusion in our market and few contract renewals are taking place; On the other hand, extensions are frequent,” said Fernando Guzmán , president of the College of Real Estate Brokers of Tucumán.
In San Miguel de Tucumán, the cost of a 3-room apartment in less sought-after areas exceeds $110,000 per month
Guzmán added that the demand for rentals has increased due to the lack of mortgage credit and the limited construction of quality units. “There is a great imbalance in the market. Unlike what happens in CABA, temporary rentals did not increase here. Housing construction is needed, both by the private and public sectors, to meet the needs of those who cannot access their own housing,” he said.
Near the Paraná River
In Posadas, in northwest Argentina, the situation is similar.“It seems that the regulations will not change until there is a change in the national government. In this region, most owners who recently recovered their properties are not willing to accept long-term contracts; "They are waiting for what is resolved in the short term," said Pablo Daviña , president of the Real Estate Chamber of Misiones.
Agreements outside the legal framework have increased, since many owners choose not to register their contracts with the AFIP. Some property owners who previously offered them for traditional rentals have now put them up for sale, while other homes are rented directly between owner and tenant.
Costanera area of Posadas, capital of Misiones
Daviña added that “a two-room apartment has a cost that ranges between $70,000 and $80,000, and a three-room apartment can reach up to 150,000 pesos. In the case of higher-level homes, prices reach up to $200,000 per month.”
Whose
The treatment of the law has generated expectations among all those involved, fueling hope for a reactivation based on the possibility of returning to a path of balance and clear rules.“However, the opinion of the ruling party in the national Senate is contradictory. Although he recognizes the need to modify the law and proposes more tax incentives, he seems to forget that inflation affects the population daily. He chooses to use an index that only reflects 50% of reality, which is incomprehensible,” said Pablo Domínguez , president of the Public College of Real Estate Brokers of San Juan.
In San Juan, current contracts between parties who know and care for each other are being extended for periods shorter than those stipulated by law. The challenge is faced by those who cannot find rental options.
Domínguez added: “Some owners have decided to withdraw their properties from the market until the situation is resolved in the Senate. It is a circumstance that San Juan had not experienced and that, in the face of uncertainty and constant changes, continues to increase.”
In terms of costs, a two-bedroom apartment in a central area has a price of $71,700 per month, while a well-located three-bedroom house costs $135,000 per month.
In Chubut
From Puerto Madryn, it is pointed out that the real estate market is fragmented and that legislators cannot reach a consensus.“We request reform in two aspects: returning to two-year contracts and for the indexation period to be more equitable for owners, given the inflation rate in this country. The resistance to keeping the rent amount frozen for a year is the reason why many owners choose not to continue renting their properties,” said Laura Zucheli , president of the Association of Public Real Estate Brokers of Chubut.
In Puerto Madryn, families are forced to move to less favorable areas due to the inability to meet the requested prices. Values rose above the ICL.
In Puerto Madryn, prices for studio apartments range between $85,000 and $90,000 per month. Two-room apartments can reach up to $180,000, while a three-room house varies between $220,000 and $250,000 per month.
Zucheli concluded: “In Puerto Madryn, we observe that a large number of tenants, unable to afford rental costs, choose to move to smaller units. Young people moving for the first time often share expenses, and families are forced to move to less favorable areas due to the inability to meet the asking prices.”
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