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The Rental Law died: it was the best February in six years for property sales - El Cronista
Source:
March 25, 2024
It was the best February in six years for the sale and purchase of properties, reported the College of Notaries of the City of Buenos Aires. What could happen if the rejection of Milei's DNU advances in the Congeso
The Rental Law died: it was the best February in six years for property sales
By Belen Fernandez
Property sales continue to show signs of recovery. According to the deed report that the Buenos Aires College of Notaries released this Monday, in February 2,213 purchase-sale operations were registered , which translates into 27.3% more than the same month of the previous year.
However, the outstanding data is the average ticket of the operations: US$87,065 . This reflects that the most sold were units with between one and two rooms, which, they explain in the sector, means that the movement was driven, mainly, by investors, who once again saw a business in the purchase of apartments, both to resell in the medium term -due to current low prices- and for rent.
February was the month following the repeal of the Rental Law that produced the DNU signed by Javier Milei . During those days, in addition, the norm was not expected to have a legislative setback like the one it had in mid-March in the Senate.
"There is a lot of awareness that the prices we have today are of opportunity. The first thing that is going to disappear is the offer below US $100,000. The truth is that apartments are available for US$50,000 that, in 2017, cost $100,000 ," explained Fabián Achával, owner of the real estate company of the same name and real estate advisor .
According to the latest data from Zonaprop, since 2018, prices have accumulated a decrease of 25% in publication values, while the decrease in closing prices has reached a deceleration of 35%. Today they arrived at their apartment and the slow stage of recovery began.
" Investors see a recapitalization business because, in the short term, prices will rise. In addition, the repeal of the law was added, which once again boosted the rental business," he added.
The year began with positive numbers for the sector, despite these being seasonal months, when demand is usually low due to summer holidays. According to data from the College of Notaries, compared to January 2024, purchase and sale acts increased by 17.6 percent.
"It is the best February in the last six years, even pre-pandemic (2019). It is a slight upward curve, a kind of step by step. Seasonally, the first two months of the year are the least active. But this February had an important activity," said Jorge de Bartolo, president of the Buenos Aires College of Notaries .
According to data from the Argentine Real Estate Chamber (CIA) , the supply of apartments for rent doubled in just one month after the DNU. And, in January and February, it grew by 160% , which also slowed the rise in values which, in February, was barely 3%, according to the latest Zonaprop survey.
Today, the profitability of a rental apartment, according to data from Zonaprop, is 4.7%, double the numbers recorded two years ago, when the values were close to 2.5%. This changed due to the fall in sales prices and the recomposition, above inflation, of rents.
In one year, rental prices rose 320%. In January the value of an average two-bedroom in Caba was $99,000. Today that number climbed to more than $420,000 as a result of the Rental Law.
The thing is that supply was reduced to its historical values and prices skyrocketed above inflation.
But after the Senate rejected Milei's DNU, which includes the end of the Rental Law, the purchase and sale operations went into standby because they fear that the old rule will come into force again.
The repeal of the Rental Law boosted demand to buy properties in February
"There is a demand that we still see in small properties with low tickets. They offer rent, through conventional as well as temporary rentals ," explained Achával. However, he acknowledged that the storm will have to pass and see what happens with the DNU in Deputies for the demand to take hold or, on the contrary, fall.
In February, 67% of Buenos Aires neighborhoods registered a monthly price increase, although in most cases it is just a few hundredths. "Still, in the market, there are opportunities. The investor knows that he buys today but tomorrow prices rise ," said Achával.
Thus, for example, a one-bedroom apartment of just over 30 square meters (m2) in Palermo has a value of US$42,000. "They are ideal cases to renovate, furnish and rent temporarily," said the businessman, whose real estate agency is marketing that property .
A two-bedroom in Almagro ( Bulnes at 700), with 40 m2, has a publication value of US$54,100. "There are opportunities and owners who need to sell. The greatest demand comes today for this type of units," concluded Achával.
www.buysellba.com
Source:
March 25, 2024
It was the best February in six years for the sale and purchase of properties, reported the College of Notaries of the City of Buenos Aires. What could happen if the rejection of Milei's DNU advances in the Congeso
The Rental Law died: it was the best February in six years for property sales
By Belen Fernandez
Property sales continue to show signs of recovery. According to the deed report that the Buenos Aires College of Notaries released this Monday, in February 2,213 purchase-sale operations were registered , which translates into 27.3% more than the same month of the previous year.
However, the outstanding data is the average ticket of the operations: US$87,065 . This reflects that the most sold were units with between one and two rooms, which, they explain in the sector, means that the movement was driven, mainly, by investors, who once again saw a business in the purchase of apartments, both to resell in the medium term -due to current low prices- and for rent.
February was the month following the repeal of the Rental Law that produced the DNU signed by Javier Milei . During those days, in addition, the norm was not expected to have a legislative setback like the one it had in mid-March in the Senate.
"There is a lot of awareness that the prices we have today are of opportunity. The first thing that is going to disappear is the offer below US $100,000. The truth is that apartments are available for US$50,000 that, in 2017, cost $100,000 ," explained Fabián Achával, owner of the real estate company of the same name and real estate advisor .
According to the latest data from Zonaprop, since 2018, prices have accumulated a decrease of 25% in publication values, while the decrease in closing prices has reached a deceleration of 35%. Today they arrived at their apartment and the slow stage of recovery began.
" Investors see a recapitalization business because, in the short term, prices will rise. In addition, the repeal of the law was added, which once again boosted the rental business," he added.
The year began with positive numbers for the sector, despite these being seasonal months, when demand is usually low due to summer holidays. According to data from the College of Notaries, compared to January 2024, purchase and sale acts increased by 17.6 percent.
"It is the best February in the last six years, even pre-pandemic (2019). It is a slight upward curve, a kind of step by step. Seasonally, the first two months of the year are the least active. But this February had an important activity," said Jorge de Bartolo, president of the Buenos Aires College of Notaries .
January and February showed a strong increase in purchase and sale operations. Today, investing in rental bricks is attractive again.
Furthermore, he added: "Likewise, we are attentive to macroeconomic factors, which would be a much-needed incentive for the sector: when there was credit, we had twice as many operations."What happens in March
"The market began to settle down in November, when Milei won the runoff. There, the road to recovery began. Many properties that were for sale turned to rentals and many low ticket properties were sold to bet on the rent. "That scenario occurred until mid-March. Today, we enter a moment of uncertainty again," added Marta Liotto, owner of the real estate company that bears her name and former president of the College of Real Estate Brokers of the City of Buenos Aires (Cucicba). .According to data from the Argentine Real Estate Chamber (CIA) , the supply of apartments for rent doubled in just one month after the DNU. And, in January and February, it grew by 160% , which also slowed the rise in values which, in February, was barely 3%, according to the latest Zonaprop survey.
Today, the profitability of a rental apartment, according to data from Zonaprop, is 4.7%, double the numbers recorded two years ago, when the values were close to 2.5%. This changed due to the fall in sales prices and the recomposition, above inflation, of rents.
In one year, rental prices rose 320%. In January the value of an average two-bedroom in Caba was $99,000. Today that number climbed to more than $420,000 as a result of the Rental Law.
The thing is that supply was reduced to its historical values and prices skyrocketed above inflation.
But after the Senate rejected Milei's DNU, which includes the end of the Rental Law, the purchase and sale operations went into standby because they fear that the old rule will come into force again.
The repeal of the Rental Law boosted demand to buy properties in February
"There is a demand that we still see in small properties with low tickets. They offer rent, through conventional as well as temporary rentals ," explained Achával. However, he acknowledged that the storm will have to pass and see what happens with the DNU in Deputies for the demand to take hold or, on the contrary, fall.
Prices
The average sales value in the city was US$2,192 per m2 in February, with an increase in the last eight months of just 1.9% since July 2023, according to data from Zonaprop.In February, 67% of Buenos Aires neighborhoods registered a monthly price increase, although in most cases it is just a few hundredths. "Still, in the market, there are opportunities. The investor knows that he buys today but tomorrow prices rise ," said Achával.
Thus, for example, a one-bedroom apartment of just over 30 square meters (m2) in Palermo has a value of US$42,000. "They are ideal cases to renovate, furnish and rent temporarily," said the businessman, whose real estate agency is marketing that property .
A two-bedroom in Almagro ( Bulnes at 700), with 40 m2, has a publication value of US$54,100. "There are opportunities and owners who need to sell. The greatest demand comes today for this type of units," concluded Achával.
www.buysellba.com
