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What impact will the new mortgage loans have on the property rental market? - Infobae
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Qué impacto tendrán los nuevos créditos hipotecarios en el mercado del alquiler de propiedades
Cuáles serán las consecuencias del regreso de los planes para comprar, ampliar o refaccionar viviendas y cómo se comportarán alquileres
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What will be the consequences of the return of plans to buy, expand or renovate homes and how rentals will behave?
By José Luis Cieri
The effects of the new mortgage loans could be reflected in the rental market in two or three months. These credits will make potential tenants reconsider renting and choose to buy a property (Illustrative image Infobae)
The return of UVA mortgage loans could have a significant effect on the rental market, generating a slowdown in values before the end of the year. Plans to buy or expand promise to ease the path to homeownership for more people, which could change the current dynamics between renters and homeowners.
Although the specific impact of mortgage loans on the rental market varies depending on several factors, it is expected that their availability will reduce pressure on the rental market whose supply expanded strongly ( in some Buenos Aires neighborhoods more than 250% ) after the DNU of the Government that repealed the Rental Law at the end of the year.
As more people choose to purchase their own home, demand for locations could decrease, allowing for stability or even a slowdown in rental values in the short term that could drop up to 25% for new contracts before the end of this year. anus.
“The effects of the new mortgage loans could be reflected in the rental market in about two to three months. The credit is going to affect the market very positively, but those who take the risk have to have between 20% and 30% of the value of the property to buy and obtain bank financing,” said Diego Migliorisi , of Migliorisi Propiedades.
In the banks that offer the plans, such as Hipotecario, Nación y Ciudad and many of the largest private banks, inquiries increase week after week.
Panorama
The announcement of the launch of lines generated an important movement that has an impact on all areas of Real Estate.Verónica Pagola , CEO of Century 21 Argentina, said that “this sector, relegated for almost four years due to excessive regulation, now finds a scenario more likely to expand. The increase in the number of inquiries and recent purchase and sale operations is a clear indication of this upward trend that has been observed since the end of the second half of 2023.
Deeds in the city of Buenos Aires grew 32% year-on-year .
The reintroduction of mortgage loans is a long-awaited measure that will positively impact the market. Although there is optimism, the full effects may take months to manifest, influenced by supply, economic conditions and user preferences (Freepik)
An increase in the supply of properties could lead to rental values slowly adjusting to market reality.
“Although it is difficult to predict the exact moment in which we will see these impacts, it is reasonable to expect that the stock of properties that previously did not find a buyer will see their closure reflected more quickly, attracting new audiences that previously opted only to rent or seek capital gains through sale.” Pagola said.
From the investor's point of view, those who had given up on acquiring a rental property now see advantages in the deregulation of rents and the possibility of accessing credit without significantly affecting their savings.
Pagola pointed out that, for those who need a home, access to credit and favorable economic parameters make the option of buying more attractive. “The brick culture and the insecurity in other investments reinforce this decision,” he said.
Equilibrium
Mariana Stange , of Mariana Stange Real Estate, pointed out that this measure could lead to a moderation in prices or an improvement in rental conditions, due to the intensification of competition between owners due to a potential decrease in rental demand.A new balance between supply and demand is anticipated from the real estate market, making it crucial to closely monitor how these effects will evolve in the coming months.
Initially, greater activity would be noted in the home buying and selling market as buyers take advantage of new financing opportunities to access properties whose price has dropped almost 50% since 2018. However, this situation is beginning to reverse , since prices stopped falling and appreciated 4% on average so far in 2024.
