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Rentals: What no one tells about a market in complete change - La Nacion Propiedades
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Alquileres: lo que nadie cuenta sobre un mercado en pleno cambio
Presente y futuro de un negocio en el que la oferta aumenta y la demanda se ilusiona con propiedades más accesibles
www.lanacion.com.ar
February 10, 2024
Present and future of a business in which supply increases and demand is excited about more accessible properties
By Soledad Balayan
The average rental price from December to January 2024 increased by 21%, below inflation
“My apartment was vacated and I would like to know what the conditions are now being handled with the DNU in force .”
“I have an apartment that has been unoccupied for a couple of years and I see that it can now be rented again for two years and adjusted for inflation. I am interested in knowing the rental value and seeing the possibility of publishing it.”
“I'm looking for a rental and I saw that they have one for two years, is it possible to make the contract for a single year?”
“I wanted to cancel the scheduled visit because I saw another one with a garage at a better price .”
“I have a contract made under the 2020 law and it ends within a year, the price is very low compared to what I see published, what can I do?”
These are just some of the queries that real estate agencies have received since the beginning of the year regarding the real estate market after the rental law was repealed and the DNU signed by President Javier Milei was implemented.
Real estate agencies receive more inquiries from owners and tenants since the rental law was repealed
What is observed in the market in these first days of the year?
Offer
There was a significant increase in supply that demonstrates a new interest in renting properties under the new conditions arising from the DNU while it is in force.This is seen not only in the number of notices published, but also in requests for traditional rental appraisals since the beginning of the year: there has been a change in the dynamics of the market. In one month (January) an increase of 62% in the supply of rental properties was observed versus December of last year , according to the latest Zonaprop report . Some units enter the market after the completion of recent contracts, while others, unoccupied for a time, are also added. A small percentage that was for sale is now used for rent because the sale price does not meet the owners' expectations. Even some furnished and equipped properties are beginning to be part of this offer, with terms and predominantly in dollars. The first good sign is that there are more options.
Prices
Regarding this new offer, the price does not say much, since you have to see the entire combo: term, adjustment index, guarantee deposit and the guarantees presented as guarantees (proprietary guarantee, advance payment, surety insurance or bonds among others. possible options).If the price is in dollars, it will also be necessary to analyze what the rest of the conditions mentioned above are.
January is usually a month of very low activity in the real estate market
All of this is what the tenant must observe to see which one is the most convenient. There may be more options, but without validation of conditions there is no market.
There is talk of lower prices, but it is important to differentiate market segments. The premium segment that publishes in dollars may have shown a drop in prices and in some cases there may even be advance payment proposals, since this is allowed in the DNU. However, this does not apply to the majority of properties advertised.
Regarding publications in pesos, it is difficult to observe price drops taking into account the recent inflation data for December that exceeded 25%. In fact, according to Zonaprop, the average rental price from December to January 2024 increased by 21%, below inflation . In any case, taking into account that the new proposals in the contracts have adjustments for inflation , a balance must be found in the initial contract price.
You still have to take into account the timing and seasonality: January is not usually the most active month of the year, the vast majority take vacations at this time, so not many contracts are usually closed. It is very difficult to draw conclusions in such a short time and analyzing a month of such low general activity.
Demand
Regarding demand, those who are looking for a rental during January make the decision quite quickly. The tenant searching now will have less competition than in February and March , which are the months where more people are searching for a rental, but it is also possible that in a month the supply will continue to increase, more options will be observed and prices will be lower. they are settling in. On the one hand, due to a greater flow of income and on the other as a result of the accumulation of notices that are not validated by the demand.The rental market requires an accommodation of prices and conditions. Reason why it will take time for the variables to reach a new equilibrium. For this reason, I consider it essential that the DNU remains in force to achieve better functioning, but fundamentally to generate signs of continuity and that there will be no changes in the rules of the game.
* The author of the note is the owner of Maure Inmobiliaria
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