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The rental offer grew by 200%, but so did the demand: how long does it take to close a deal in CABA today? - Infobae
Source:
www.infobae.com
January 14, 2025
Between 12,000 and 13,000 contracts are signed each month and most choose to renew them in the current real estate market scenario. Who is driving demand?
By Jose Luis Cieri
The elimination of the Rental Law reconfigured the real estate market in Buenos Aires, fostering a wide availability of properties and flexibility in contracts (Illustrative image Infobae)
In a context of a 200% expansion in the rental offer since the Rental Law ceased to apply , demand has also grown significantly. During this time of summer, real estate agencies receive inquiries from tenants who must renew their contract because the current one is ending or are looking for a new home in the city of Buenos Aires.
The difference with the beginning of last summer is that there are now 1, 2 or 3-room apartments available in most of the Buenos Aires neighborhoods, something that contrasts with the situation a year ago, when the rental market was just deregulated. However, it is difficult to find 4-room properties, although in the other segments there are options in almost all of the city.
Alejandro Braña, a real estate expert and member of the Buenos Aires Real Estate Association, explained to Infobae that several families choose this time of year to look for housing due to work and school obligations. “Changing residence involves a complex process, which is made easier when there is extra time. This usually coincides with the summer months, allowing families to organize themselves so that they can get to the end of February with everything sorted before the start of the school year,” he said.
With consultations with real estate agencies and better opportunities to visit the property before renting it, the sector acknowledged that the repeal of the Rental Law reassured property owners.
“Now they can offer properties with shorter terms and greater predictability regarding inflation. The improvement in profitability made traditional rentals attractive, increasing the variety and availability of properties,” said Soledad Balayan , market analyst and Maure Inmobiliaria.
The DNU that repealed the regulations created in June 2020 managed to boost the market. Currently, there are about 16,000 properties available in the city, and 90% of new contracts are made in pesos .
Balayan explained that while the law was in force, it was almost impossible to find apartments for rent in pesos for long periods. “Now we are seeing an explosion of supply that has even reduced the initial listing prices, allowing some tenants to move to more attractive and affordable properties.”
Until the end of 2023, traditional rental appraisals fell sharply. “This led several owners, even those with more than 20 years of experience in renting properties, to opt for alternatives such as selling, temporarily renting, lending the properties to acquaintances or leaving them empty,” Balayan said.
At this time in January, the demand for students who must move to CABA increased because some courses begin in February, especially in private universities.
Regarding students, Braña noted that many temporarily leave their homes in December to return in March. However, he clarified that this segment does not face the problems of the last three years, when the rental offer was zero. “Now, with the repeal of the law, students have more options, although distance learning is also an alternative that avoids moving,” he added.
Source: Maure Real Estate
This is key because those who rent for a period of 8 to 10 months do not usually move their belongings back and forth. Some owners choose to offer a value package that includes the monthly rent, expenses, water, ABL and even WI-FI internet service.
Due to the increase in supply, it now takes more than 35 days to rent an apartment in the city. Tenants can take their time to schedule visits and make a decision, unlike at the end of 2023, when several properties were rented without being seen beforehand.
University students and young couples join the general demand for rentals after overcoming years affected by the pandemic and restrictions due to the lack of available units (Illustrative Image Infobae)
Braña said: “With the repeal of the law, contracts can be adjusted to the exact period of occupation, the obligation of three-year agreements and additional costs such as surety bonds have been eliminated.”
For tenants, he recommends looking for properties within their budget, checking updated expenses and avoiding hasty decisions.
Balayan concluded: “I suggest that owners adjust their expectations to the market, present properties in good condition and consider competitive prices to close contracts in less time with better-profile tenants.”
www.buysellba.com
Source:
Creció 200% la oferta de alquileres, pero también la demanda: cuánto demora cerrar hoy una operación en CABA
Se concluyen entre 12.000 y 13.000 contratos mensuales y la mayoría opta por renovarlos en el actual escenario del mercado inmobiliario. Quiénes impulsan la demanda
www.infobae.com
January 14, 2025
Between 12,000 and 13,000 contracts are signed each month and most choose to renew them in the current real estate market scenario. Who is driving demand?
By Jose Luis Cieri
The elimination of the Rental Law reconfigured the real estate market in Buenos Aires, fostering a wide availability of properties and flexibility in contracts (Illustrative image Infobae)
In a context of a 200% expansion in the rental offer since the Rental Law ceased to apply , demand has also grown significantly. During this time of summer, real estate agencies receive inquiries from tenants who must renew their contract because the current one is ending or are looking for a new home in the city of Buenos Aires.
The difference with the beginning of last summer is that there are now 1, 2 or 3-room apartments available in most of the Buenos Aires neighborhoods, something that contrasts with the situation a year ago, when the rental market was just deregulated. However, it is difficult to find 4-room properties, although in the other segments there are options in almost all of the city.
Alejandro Braña, a real estate expert and member of the Buenos Aires Real Estate Association, explained to Infobae that several families choose this time of year to look for housing due to work and school obligations. “Changing residence involves a complex process, which is made easier when there is extra time. This usually coincides with the summer months, allowing families to organize themselves so that they can get to the end of February with everything sorted before the start of the school year,” he said.
With consultations with real estate agencies and better opportunities to visit the property before renting it, the sector acknowledged that the repeal of the Rental Law reassured property owners.
“Now they can offer properties with shorter terms and greater predictability regarding inflation. The improvement in profitability made traditional rentals attractive, increasing the variety and availability of properties,” said Soledad Balayan , market analyst and Maure Inmobiliaria.
The DNU that repealed the regulations created in June 2020 managed to boost the market. Currently, there are about 16,000 properties available in the city, and 90% of new contracts are made in pesos .
Balayan explained that while the law was in force, it was almost impossible to find apartments for rent in pesos for long periods. “Now we are seeing an explosion of supply that has even reduced the initial listing prices, allowing some tenants to move to more attractive and affordable properties.”
Until the end of 2023, traditional rental appraisals fell sharply. “This led several owners, even those with more than 20 years of experience in renting properties, to opt for alternatives such as selling, temporarily renting, lending the properties to acquaintances or leaving them empty,” Balayan said.
Who drives and energizes
In CABA, between 12,500 and 13,000 contracts are signed monthly. Of these, two thirds are renewed, while the rest correspond to new agreements due to changes in area or space needs. Braña added: “The current flexibility allows us to adapt to the specific needs of tenants.”At this time in January, the demand for students who must move to CABA increased because some courses begin in February, especially in private universities.
Regarding students, Braña noted that many temporarily leave their homes in December to return in March. However, he clarified that this segment does not face the problems of the last three years, when the rental offer was zero. “Now, with the repeal of the law, students have more options, although distance learning is also an alternative that avoids moving,” he added.
Source: Maure Real Estate
This is key because those who rent for a period of 8 to 10 months do not usually move their belongings back and forth. Some owners choose to offer a value package that includes the monthly rent, expenses, water, ABL and even WI-FI internet service.
Due to the increase in supply, it now takes more than 35 days to rent an apartment in the city. Tenants can take their time to schedule visits and make a decision, unlike at the end of 2023, when several properties were rented without being seen beforehand.
Values
A report from the Scalabrini Ortiz Studies Center (CESO) details the average rental prices for apartments in CABA and their year-on-year variations:- studio: $390,000 per month (+56%).
- 1 bedroom: $480,000 per month (+60%).
- 2 bedrooms: $692,500 per month (+47.3%).
Owners' strategies
In a competitive market, property owners are looking to highlight their properties with furnished properties and prices that include expenses, services and internet connection.
University students and young couples join the general demand for rentals after overcoming years affected by the pandemic and restrictions due to the lack of available units (Illustrative Image Infobae)
Braña said: “With the repeal of the law, contracts can be adjusted to the exact period of occupation, the obligation of three-year agreements and additional costs such as surety bonds have been eliminated.”
Negotiations and recommendations
The current wide supply has shifted the negotiating power to tenants. “Those looking to rent can take the time to analyze alternatives and choose more freely between different areas,” said Balayan.For tenants, he recommends looking for properties within their budget, checking updated expenses and avoiding hasty decisions.
Balayan concluded: “I suggest that owners adjust their expectations to the market, present properties in good condition and consider competitive prices to close contracts in less time with better-profile tenants.”
www.buysellba.com
