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The supply of apartments in CABA has been reduced by 40% in two years: how many units are for sale and in which neighborhoods - Infobae
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www.infobae.com
September 18, 2024
A private study has detected a sharp decline in the number of properties listed for sale. The reasons. What types of housing are most in demand after the return of mortgage credit and money laundering
By Jose Luis Cieri
Although there are almost 67,000 apartments for sale in CABA, the supply has dropped by 40% from the maximum levels
A private study confirmed that the supply of apartments for sale in the city of Buenos Aires has decreased by 40.72% since October 2022, which means a drop of 45,794 published units (110,000 were published at its highest and record level). Currently, there are 66,656 apartments available on the different real estate portals, although a slight increase was recently recorded, of 1.07% in the last 30 days.
This adjustment in the real estate market is due to various factors that explain the drop in listings, while some types of housing, especially the most affordable ones, registered an increase in demand driven by the reintroduction of mortgage loans and money laundering.
This was confirmed by a new study by the Statistical Observatory of the Real Estate Sector, which belongs to the Buenos Aires Real Estate Association.
Miguel Chej Musse , coordinator of the Observatory, told Infobae that “since October 2022, the supply of apartments for sale in CABA has decreased considerably, due to several factors. One of the main ones is that what was sold was not replaced, since several sellers believe that the price per square meter is still low and prefer to wait for it to rise before putting their properties back on the market. In addition, the DNU that repealed the Rental Law favored the transfer of apartments from sale to rent, further reducing the available stock.”
Furthermore, with no sales to be made until 2023, several owners decided to withdraw their properties from the market or postpone the sale. “The lack of access to mortgage loans until last April and the economic uncertainty caused many to opt for renting instead of selling. In addition, buyers are more cautious, waiting for better conditions or price adjustments to complete a transaction,” added Jimena Maderna , from Maderna Relaciones Inmobiliarias.
“The number of deeds formalized is expected to increase in the coming months due to pent-up demand. Buyers perceive that the value of m2 (average USD 2,100 according to Cabaprop) is lower today than in the future, so those who do not buy now could end up acquiring smaller properties in the future,” added Chej Musse.
According to the report, the deeds showed a year-on-year increase of 47.33% (July 2024 versus the same month in 2023), while the monthly variation (July compared to June) registered an increase of 16.87 percent.
Regarding searches on portals, it is observed that 45% of those interested in purchasing properties are between 25 and 44 years old, many of them seeking to take advantage of mortgage loans.
Chej Musse added: “On the other hand, the owners who sell are mainly people over 60 years old, and 80% of property owners in Buenos Aires are retirees.”
Areas such as Palermo, Belgrano and Núñez are among the most sought after due to their excellent location, access to services and quality of life.
“Additionally, buildings that offer amenities or recreational spaces are in high demand, as buyers value these benefits when making a decision,” said Maderna.
One-bedroom apartments, preferably with balconies or exterior connections, are among the most sought after in CABA (Illustrative Image Infobae)
High-demand neighborhoods maintain competitive prices, competing in a range of affordable and fair prices for the current market. Although prices hit their lowest point and the used market fell by an average of 40% between June 2018 and August of last year, several neighborhoods such as Colegiales, Villa Ortúzar and Almagro began to appreciate, with increases of up to 12% year-on-year, according to an analysis by Mercado Libre and the University of San Andrés (UDESA).
Maderna explained: “The change in trend in the market is largely due to the recent repeal of the Rental Law. Today, buyers are mostly investors looking to generate future income, taking advantage of the possible implementation of money laundering measures and focusing on studio and 1-bedroom properties.”
Meanwhile, those looking for their own home remain active in the market, approaching offers that are usually between 3% and 7% below the published price, “always looking for investment opportunities with competitive prices,” added Maderna.
Closing prices for purchase and sale transactions in Recoleta, Palermo and Belgrano are between USD 2,000 and USD 2,500 per m2. Palermo stands out as the one that has increased the most, reaching USD 2,800 per m2.
Looking to the immediate future, the first stage of the money laundering process, with a deadline of 30 September, will also inject fresh money into the market, allowing people who previously could not justify funds to carry out transactions.
Chej Musse concluded: “This is expected to promote the purchase of both used properties and apartments in condominiums. However, although market absorption has improved in recent months, it remains low and should exceed 7% or reach 8% to stabilise.”
www.buysellba.com
Source:
La oferta de departamentos en CABA se redujo 40% en dos años: cuántas unidades están a la venta y en qué barrios
Un estudio privado detectó la fuerte contracción de los inmuebles publicados para la venta. Los motivos. Qué tipos de viviendas son más demandadas tras la vuelta del crédito hipotecario y el blanqueo
www.infobae.com
September 18, 2024
A private study has detected a sharp decline in the number of properties listed for sale. The reasons. What types of housing are most in demand after the return of mortgage credit and money laundering
By Jose Luis Cieri
Although there are almost 67,000 apartments for sale in CABA, the supply has dropped by 40% from the maximum levels
A private study confirmed that the supply of apartments for sale in the city of Buenos Aires has decreased by 40.72% since October 2022, which means a drop of 45,794 published units (110,000 were published at its highest and record level). Currently, there are 66,656 apartments available on the different real estate portals, although a slight increase was recently recorded, of 1.07% in the last 30 days.
This adjustment in the real estate market is due to various factors that explain the drop in listings, while some types of housing, especially the most affordable ones, registered an increase in demand driven by the reintroduction of mortgage loans and money laundering.
This was confirmed by a new study by the Statistical Observatory of the Real Estate Sector, which belongs to the Buenos Aires Real Estate Association.
Miguel Chej Musse , coordinator of the Observatory, told Infobae that “since October 2022, the supply of apartments for sale in CABA has decreased considerably, due to several factors. One of the main ones is that what was sold was not replaced, since several sellers believe that the price per square meter is still low and prefer to wait for it to rise before putting their properties back on the market. In addition, the DNU that repealed the Rental Law favored the transfer of apartments from sale to rent, further reducing the available stock.”
Furthermore, with no sales to be made until 2023, several owners decided to withdraw their properties from the market or postpone the sale. “The lack of access to mortgage loans until last April and the economic uncertainty caused many to opt for renting instead of selling. In addition, buyers are more cautious, waiting for better conditions or price adjustments to complete a transaction,” added Jimena Maderna , from Maderna Relaciones Inmobiliarias.
Scriptures upwards
In July, 5.06% of the supply was signed and, according to data from the College of Notaries of Buenos Aires, almost 5,000 notarial acts were carried out, the best record after 74 months . To sell the entire stock, it would take 20 months (if no new supply were to enter). The neighborhoods with the highest average supply on portals are Palermo, Belgrano, Caballito, Recoleta and Villa Urquiza, according to the Observatory's work.“The number of deeds formalized is expected to increase in the coming months due to pent-up demand. Buyers perceive that the value of m2 (average USD 2,100 according to Cabaprop) is lower today than in the future, so those who do not buy now could end up acquiring smaller properties in the future,” added Chej Musse.
According to the report, the deeds showed a year-on-year increase of 47.33% (July 2024 versus the same month in 2023), while the monthly variation (July compared to June) registered an increase of 16.87 percent.
Regarding searches on portals, it is observed that 45% of those interested in purchasing properties are between 25 and 44 years old, many of them seeking to take advantage of mortgage loans.
Chej Musse added: “On the other hand, the owners who sell are mainly people over 60 years old, and 80% of property owners in Buenos Aires are retirees.”
Most Wanted
In this scenario, studio and 1-bedroom apartments are the most sought after, mainly by investors who wish to obtain a secure income.Areas such as Palermo, Belgrano and Núñez are among the most sought after due to their excellent location, access to services and quality of life.
“Additionally, buildings that offer amenities or recreational spaces are in high demand, as buyers value these benefits when making a decision,” said Maderna.
One-bedroom apartments, preferably with balconies or exterior connections, are among the most sought after in CABA (Illustrative Image Infobae)
High-demand neighborhoods maintain competitive prices, competing in a range of affordable and fair prices for the current market. Although prices hit their lowest point and the used market fell by an average of 40% between June 2018 and August of last year, several neighborhoods such as Colegiales, Villa Ortúzar and Almagro began to appreciate, with increases of up to 12% year-on-year, according to an analysis by Mercado Libre and the University of San Andrés (UDESA).
Maderna explained: “The change in trend in the market is largely due to the recent repeal of the Rental Law. Today, buyers are mostly investors looking to generate future income, taking advantage of the possible implementation of money laundering measures and focusing on studio and 1-bedroom properties.”
Meanwhile, those looking for their own home remain active in the market, approaching offers that are usually between 3% and 7% below the published price, “always looking for investment opportunities with competitive prices,” added Maderna.
Closing prices for purchase and sale transactions in Recoleta, Palermo and Belgrano are between USD 2,000 and USD 2,500 per m2. Palermo stands out as the one that has increased the most, reaching USD 2,800 per m2.
Looking to the immediate future, the first stage of the money laundering process, with a deadline of 30 September, will also inject fresh money into the market, allowing people who previously could not justify funds to carry out transactions.
Chej Musse concluded: “This is expected to promote the purchase of both used properties and apartments in condominiums. However, although market absorption has improved in recent months, it remains low and should exceed 7% or reach 8% to stabilise.”
www.buysellba.com
