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The triumphant return of apartments that were forgotten for years and today activate market demand - La Nacion Propiedades
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Los departamentos más buscados que prometen revalorizarse por la escasa oferta que hay en el mercado
La tipología de departamentos que menos stock tiene hoy en día, por la crisis económica de las últimas décadas, ahora se reactiva y da signos positivos: ¿cuál es el motivo y cuánto cuestan?
www.lanacion.com.ar
November 08, 2024
The type of apartment that has the least stock today, due to the economic crisis of the last decades, is now reactivated and showing positive signs: what is the reason and how much do they cost?
By Fernando Torres Ullmer
Four-room apartments were forgotten by builders and are now in fashion
In the last 30 years, these were the ones that were built the least , but at the same time, they are the ones that Buenos Aires families demand the most. Three- bedroom apartments are the most difficult to find in the real estate market , since developers in recent decades have turned to building studio apartments, units that are easier to place and more profitable. But now, that has changed. Has the hegemony of studio apartments ended?
During the last three years, the market was kept alive by investors who mainly bought studio apartments, because they were the most rented units and, at the same time, they were the units with the lowest prices, according to specialists.
“Something important to mention is that in times of crisis, large units are rarely built as developers and construction companies seek refuge in smaller apartments,” says Hernán Nucifora, CEO of Global Investments.
In addition to the crisis, Diego Rybka, commercial director of Uno en Uno, adds another fact about the dynamics of this type: “It is a scarce market. Today people are looking for two- and three-bedroom units that are larger than what is on offer. There is little stock of four-room apartments and those that are available have few square meters; there are no “dream” three-bedroom apartments, which are ultimately what families want today.” The developer is building a project called Vyre in Virrey del Pino, Belgrano, where a four-room apartment costs US$950,000 with a garage included.
There is a striking figure given by Germán Gómez Picasso, founder of Reporte Inmobiliario: at the end of 2023 there were only 39 three-bedroom apartments on offer in CABA , however, the number has doubled today as a result of the repeal of rents; because there is a greater supply concentrated in the following neighborhoods: Palermo, Barrio Norte, Caballito and Recoleta. Added to the “rental law” factor, end consumers are now beginning to gain relevance, who with the return of mortgage loans, are looking for larger units.
The three-bedroom units are being built again
“Today, this type of property is being built again because there is demand. Therefore, with many interested parties and little supply, the apartments are well received in the market ,” says Nucifora, adding: “In a project I carried out in Libertador and Sturiza, these apartments were bought by end consumers. We had a very good reception, with a square meter value of US$4,500 because there are no apartments of this size in Puerto de Olivos, where the project is located.”
“ They are being built again. The market for this type of unit has seen a resurgence in recent years, in fact, the construction of this type of unit has increased due to high demand ,” says Federico Rosbaco, CEO of Rosbaco & Partners, who is developing several projects in the City designed for families, one of them is called Cinco in Belgrano, another Vía Holmberg in Villa Urquiza and the third Vía Crámer in Colegiales.
Along the same lines, developer Martín Piantoni, from Alton, confesses that in one of the projects he has underway in Devoto on Chivilcoy and Marcos Sastre streets, he had to generate three- and four-bedroom units at the request of the demand . “We were able to do it because it is a triple front that was thought of in a modular way, which allowed us that flexibility,” explains the developer, detailing that these typologies measure between 120 and 220 square meters. “It is a project with a seven-story building that also has two- and three-room units. It will be completed in April 2025,” adds the developer, who has 15 projects and three in full execution.
The interior of one of Alton's units
Another developer of this type who highlights the above is Hernán Pisarenko, commercial director of HA Desarrollos, who explains: “ The four-room apartments are the properties that cost the most to build, but clearly, due to the shortage of stock, when the market recovers, they are the first to show a shortage.” Pisarenko, like other developers, turned to this type of unit and with an investment of US$15 million is developing, among others, Grand Atlántida in San Telmo .
Mortgage credit boosted the growth of large apartments Gentleness
Credit was a major driver of this type of property. “The market is active and more units have started to be built because the money laundering also boosted demand,” says Pablo Masoero, Commercial Director of Unité Quartier, who has two projects with large units: Quartier Bajo Belgrano, in which US$150 million will be allocated , and the other project is Quartier Lacroze, with an investment of US$60 million. In the project in Bajo Belgrano, a 125 square meter unit is worth US$810,000.
Another variable that altered the market was that half of the people who left the Federal Capital during the pandemic are now returning to the City, as explained by Diego Rybka: “ The three-bedroom apartments are sought by families, those families were the ones who went to live in the country houses due to the pandemic , today 50% of them returned and want large spaces; therefore, demand is increasing.”
“We are seeing a lot of potential because there are people who are tired of their houses and their maintenance, and who now see three-bedroom apartments as a very solid housing alternative,” says Nucifora. “The most in-demand ones are those that are in good condition. Regarding the demand from families, many who lived in houses on the street are looking for security ,” adds Gómez Picasso.
Another reason is explained by Rosbaco: “The change in priorities generated by the pandemic lockdown made many people value space and comfort in their homes more ,” says the developer, adding another unexpected argument: the growth of large or blended families looking for apartments with more rooms.
They are sought after by large families and by people who no longer want to maintain a house. Shutterstock
A key point that explains why developers are reluctant to do this type of project is the business model of the projects in the off-plan stage: pre-sales are offered and this type of apartment requires high ticket prices, which reduces the universe of potential investors who can afford to pay the 30% advance and monthly installments in pesos adjusted by CAC. In addition, in cases where the demand comes from the end consumer, the scheme is also complicated because they are usually families who have to sell the property in which they live to pay for the apartment, therefore they cannot go into the off-plan stage. For this reason, developers are very careful when they move forward with this type of venture: it is not easy to find investors to finance them.
How much does it cost to rent a three-bedroom apartment per neighborhood?
For those who do not have the option of reaching the ticket that this type of units requires, another option is to rent. But, how much does a rental of these apartments cost? LA NACION had access to a survey that details how much a contract for a surface area of 115 square meters costs. On average, an apartment of these characteristics in CABA defended a value of $1,109,424 per month, however, taking into account the five most sought-after neighborhoods, the numbers grow:- Nuñez: $1,268,300
- Palermo: $1,237,700
- Chacarita: $1,220,200
- Colegiales: $1,186,400
- Belgrano: $1,177,000
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