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Renting a four-room apartment in CABA increased by 358% in the last year - INFOBAE
Source:
Alquilar un departamento de cuatro ambientes en CABA subió un 358% en el último año
El aumento constante en los costos de la vivienda persiste. Actualmente es difícil encontrar propiedades por debajo de los $200.000 mensuales
www.infobae.com
The steady rise in housing costs persists. Currently, it is difficult to find properties under $200,000 per month
By José Luis Cieri
There are less than 50 4-room apartments for rent in the city of Buenos Aires
The 4-room apartments made a very high jump in price for traditional rental contracts in the city of Buenos Aires. A private report revealed that they rose 358.33% year-on-year last November, becoming practically inaccessible options for tenants looking for this type of housing.
The value of properties that have 3 bedrooms reached an average price of $550,000 per month (see following graph that includes average prices and percentage increases for other types of homes).
Source: Real Estate Report
Although the increases in rents exceed inflation, which reached 160.9% year-on-year last November, the high cost is supported by two additional aspects: first, the growing shortage of supply contributes to the rise in prices month after month. month; and in the background within the options presented in pesos, units that were previously published in dollars are now included.
Since the reform of the current Rental Law, it is prohibited to advertise properties in foreign currency. This change led to some properties being offered in pesos at an exchange rate close to the value of the blue dollar, while others opted for the legend “check price.”
José Rozados, from Reporte Inmobiliario (the platform that carried out the analysis), told Infobae that “the increase in supply is something temporary and responds to a regulatory imposition, not something typical of the functioning of the market. When it comes to imposing a price in pesos that will remain fixed with monthly inflations greater than 10% and then will have to be adjusted only every 6 months and based on an uncertain and non-transparent index that will not cover that inflation, few “The owners are willing to accept these conditions and even less so in neighborhoods where there is a lot of concentrated demand for tourism and temporary residences for studies or work.”
The drop in supply in the last year was overwhelming, but last month there was artificial growth as a result of the imposition of publishing rents in dollars, therefore this increase cannot be taken as real growth.
“The real, concrete 3-year rental offer that is published is really marginal in the case of used apartments, only units that are not in the best maintenance conditions or that are published at prices that are too expensive need to be published. The reality is that before a home becomes vacant it has multiple applicants as soon as people find out that it will be vacant,” added Rozados.
Values
Currently, spacious 3 and 4 room properties, published on specialized portals, do not go below $200,000 per month, and the associated expenses exceed $40,000 per month.There are proposals for 4 rooms only in 8 Buenos Aires neighborhoods, which clearly drives its price. And there is an offer of three rooms in only 20 Buenos Aires neighborhoods and a total of 186 apartments. Lisandro Cuello, from the real estate company of the same name, explained that “40% of the demand for 3-room apartments on our site comes from some professionals who use them to live and telework at the same time.”
Source: Real Estate Report
Source: Real Estate Report
What happens with other properties
Regarding prices, the average value of the existing offer for a 1-room unit, last November, was $215,000 per month, while the average value of a 2-room unit reached $261,500 and units with 2 bedrooms They quoted $375,000 on average.The increases for three rooms are 318.99% year-on-year and those for 2 rooms also rose 285.98% year-on-year. Experts maintain that true improvement in housing accessibility requires an increase in real income, accompanied by mortgage credit options. In addition, they advocate greater macroeconomic predictability and conditions of confidence that boost investment in housing.
“Transparency in the real estate market, through the review of the current Rental Law, could expand housing options by incorporating a part of the supply that is currently managed through alternative agreements,” concluded Rozados.
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