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Rents in the interior of the country increased by an average of 260% in the last year - Infobae
Source:
www.infobae.com
September 25, 2024
A survey in 11 cities in different regions confirmed this trend. Although prices have started to slow down in the last three months, there is still a shortage of available rental housing in several localities.
By Jose Luis Cieri
Neuquén capital is one of the cities with the greatest construction progress in the interior, but due to the push from Vaca Muerta it continues to have difficulties in satisfying the demand for rent there.
The dynamics of renting an apartment are very different in each area of the country. A recent report confirmed that the year-on-year price increases in the interior exceed the accumulated price increases in the city of Buenos Aires.
The survey, carried out in 11 cities, showed that rental prices registered significant increases. one-bedroom apartments showed a year-on-year increase of 277.5%, while thwo-bedroom apartments registered an increase of 267% on average. CABA, according to Real Estate Report, has accumulated an increase of 184.25% on average for one-bedroom apartments and 174.28% for two-bedroom units.
Although quarterly increases have slowed in recent months, as inflation has fallen, the rise is still sharp compared to the first two quarters of the year.
Among the reasons that explain why the accumulated year-on-year increase is greater in the interior of the country than in CABA, Germán Gómez Picasso , from Reporte Inmobiliario, explained to Infobae : “In general, in the interior the supply of units is lower, since much less is built than in Buenos Aires. As demand grows and supply does not expand with new units, prices inevitably rise. Every year, the housing deficit increases by 47,000 additional units.”
According to the real estate market, when measuring year-on-year prices, the values in the interior are still heavily influenced by the months of late 2023, when the Rental Law had not yet been repealed. This context affects the variables considered in the current analyses.
Source: Real Estate Report
“While Posadas, Misiones (4% for 2 bedrooms), and Rosario (6% for 2 bedrooms) are the ones that have increased the least. The quarterly increases are still high, but are now at similar percentages to the rest of the goods and services. In the last quarter, the pace of increases that had been greatly affected by what happened in 2023 and the inflationary drag that slowed down recently, slowed down,” said Gómez Picasso.
Nicolás N. Fundaró , president of the Professional College of Auctioneers and Public Brokers of that province, commented: “A particular characteristic of the city is that there was little removal of properties, unlike what happened in other areas, due to population growth and immigration driven by the development of Vaca Muerta.”
“Despite the increases, there is usually room for negotiation between owners and tenants. However, with a very limited supply, alternatives are scarce for those looking to rent,” Fundaró added.
Virginia Manzotti , president of the Federal Council of Real Estate Associations (Cofeci), said that high values persist because they are related to the problems generated by the failed Rental Law (now repealed). “The consequences of this law are still being suffered by both tenants and owners. However, today the market at a national level is recovering, and rental values are beginning to balance out,” she said.
In cities such as Córdoba capital, supply is adjusting to demand in a more flexible way, allowing better options for tenants, according to reports from the real estate market.
In Docta, according to data from the Real Estate Statistics Center of the Professional Real Estate Association (CEI), the number of rental transactions grew by 135.2% compared to the previous year, reflecting a positive trend in the sector. Of these transactions, 72.7% were in apartments, while the rest were distributed among houses, commercial premises, garages and housing .
Regarding the offer after the repeal of the Law, Manzotti commented: “Tenants now have the possibility of choosing properties from different areas, prices and characteristics. We are no longer dependent on erroneous state regulation, but rather supply and demand are finding a balance. In a few months, this balance will be optimal for both parties.”
Diego Ferreyra , a member of the Rosario College of Real Estate Brokers (Cocir), explained that the most significant increases were recorded in 2- and 3-bedroom apartments, where supply is more limited. On the other hand, in the case of studio apartments, which have greater availability, prices did not increase at the rate of inflation, and new rental units are offered at prices below inflationary indices.”
Following the DNU, the rental offer in Rosario tripled (there are currently 1,800 apartments for rent), which generated stability in prices and gave tenants more options to compare and choose from.
“For rent signs have returned to the properties, there is no longer a waiting list and people have more time to decide,” said Ferreyra.
He also pointed out that, although there were initially fears of a dollarization of the market, this did not happen in Rosario.
Ferreyra concluded: “The change in the regulatory framework allowed for greater flexibility in agreements between landlords and tenants, facilitating renegotiations in many cases due to the repressed inflation of the first half of the year.”
www.buysellba.com
Source:
Los alquileres en el interior del país aumentaron un promedio de 260% en el último año
Un relevamiento en 11 ciudades de diferentes regiones confirmó esta tendencia. Aunque en los últimos tres meses los precios comenzaron a desacelerarse, aún sigue habiendo escasez de viviendas disponibles para alquilar en varias localidades
www.infobae.com
September 25, 2024
A survey in 11 cities in different regions confirmed this trend. Although prices have started to slow down in the last three months, there is still a shortage of available rental housing in several localities.
By Jose Luis Cieri
Neuquén capital is one of the cities with the greatest construction progress in the interior, but due to the push from Vaca Muerta it continues to have difficulties in satisfying the demand for rent there.
The dynamics of renting an apartment are very different in each area of the country. A recent report confirmed that the year-on-year price increases in the interior exceed the accumulated price increases in the city of Buenos Aires.
The survey, carried out in 11 cities, showed that rental prices registered significant increases. one-bedroom apartments showed a year-on-year increase of 277.5%, while thwo-bedroom apartments registered an increase of 267% on average. CABA, according to Real Estate Report, has accumulated an increase of 184.25% on average for one-bedroom apartments and 174.28% for two-bedroom units.
Although quarterly increases have slowed in recent months, as inflation has fallen, the rise is still sharp compared to the first two quarters of the year.
Among the reasons that explain why the accumulated year-on-year increase is greater in the interior of the country than in CABA, Germán Gómez Picasso , from Reporte Inmobiliario, explained to Infobae : “In general, in the interior the supply of units is lower, since much less is built than in Buenos Aires. As demand grows and supply does not expand with new units, prices inevitably rise. Every year, the housing deficit increases by 47,000 additional units.”
According to the real estate market, when measuring year-on-year prices, the values in the interior are still heavily influenced by the months of late 2023, when the Rental Law had not yet been repealed. This context affects the variables considered in the current analyses.
Radiography
The locations that increased the most in the last quarter are Neuquén Capital (32% for one-bedroom apartments) and Mendoza Capital (28%).
Source: Real Estate Report
“While Posadas, Misiones (4% for 2 bedrooms), and Rosario (6% for 2 bedrooms) are the ones that have increased the least. The quarterly increases are still high, but are now at similar percentages to the rest of the goods and services. In the last quarter, the pace of increases that had been greatly affected by what happened in 2023 and the inflationary drag that slowed down recently, slowed down,” said Gómez Picasso.
The Neuquén case
The expansion due to investments in Vaca Muerta boosted building development in Neuquén. However, a demand greater than supply put pressure on rental prices, generating increases that impact the pockets of those who rent.Nicolás N. Fundaró , president of the Professional College of Auctioneers and Public Brokers of that province, commented: “A particular characteristic of the city is that there was little removal of properties, unlike what happened in other areas, due to population growth and immigration driven by the development of Vaca Muerta.”
“Despite the increases, there is usually room for negotiation between owners and tenants. However, with a very limited supply, alternatives are scarce for those looking to rent,” Fundaró added.
Cordoban accent
The strong growth in rental prices in the interior of the country is also reflected in the capital of Córdoba.Virginia Manzotti , president of the Federal Council of Real Estate Associations (Cofeci), said that high values persist because they are related to the problems generated by the failed Rental Law (now repealed). “The consequences of this law are still being suffered by both tenants and owners. However, today the market at a national level is recovering, and rental values are beginning to balance out,” she said.
In cities such as Córdoba capital, supply is adjusting to demand in a more flexible way, allowing better options for tenants, according to reports from the real estate market.
In Docta, according to data from the Real Estate Statistics Center of the Professional Real Estate Association (CEI), the number of rental transactions grew by 135.2% compared to the previous year, reflecting a positive trend in the sector. Of these transactions, 72.7% were in apartments, while the rest were distributed among houses, commercial premises, garages and housing .
Regarding the offer after the repeal of the Law, Manzotti commented: “Tenants now have the possibility of choosing properties from different areas, prices and characteristics. We are no longer dependent on erroneous state regulation, but rather supply and demand are finding a balance. In a few months, this balance will be optimal for both parties.”
Pace of consumer prices
The growth in rental prices in Rosario closely followed the inflationary process, although with differences depending on the type of property.Diego Ferreyra , a member of the Rosario College of Real Estate Brokers (Cocir), explained that the most significant increases were recorded in 2- and 3-bedroom apartments, where supply is more limited. On the other hand, in the case of studio apartments, which have greater availability, prices did not increase at the rate of inflation, and new rental units are offered at prices below inflationary indices.”
Following the DNU, the rental offer in Rosario tripled (there are currently 1,800 apartments for rent), which generated stability in prices and gave tenants more options to compare and choose from.
“For rent signs have returned to the properties, there is no longer a waiting list and people have more time to decide,” said Ferreyra.
He also pointed out that, although there were initially fears of a dollarization of the market, this did not happen in Rosario.
Ferreyra concluded: “The change in the regulatory framework allowed for greater flexibility in agreements between landlords and tenants, facilitating renegotiations in many cases due to the repressed inflation of the first half of the year.”
www.buysellba.com
