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Without a Rental Law: Which are the most sought-after apartments in CABA and how much are they worth? - Infobae
Source:
www.infobae.com
September 26, 2024
A private report detected this dynamic in the city, identifying the types of apartments that predominate and the areas with the greatest supply currently.
By Jose Luis Cieri
A studio apartment in the Palermo neighborhood
A year ago, the rental market in the city of Buenos Aires was almost non-existent; it was difficult to find apartments, and in some neighborhoods the options were zero. However, since the DNU that repealed the Rental Law came into effect, the dynamics changed and available apartments began to return in different areas.
A private analysis found that the supply of one- and one-bedroom properties in CABA experienced unprecedented growth since the beginning of the year. According to recent data, the year-on-year increases in the availability of these types of apartments were 320% and 227%, respectively.
"This is due to the reluctance of some owners to rent under the previous regulations and the decision of others to rent out properties that were initially for sale or intended for temporary rentals," Daniel Bryn , partner at Zipcode and who runs Monitor Inmobiliario, told Infobae.
The most popular units are the 1 and 2-bedroom units. These apartments, depending on the location and the amenities they offer, usually cost between $400,000 and $700,000 per month.
Francisco Altgelt , from Altgelt Negocios Inmobiliarios, commented on the matter: “Since the Law was repealed, we have seen how the supply has recovered and this has benefited both owners and tenants. The 1 and 2-bedroom apartments are the most sought after, as they meet the needs of a young public and people from the interior who come to the city.”
With more housing available, there is also more room for negotiation between the parties involved in the deal. Tenants are often able to reduce the rent before closing if they are financially sound, have two guarantors or private surety bonds, and are debt-free.
Source: Zipcode and Real Estate Monitor
“Prices vary greatly depending on location and type of expenses, which largely determines the choice of property,” Altgelt added.
Bryn said the decline is due in part to a shortage of large-unit construction and “the difficulty of renting apartments with more than two bedrooms, which tend to have high prices and fewer options available on the market.”
A four-bedroom apartment in CABA costs at least $800,000 per month , with expenses that range around $250,000, representing a considerable cost for tenants.
The six neighborhoods with the largest number of available units are Palermo, Belgrano, Recoleta, Barrio Norte, Caballito and Puerto Madero, which account for 60.92% of the total supply. Palermo stood out as the one with the largest number of rental units, registering a 0.94% increase in supply during the last month.
With the increase in supply, tenants now have many more alternatives to choose from, which has generated a change in the market. What used to be rented in a matter of days can now take months to complete. This increase in supply has also impacted prices, which have been significantly adjusted.
Dollar deals, which used to be more common, are now only seen in premium properties
“The fact that there are more options on the market has created challenges for landlords. Today, rental contracts are mostly closed in pesos, with quarterly updates based on the Consumer Price Index (CPI), allowing for greater control for both parties. This has forced landlords to be more flexible with conditions and prices, as tenants have more negotiating power than before,” Altgelt explained.
“This increase in smaller apartments is not considered significant in the overall context of the market,” Bryn added.
An interesting fact is the 4.93% increase in the supply of properties with 5 or more rooms between August and September, despite the fact that these tend to have a lower demand compared to smaller properties.
“This phenomenon could be related to the search for alternatives by owners who do not find profitability in other types of rentals,” Bryn added.
Studio apartments: $340,000 (190% year-on-year increase).
1-bedroom apartments: $450,000 (184.25% year-on-year increase).
2-bedroom apartments: $580,000 (175% year-on-year increase).
3-bedroom apartments: $700,000 (172% year-on-year increase).
4-bedroom apartments: $900,000 (169% year-on-year increase).
www.buyellba.com
Source:
Sin Ley de Alquileres: cuáles son los departamentos que más se buscan en CABA y cuánto valen
Un informe privado detectó esta dinámica en la ciudad, identificando los tipos de departamentos que predominan y las zonas con mayor oferta actualmente
www.infobae.com
September 26, 2024
A private report detected this dynamic in the city, identifying the types of apartments that predominate and the areas with the greatest supply currently.
By Jose Luis Cieri
A studio apartment in the Palermo neighborhood
A year ago, the rental market in the city of Buenos Aires was almost non-existent; it was difficult to find apartments, and in some neighborhoods the options were zero. However, since the DNU that repealed the Rental Law came into effect, the dynamics changed and available apartments began to return in different areas.
A private analysis found that the supply of one- and one-bedroom properties in CABA experienced unprecedented growth since the beginning of the year. According to recent data, the year-on-year increases in the availability of these types of apartments were 320% and 227%, respectively.
"This is due to the reluctance of some owners to rent under the previous regulations and the decision of others to rent out properties that were initially for sale or intended for temporary rentals," Daniel Bryn , partner at Zipcode and who runs Monitor Inmobiliario, told Infobae.
The most popular units are the 1 and 2-bedroom units. These apartments, depending on the location and the amenities they offer, usually cost between $400,000 and $700,000 per month.
Francisco Altgelt , from Altgelt Negocios Inmobiliarios, commented on the matter: “Since the Law was repealed, we have seen how the supply has recovered and this has benefited both owners and tenants. The 1 and 2-bedroom apartments are the most sought after, as they meet the needs of a young public and people from the interior who come to the city.”
With more housing available, there is also more room for negotiation between the parties involved in the deal. Tenants are often able to reduce the rent before closing if they are financially sound, have two guarantors or private surety bonds, and are debt-free.
Source: Zipcode and Real Estate Monitor
“Prices vary greatly depending on location and type of expenses, which largely determines the choice of property,” Altgelt added.
Other alternatives
According to Zipcode's analysis, the year-on-year supply of two-bedroom apartments increased by 106.27%, while that of three-bedroom apartments increased by 12.20%; in contrast, the supply of units with five or more rooms decreased by 14.34% in 12 months.Bryn said the decline is due in part to a shortage of large-unit construction and “the difficulty of renting apartments with more than two bedrooms, which tend to have high prices and fewer options available on the market.”
A four-bedroom apartment in CABA costs at least $800,000 per month , with expenses that range around $250,000, representing a considerable cost for tenants.
Dynamics and areas
Between units in pesos and dollars, there are an estimated 18,000 properties in different neighborhoods of the city. According to the Buenos Aires Real Estate Association, 95.72% of the rental offer in CABA corresponds to apartments.The six neighborhoods with the largest number of available units are Palermo, Belgrano, Recoleta, Barrio Norte, Caballito and Puerto Madero, which account for 60.92% of the total supply. Palermo stood out as the one with the largest number of rental units, registering a 0.94% increase in supply during the last month.
With the increase in supply, tenants now have many more alternatives to choose from, which has generated a change in the market. What used to be rented in a matter of days can now take months to complete. This increase in supply has also impacted prices, which have been significantly adjusted.
Dollar deals, which used to be more common, are now only seen in premium properties
“The fact that there are more options on the market has created challenges for landlords. Today, rental contracts are mostly closed in pesos, with quarterly updates based on the Consumer Price Index (CPI), allowing for greater control for both parties. This has forced landlords to be more flexible with conditions and prices, as tenants have more negotiating power than before,” Altgelt explained.
Inter-monthly offer
As for the inter-monthly variation, a slight increase of 2.39% was observed in the supply of studio properties, while the availability of 1, 2 and 3-bedroom properties decreased.“This increase in smaller apartments is not considered significant in the overall context of the market,” Bryn added.
An interesting fact is the 4.93% increase in the supply of properties with 5 or more rooms between August and September, despite the fact that these tend to have a lower demand compared to smaller properties.
“This phenomenon could be related to the search for alternatives by owners who do not find profitability in other types of rentals,” Bryn added.
Values
Below are the average rental prices in pesos in CABA according to several specialized portals:Studio apartments: $340,000 (190% year-on-year increase).
1-bedroom apartments: $450,000 (184.25% year-on-year increase).
2-bedroom apartments: $580,000 (175% year-on-year increase).
3-bedroom apartments: $700,000 (172% year-on-year increase).
4-bedroom apartments: $900,000 (169% year-on-year increase).
www.buyellba.com
