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The 6 neighborhoods of the city with the greatest supply and demand for temporary rentals - La Nacion Propiedades
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Los 6 barrios de la ciudad con mayor oferta y demanda de alquileres temporarios
Son zonas que concentran la mayor oferta de alquileres temporarios, una modalidad en alza en el mercado inmobiliario
www.lanacion.com.ar
January 13, 2024
These are areas that concentrate the largest supply of temporary rentals, a modality on the rise in the real estate market.
By Maria Josefina Lanzi
Palermo, Recoleta, San Nicolás, Belgrano, Retiro and Monserrat concentrate the largest proposal for temporary rentals in the city
If you are thinking about offering your apartment as a temporary rental , a study shows which are the six neighborhoods that concentrate the greatest offer in the city of Buenos Aires. The Real Estate Monitor , created by Daniel Bryn, surveyed the number of temporary rentals in each of the city's neighborhoods and recorded that Palermo, Recoleta, San Nicolás, Belgrano, Retiro and Monserrat concentrate the largest proposal.
The study takes AIRDNA as a source, a site where information on AirBNB platforms is published . 70% of the temporary offer is concentrated in these six neighborhoods, with Palermo leading the list with 7,402 posts; Recoleta follows (3147); then Saint Nicholas (1401); Belgrano (1125); Retiro (1044) and Monserrat (913).
Temporary rentals are usually one-room or two-room apartments, mostly furnished and well-equipped.
“The main reason why these neighborhoods are chosen is the location : they are looking for quick access to transportation and the possibility of easily reaching entertainment, cultural, gastronomic or social places,” said Daniel Bryn. The price of each rental varies depending on the quality of the building and the features it offers, such as having a good internet signal, a place that is pleasantly equipped and with good light. The AirBNB rating also has a lot of influence, since if the service is good and generates a good score, it ranks better, which allows it to charge higher prices and gain trust among searching users.
“The reasons for choosing areas are very varied depending on each neighborhood; If you're a younger person, you'll probably aim for Palermo , because you know you'll find nightlife there ; If you are an older person, you will probably choose something closer to Recoleta and the gastronomic offer and shops that are offered there,” said Jimena Gómez, property manager (administrator of temporary rental properties). Always referring to short terms of a few days or two weeks.
For her part, Soledad Balayan, owner of Maure Inmobiliaria, assures that in the case of temporary rentals with a longer period of time, up to three months, the reasons for the search are more linked to other reasons, such as “being close to a university.” for those who come to do postgraduate or undergraduate studies, or the proximity to a hospital or medical institution, when it comes to a trip for some health treatment.”
A good harvest for the seasonal market
The Real Estate Monitor study details that as of November, 21,367 properties were recorded for temporary rental in the city of Buenos Aires . “In the last year, there was 60% more, compared to what was registered last year,” said Daniel Bryn, head of Invertire. He explains that this increase is due to the fact that, today, temporary rental is a bigger business than traditional rental. In this sense, Jimena Gómez comments that “with the rental law, the income is much higher for temporary workers; Furthermore, you are not risking having someone tied to a contract for three years and with income that devalues in a short time.”
In November, 21,367 properties were counted for temporary rental in the City of Buenos Aires.
According to the report, in the month of November, the gross monthly income of a temporary worker was US$694, while that of a traditional rental was US$312. “Today, temporary rental is a business , because it can be rented in dollars, something that the rental law does not allow for traditional rentals . It also has greater flexibility, since if one wants to sell it or needs it for a family member, they have the possibility of using it more easily,” commented Balayan. He adds that it is necessary to take into account, within profitability, the initial investment to fully equip it and the replacement of what is broken.
The occupancy of these temporary rentals is not fixed throughout the year, but varies according to seasonality.
The occupancy of temporary rentals is not fixed throughout the year, but varies according to seasonality. “There are times when occupancy is higher, generally it is the first five months of the year , and after that period it decreases a little,” said Bryn and details that the average occupancy per year in the city of Buenos Aires is usually of 65/70%.
The study also shows that 75% of the temporary offer is the studio apartment , since travelers who visit Argentina usually look for something analogous to a hotel room but with the added bonus of having a kitchen, laundry room and even amenities in the room. building.
75% of the temporary rental offer is for 1 room.
Traditional rentals: a turbulent market
The current rental law enacted in 2020 and with changes made in October 2023 has crushed the real estate market. Nowadays, the index and the period at which prices are updated, added to inflation, make traditional rentals an unprofitable business.Landlords lose out against inflation, so prices have skyrocketed and the supply of traditional rental properties has decreased dramatically. “You have an income in pesos frozen for six months (the minimum amount of time allowed by current law to make adjustments), with the impossibility of using the property or having it available at any time you need it. The extension of a three-year contract and this level of inflation and uncertainty make it an unattractive market,” added Soledad Balayan.
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