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Rising prices and more supply, in the midst of the crisis: How much does it cost to rent two- and three-bedroom apartments - Infobae
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Precios en alza y más oferta, en medio de la crisis: cuánto cuesta alquilar departamentos de dos y tres ambientes
Los valores registran un aumento que promedia el 150% interanual en las distintas ciudades relevadas. De oferta escasa hace dos meses ahora se advierte una migración notable de propietarios que aceptan acuerdos desregulados
www.infobae.com
February 16, 2024
The values register an increase that averages 150% year-on-year in the different cities surveyed. From a low supply two months ago, there is now a notable migration of owners who accept deregulated agreements
By José Luis Cieri
In this emotional moment, the handing over of the keys marks the beginning in an empty apartment ready to move into. A symbol of moving, rentals. The supply is growing throughout the country and there are different prices depending on the dynamics of each place (Illustrative Image Infobae)
The dynamics of rents alternate fluctuations these days. The positive thing is that the DNU, which repealed the Rental Law that was rejected by the owners from the beginning, is causing the supply to expand. From very scarce proposals until two months ago, in the last two months, availability rose by 60 percent.
However, high values for the formalization of contracts persist , with differences depending on the places in different cities in the country. The new agreements reflect a year-on-year increase of 150% on average.
Mirta Líbera, president of the Real Estate Chamber of the Province of Buenos Aires, told Infobae that since the implementation of the DNU, the rental offer shows an increase of 40%, but compared to the second half of 2023, characterized by a shortage of supply, growth exceeds 75 percent.
In this context, the role of real estate professionals was strengthened. Their work as runners and in location management became more relevant. Negotiating contracts and conditions involves considering the type of property, its profile, and specific demands.
In La Plata the offer prospered 75% since the Rental Law was repealed
Cordovan rhythm
Regarding the recommendations for tenants and the work of real estate agents to facilitate agreements in this new stage, both official institutions and private real estate agencies suggest for residential destinations to make two-year contracts, with quarterly updates agreed in pesos, using the Retail Price Index. Consumer (IPC).Juan Pablo Baca , real estate consultant, said that “regarding the growth of year-on-year supply in Córdoba capital post DNU, a notable increase is observed. In places like the Nueva Córdoba neighborhood, highly sought after due to its proximity to universities, the supply doubled. Furthermore, 50% of the owners who had their properties for sale decided to use them for rent.”
Regarding the current values in Córdoba capital and its stabilization, despite the initial increase in prices by owners seeking to compensate for previous losses, the market adjusted with the increase in supply.
The prices of two- and three-room apartments, as well as three-room houses with and without a garage in Córdoba Capital, vary depending on the category and location.
“As a reference, a 1-room apartment has a rent of approximately $150,000, while a 2-room apartment starts at $170,000, in mid-range neighborhoods and up. In the most in-demand area, Nueva Córdoba, the average rent, considering different types of housing, is $300,000 per month,” said Baca.
Three digits in Rosario
In Rosario, during 2023, the rental market experienced a notable decline. This phenomenon was accentuated starting in July and August, coinciding with the expiration of the first contracts signed under the now repealed law.“The properties rented in 2020 for three years were generally withdrawn by the owners in 2023. The main reason was the disadvantages derived from the freezing of rental prices for 11 months,” explained Diego Ferreyra , of Diego Ferreyra Bienes Raíces.
Data collected by the Propia portal, specialized in real estate brokers in the south of Santa Fe, reveal that last July, in Rosario, there were 600 homes available for rent, while in February 2024, the figure rose to 1,230, representing an increase of 105% in the offer.
The supply in Rosario grew by 105% since the DNU came into force.
A study carried out by the Economic Research Institute of the National University of Rosario, prior to the inauguration of the new government, revealed that one-room apartments experienced a nominal increase of 9% in their rents, despite inflation of 25, 5% in December and 20.6% in January.
The two-room units prior to the devaluation had an average value of $190,000, while currently they are offered on average $200,000, increasing only 5%; In those with three rooms the values average $220,000 without a garage.
“As for the rental homes segment, a more challenging scenario is observed, marked by a lower supply and an absence of increase in new constructions,” Ferreyra added.
Houses without a garage start at $250,000, while those with a garage start at $300,000 per month.
From temporary to traditional
In Mendoza capital, dozens of owners who previously used their properties for temporary or tourist rentals saw that demand decreased, post DNU, and little by little they begin to re-propose their units as residential locations with two-year agreements.Eduardo Rosta , president of the Association of Public Real Estate Brokers of Mendoza, pointed out that “there were notable changes in the market. Market dynamics are also influenced by the reappearance of numerous apartments that were previously intended for temporary rental. The decrease in tourism, associated with the growth of the exchange rate, led to these departments becoming unoccupied. This situation, along with cases of adults in the process of separation, divorce and university students, generated an increase in the supply of traditional rentals.”
Before the DNU, of every 100 properties published on real estate portals in Mendoza, only 6 were intended for traditional rental and 2 for temporary rental. Currently, this proportion has changed significantly, with 12 properties dedicated to traditional rentals and approximately 1.8% destined for temporary rentals, evidencing a growing trend towards the long-term format.
Gradually in Mendoza capital the offer of traditional rentals recovers.
Despite the transformations in the market, the starting points for locations in general remain largely unchanged. “Two-room apartments start at $110,000, studio apartments start at $90,000 per month, while three-room apartments range between $200,000 and $220,000, without considering a garage,” Rosta said.
Caution in the Northeast
In San Salvador de Jujuy, where the supply was almost zero until last November, properties for traditional rental are again found.Carlos Vaca Petrelli , president of the Jujuy Auctioneers' Association, provides guidance from the institution to owners and tenants in the face of the uncertainties generated by Javier Milei 's decree . “We suggest caution so that the outlook for prices and conditions becomes clearer. “Professionals in the sector intervene to reassure both parties: owners and tenants, and so that they reach balanced agreements,” he said.
In San Salvador de Jujuy rental values are proposed with some caution to avoid strong increases.
In relation to the real estate dynamics in Jujuy, an increase of 30% in supply is observed, marking a precaution on the part of the population that coincides with the advice given by Real Estate Brokers.
Furthermore, in response to the situation generated by the DNU, prices are generally being agreed around 20% less than in December 2023, reflecting an adaptation to the new regulatory scenario and where adjustments can be applied.
Regarding rental prices in San Salvador de Jujuy, a central two-room apartment ranges between $180,000 and $220,000, while a three-room apartment ranges between $220,000 and $280,000 per month. For its part, a 4-room duplex in good neighborhood areas has a range of $280,000 to $350,000 per month.
Between two provinces
At the Patagonian gateway is Viedma, capital of Río Negro, and precisely the homonymous watercourse divides this province from that of Buenos Aires. The neighboring city is Carmen de Patagones and both cities have different dynamics in terms of prices.Febo Capponi , former president of the former president of the College of Auctioneers and Public Brokers of Viedma, highlighted “the current importance of auctioneers advising both parties, owners and tenants, when signing rental contracts. The need to adapt these agreements to the conditions that currently apply when making agreements regarding housing locations must be highlighted.”
The Negro River divides Viedma, the capital of Rio Negro from Carmen de Patagones (located in front) from the Buenos Aires side (Photo Courtesy: Marcelo Ochoa)
On the Buenos Aires side, the values decrease by up to 10% compared to the town that houses the main government and administrative headquarters of Rio Negro.
The supply grew by almost 80%, currently there are close to 100 homes when two months ago it was very limited.
The values of two-room apartments in Viedma range between $140,000 and $180,000 per month, those with three rooms can reach up to $270,000, but they always depend on the location, age and services of the home.
“New agreements are signed to a greater extent through quarterly or semiannual adjustments and in pesos, and are updated by the Lease Contract Index (ICL),” Capponi concluded.
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