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The unexpected area where rents leave the highest income on the market: 10% in dollars - La Nacion Propiedades
Source:
August 28, 2024
An area is positioned as ideal for investment, since it has a constant demand throughout the year and that far exceeds the supply.
By Maria Josefina Lanzi
The area where it is convenient to invest because demand far exceeds supply Soldiers
Vaca Muerta is a name that resonates more and more in the ears of Argentines. It is not only the second largest gas reserve and the fourth largest unconventional oil reserve in the world , but also a place where there is an attractive combination for those looking to invest in real estate: it promises tenants all year round and a demand for rental apartments that far exceeds the supply. In addition, it is the same oil companies that take charge of the contracts.
In this town, which generates 55% of the total oil production and 65% of the country's gas, " currently there are approximately 55,000 workers," according to figures from Fernando Banderet, mayor of Añelo. However, he explains that the real estate offer that exists for these workers is not sufficient: he assures that they do not have exact figures, but they know that there are 15,000 workers living and working in the city, and 20,000 vehicles that travel every day to Añelo, from which it is estimated that 40,000 more workers are transported to the basin (which involves construction workers in oil fields, the oil union, truck drivers, security guards, etc.).
This is a town with a different way of life than the conventional one: employees work for 15 days straight and, to rest at the end of each of those days, they generally travel to Neuquén, one of the closest cities, although located 100 km from Añelo, due to the lack of accommodation in that city. “The road they travel is a highway, loaded with trucks, on a journey that usually takes an hour and a quarter or an hour and a half, although it takes up to three during rush hour. To this must be added the costs of overtime that it entails for the company and the wear and tear that this transfer implies,” shares Eduardo Bagnato, director of ventures at Toribio Achával, who markets Altos Neuquinos in Añelo, a project of three buildings that will add 600 apartments.
Añelo is the area where more and more developers are launching real estate projects Soldiers
Vaca Muerta is the second largest gas reserve and the fourth largest unconventional oil reserve in the world
A fact that reveals the importance of the activity is the one shared in the latest report of Argentine Commercial Exchange (ICA), published by Indec: it states that, only in oil, the country exported 60.2% more in the first six months of 2024 than it achieved in the same period of 2023. In fact, the study reveals that it is the sub-sector that grew the most in the last year, after seeds and oilseeds. “Today we have only 8% of the basin exploited and if work begins in the rest of Vaca Muerta, more people will be needed to work there. The recent visit of the President means that there will be a strong commitment to continue developing the activity,” shares the mayor.
Considering the numbers currently generated by the basin, the development of real estate projects is positioned as something urgent. The town of Añelo is one of the closest towns to Vaca Muerta and, in fact, it is growing more and more in real estate developments, since, in the words of Bagnato, it is “ a business in which you do not need to go out looking for tenants .” The wells work 24 hours a day, and the need for workers and a roof to live under is constant. “Last year a consulting firm made a projection of how much the area would grow and estimated that in 2030 Añelo will have 50,000 permanent inhabitants ,” says Banderet.
The mayor of Añelo also reveals that, currently, “7,500 new beds are under construction, which are estimated to be ready during this year and the next, of which 90% already have signed rental contracts.” For their part, they are reforming the urban planning code of Añelo, in which they will require developers who undertake projects in the area to build homes that can then be purchased by workers ; this purchase will be facilitated through a mortgage loan that will be granted by Banco Nación, of which details are not yet known. “We want workers to move there with their families, have a sense of belonging to the place and generate benefits for the community,” says Banderet.
The real estate business in Vaca Muerta is different from that of a traditional rental market. In this case, the tenant is actually the company, which rents these units so that its workers can work in the extraction of oil . The business model is a turnkey service, where the developers manage the projects and are usually in charge of managing the contracts, equipping the houses and providing the administration, maintenance and security services (including the service of washing bed linen and cleaning the place).
The real estate offer that exists in the area for these workers only reaches 9,000 beds.ZLT and Edisur Group
The houses or apartments are occupied throughout the year, as employees work there 365 days a year , with rotating shifts. This way, constant occupancy is guaranteed , something that does not always happen when it comes to the real estate world. In addition, it guarantees rents of up to $1.5 million net per month, in some cases.
Properties are usually built using the modular system : they are made in a factory, in three dimensions, on a production line similar to an automotive industry, which allows for greater speed of execution. “They saw that modular construction had strong advantages over traditional construction; it is difficult to build in Añelo, but these modules make it easier because they are transported there and almost all the work is done in factories,” shares Horacio Parga (h), director of Grupo Edisur, a developer from Córdoba and strategic partner of the Álamos project. In fact, he clarifies that they work 90% in the workshop and the remaining 10% (foundations, service connections, assembly with final finishing and foundations) is done on the land itself .
It is part of a ZLT development that the company started in 2023 and is scheduled to be completed by the end of 2025, which involves a total investment of US$30 million . It has paved streets, sidewalks, green spaces, its own water networks and a sewage treatment plant. “Currently, investors in the first stage earn between $1,500,000 and $1,700,000 net per month,” shares Luis Laorden, director of ZLT.
The Álamos project will build 54 new apartments in the area ZLT and Edisur Group
The project for the area proposes a rental pool model that offers monthly income for investors.ZLT and Edisur Group
The project proposes a rental pool model that offers monthly income for investors. The units in the second phase - whose construction is projected to be completed in six months and will be managed by CITITEK, a business unit of Grupo Edisur - are valued at US$130,000 and offer an annual rent of more than 10%, with an estimated recovery time of seven years for the initial investment . “The building will have a ground floor and first floor, on a surface area of 2,800 m², with 50 m² units, with two bedrooms and two bathrooms, which the developer is responsible for equipping and managing all the services,” shares Gino Zavanella, director of ZLT.
Another project currently under development in the area is Altos Neuquinos. It is the first of three buildings to be built there, which will total 600 apartments . The first of these will have 40 units: 40 m² studio apartments, for a price of US$75,000 and 50 m² two-room apartments, for US$85,000. “The developer will manage the rentals, decorate the place and ensure that it is equipped. In addition, it promises an annual rent of around 10% in dollars ,” says Bagnato.
The project will have three buildings that will have a total of 600 apartments.Toribio Achaval
Next to Route 7, there are six buildings that were built by the Soldati real estate company, in partnership with the developer Base Cuatro. They are currently building three more , in a space of one and a half hectares, for the total of nine that make up Añelo Nuevo. “At this moment we have about 180 active apartments and we have orders from top-level companies that request between 3,000 and 4,000 more beds ,” shares Daniel Batista, commercial advisor for Añelo Nuevo.
In the Añelo area, next to Route 7, there are 6 buildings that Soldati built and he is currently building 3 more.Soldiers
The seventh building will be opened in October and the remaining ones are planned to be finished in the first quarter of 2025. The units are 28 m² studios for a ticket price of US$78,000 , 38 m² two-room apartments for US$105,000 and 57 m² three-room apartments for US$162,000. “The project promises an annual return in dollars of more than 10% , in a complex that has security, where who enters and who leaves is controlled,” says Sebastián Rascovan, commercial director of projects at Soldati.
With an investment of approximately US$15 million, Idero launched a complex of buildings totaling 6,000 m² in Añelo, where they also take care of all the rental arrangements and transfer the net income to the investor's pocket. Espacio Añelo is a project of four buildings; three residential and one for offices and gyms. Three of them have already been built and delivered and the fourth is being built. The latter will have 24 apartments of 57 m², with two bedrooms each. The price of the units in the construction phase starts at US$160,000 . On the other hand, the two-bedroom apartments in the units of the finished buildings are around US$190,000 and US$110,000 for the studio units. They promise an annual rent of 10% in dollars.
Idero has launched a complex of buildings totalling 6,000 m² in AñeloI think
“The buildings are certified as sustainable construction , they are made in a factory and, being modular , they have the advantage that, if in a few years Vaca Muerta stops being profitable, they can be transported and relocated to any other place with exploitation potential ,” explains Lucas Salvatore, president of Idero. He also shares that they have another project in the area, known as Añelo Central, which will have 17 buildings with 24 apartments of 57 m². They are already building the first one, which they estimate will be ready by March of next year.
In the center of Añelo, one block from the municipality, Wenelen Apart will be built, a 120-unit project with an investment of US$8 million. These are units of 42 m² each, some with two bedrooms and others with only one, which do not yet have a sale price, but will be offered for a rent of US$1,300 dollars per month, with an annual rent of 11/12% and a net income for investors of US$1,000. The project will have two stages, the first of 60 units, which are estimated to be ready by September of next year and the second in September 2026.
The Wenelen hotel is located in the Añelo areaDYPSA Group
“We understand that Vaca Muerta is an area where all the conditions are in place for significant development ,” shares Issel Kiperszmid, owner of DYPSA, the developer that will carry out the project, and explains that they also have a hotel that has been operating since before the pandemic and is currently being expanded to include 32 units. In fact, Apart Wenelen clients can use the hotel’s amenities and breakfast. In addition, they are working on a third project in the industrial park: they will build a logistics and service center for SMEs and oil companies.
www.buysellba.com
Source:
August 28, 2024
An area is positioned as ideal for investment, since it has a constant demand throughout the year and that far exceeds the supply.
By Maria Josefina Lanzi
The area where it is convenient to invest because demand far exceeds supply Soldiers
Vaca Muerta is a name that resonates more and more in the ears of Argentines. It is not only the second largest gas reserve and the fourth largest unconventional oil reserve in the world , but also a place where there is an attractive combination for those looking to invest in real estate: it promises tenants all year round and a demand for rental apartments that far exceeds the supply. In addition, it is the same oil companies that take charge of the contracts.
In this town, which generates 55% of the total oil production and 65% of the country's gas, " currently there are approximately 55,000 workers," according to figures from Fernando Banderet, mayor of Añelo. However, he explains that the real estate offer that exists for these workers is not sufficient: he assures that they do not have exact figures, but they know that there are 15,000 workers living and working in the city, and 20,000 vehicles that travel every day to Añelo, from which it is estimated that 40,000 more workers are transported to the basin (which involves construction workers in oil fields, the oil union, truck drivers, security guards, etc.).
This is a town with a different way of life than the conventional one: employees work for 15 days straight and, to rest at the end of each of those days, they generally travel to Neuquén, one of the closest cities, although located 100 km from Añelo, due to the lack of accommodation in that city. “The road they travel is a highway, loaded with trucks, on a journey that usually takes an hour and a quarter or an hour and a half, although it takes up to three during rush hour. To this must be added the costs of overtime that it entails for the company and the wear and tear that this transfer implies,” shares Eduardo Bagnato, director of ventures at Toribio Achával, who markets Altos Neuquinos in Añelo, a project of three buildings that will add 600 apartments.
Añelo is the area where more and more developers are launching real estate projects Soldiers
Vaca Muerta is the second largest gas reserve and the fourth largest unconventional oil reserve in the world
A fact that reveals the importance of the activity is the one shared in the latest report of Argentine Commercial Exchange (ICA), published by Indec: it states that, only in oil, the country exported 60.2% more in the first six months of 2024 than it achieved in the same period of 2023. In fact, the study reveals that it is the sub-sector that grew the most in the last year, after seeds and oilseeds. “Today we have only 8% of the basin exploited and if work begins in the rest of Vaca Muerta, more people will be needed to work there. The recent visit of the President means that there will be a strong commitment to continue developing the activity,” shares the mayor.
Considering the numbers currently generated by the basin, the development of real estate projects is positioned as something urgent. The town of Añelo is one of the closest towns to Vaca Muerta and, in fact, it is growing more and more in real estate developments, since, in the words of Bagnato, it is “ a business in which you do not need to go out looking for tenants .” The wells work 24 hours a day, and the need for workers and a roof to live under is constant. “Last year a consulting firm made a projection of how much the area would grow and estimated that in 2030 Añelo will have 50,000 permanent inhabitants ,” says Banderet.
The mayor of Añelo also reveals that, currently, “7,500 new beds are under construction, which are estimated to be ready during this year and the next, of which 90% already have signed rental contracts.” For their part, they are reforming the urban planning code of Añelo, in which they will require developers who undertake projects in the area to build homes that can then be purchased by workers ; this purchase will be facilitated through a mortgage loan that will be granted by Banco Nación, of which details are not yet known. “We want workers to move there with their families, have a sense of belonging to the place and generate benefits for the community,” says Banderet.
How does the real estate business work in the area?
Rental units in Añelo yield an approximate annual return of 10% in dollars . If compared with Zonaprop's numbers in CABA, the profitability, in some cases, is half of that recorded in Añelo: Lugano, La Boca and Parque Patricios are presented as the best options to search for rent in the city of Buenos Aires, but with a return of 6.4%, 5.6% and 5.3%, respectively.The real estate business in Vaca Muerta is different from that of a traditional rental market. In this case, the tenant is actually the company, which rents these units so that its workers can work in the extraction of oil . The business model is a turnkey service, where the developers manage the projects and are usually in charge of managing the contracts, equipping the houses and providing the administration, maintenance and security services (including the service of washing bed linen and cleaning the place).
The real estate offer that exists in the area for these workers only reaches 9,000 beds.ZLT and Edisur Group
The houses or apartments are occupied throughout the year, as employees work there 365 days a year , with rotating shifts. This way, constant occupancy is guaranteed , something that does not always happen when it comes to the real estate world. In addition, it guarantees rents of up to $1.5 million net per month, in some cases.
Properties are usually built using the modular system : they are made in a factory, in three dimensions, on a production line similar to an automotive industry, which allows for greater speed of execution. “They saw that modular construction had strong advantages over traditional construction; it is difficult to build in Añelo, but these modules make it easier because they are transported there and almost all the work is done in factories,” shares Horacio Parga (h), director of Grupo Edisur, a developer from Córdoba and strategic partner of the Álamos project. In fact, he clarifies that they work 90% in the workshop and the remaining 10% (foundations, service connections, assembly with final finishing and foundations) is done on the land itself .
What projects are being developed in the area?
One of the projects currently being developed in Añelo is Álamos. This is a multi-use project that has already completed its first phase of 60 houses and has currently launched the second phase, in which they are looking to sell 54 apartments. The last phase will have new apartments and will add a hotel, offices and commercial premises.It is part of a ZLT development that the company started in 2023 and is scheduled to be completed by the end of 2025, which involves a total investment of US$30 million . It has paved streets, sidewalks, green spaces, its own water networks and a sewage treatment plant. “Currently, investors in the first stage earn between $1,500,000 and $1,700,000 net per month,” shares Luis Laorden, director of ZLT.
The Álamos project will build 54 new apartments in the area ZLT and Edisur Group
The project for the area proposes a rental pool model that offers monthly income for investors.ZLT and Edisur Group
The project proposes a rental pool model that offers monthly income for investors. The units in the second phase - whose construction is projected to be completed in six months and will be managed by CITITEK, a business unit of Grupo Edisur - are valued at US$130,000 and offer an annual rent of more than 10%, with an estimated recovery time of seven years for the initial investment . “The building will have a ground floor and first floor, on a surface area of 2,800 m², with 50 m² units, with two bedrooms and two bathrooms, which the developer is responsible for equipping and managing all the services,” shares Gino Zavanella, director of ZLT.
Another project currently under development in the area is Altos Neuquinos. It is the first of three buildings to be built there, which will total 600 apartments . The first of these will have 40 units: 40 m² studio apartments, for a price of US$75,000 and 50 m² two-room apartments, for US$85,000. “The developer will manage the rentals, decorate the place and ensure that it is equipped. In addition, it promises an annual rent of around 10% in dollars ,” says Bagnato.
The project will have three buildings that will have a total of 600 apartments.Toribio Achaval
Next to Route 7, there are six buildings that were built by the Soldati real estate company, in partnership with the developer Base Cuatro. They are currently building three more , in a space of one and a half hectares, for the total of nine that make up Añelo Nuevo. “At this moment we have about 180 active apartments and we have orders from top-level companies that request between 3,000 and 4,000 more beds ,” shares Daniel Batista, commercial advisor for Añelo Nuevo.
In the Añelo area, next to Route 7, there are 6 buildings that Soldati built and he is currently building 3 more.Soldiers
The seventh building will be opened in October and the remaining ones are planned to be finished in the first quarter of 2025. The units are 28 m² studios for a ticket price of US$78,000 , 38 m² two-room apartments for US$105,000 and 57 m² three-room apartments for US$162,000. “The project promises an annual return in dollars of more than 10% , in a complex that has security, where who enters and who leaves is controlled,” says Sebastián Rascovan, commercial director of projects at Soldati.
With an investment of approximately US$15 million, Idero launched a complex of buildings totaling 6,000 m² in Añelo, where they also take care of all the rental arrangements and transfer the net income to the investor's pocket. Espacio Añelo is a project of four buildings; three residential and one for offices and gyms. Three of them have already been built and delivered and the fourth is being built. The latter will have 24 apartments of 57 m², with two bedrooms each. The price of the units in the construction phase starts at US$160,000 . On the other hand, the two-bedroom apartments in the units of the finished buildings are around US$190,000 and US$110,000 for the studio units. They promise an annual rent of 10% in dollars.
Idero has launched a complex of buildings totalling 6,000 m² in AñeloI think
“The buildings are certified as sustainable construction , they are made in a factory and, being modular , they have the advantage that, if in a few years Vaca Muerta stops being profitable, they can be transported and relocated to any other place with exploitation potential ,” explains Lucas Salvatore, president of Idero. He also shares that they have another project in the area, known as Añelo Central, which will have 17 buildings with 24 apartments of 57 m². They are already building the first one, which they estimate will be ready by March of next year.
In the center of Añelo, one block from the municipality, Wenelen Apart will be built, a 120-unit project with an investment of US$8 million. These are units of 42 m² each, some with two bedrooms and others with only one, which do not yet have a sale price, but will be offered for a rent of US$1,300 dollars per month, with an annual rent of 11/12% and a net income for investors of US$1,000. The project will have two stages, the first of 60 units, which are estimated to be ready by September of next year and the second in September 2026.
The Wenelen hotel is located in the Añelo areaDYPSA Group
“We understand that Vaca Muerta is an area where all the conditions are in place for significant development ,” shares Issel Kiperszmid, owner of DYPSA, the developer that will carry out the project, and explains that they also have a hotel that has been operating since before the pandemic and is currently being expanded to include 32 units. In fact, Apart Wenelen clients can use the hotel’s amenities and breakfast. In addition, they are working on a third project in the industrial park: they will build a logistics and service center for SMEs and oil companies.
www.buysellba.com
