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Without the Rental Law, the supply of properties in CABA grew almost 200%: stable prices and more negotiation-Infobae
Source:
www.infobae.com
December 02, 2024
This was confirmed by a private report which also found that the number of apartments for rent grew by 5.39% in the last month, and that six neighbourhoods account for 60% of the offers. Buying and selling are taking off
By Jose Luis Cieri
A report detailed that the offer expanded to historic levels and there is more negotiation between owners and tenants to agree on a new contract (Illustrative Image Infobae)
The supply of apartments for rent in the city of Buenos Aires increased by 5.39% during the last month and by 189.77% since the DNU repealed the Rental Law , with a volume considered stable and in line with the current market, according to a private report. Of the total supply, 96.01% corresponds to apartments, which shows a wide availability for those looking to rent in the capital.
The study confirmed that the distribution of rental offers is concentrated in six neighborhoods: Palermo, Belgrano, Recoleta, Barrio Norte, Caballito and Puerto Madero . These neighborhoods account for 59.75% of the total number of publications, with Palermo being the leader, with 24.53% of the total offer and a monthly increase of 1.51%.
The higher concentration in these neighbourhoods reflects a location-specific phenomenon, where demand remains aligned with traditional areas with a high density of services.
Miguel Chej Muse , coordinator of the Statistical Market Observatory of the Buenos Aires Real Estate Association, explained to Infobae that the increase of almost 190% in the supply of residential rentals since the entry into force of DNU 70/2023 is due to the contractual freedom allowed by said decree. “It allows the term of the contract to be freely agreed upon, which is generally 24 months, and the value to be adjusted more than once a year, something that was not possible before in a context of high inflation. This change generated a significant return of supply to the market.”
In terms of value, rental prices for housing are on the decline in real terms from January to October 2024, according to the Observatory. On average, the decline was 38.6%, which implies that the increase in prices is below inflation, with a fall in the real value of rents.
Nominal reductions are already being observed in some contracts, and it is increasingly common for landlords to accept counteroffers from tenants , indicating an adjustment towards greater contractual flexibility.
The segment recognises that this negotiation facilitates an agreement between both parties and achieves an equitable pact.
Source: Statistical Observatory of the Real Estate Market of the Buenos Aires Real Estate Association
The average gross annual yield on rental housing is 5.62% for contracts started in January 2024 , taking as a reference two-room apartments in average areas and the MEP dollar. This percentage reflects a recovery, largely attributed to the drop in the exchange rate, and highlights the real estate sector as a store of value.
Chej Muse explained: “The increase in gross rental profitability for housing, which reached 5.62% per year on average, is mainly due to the drop in the exchange rate, which implies a revaluation of the peso. Another relevant factor is that the value adjustment stopped being annual without the Rental Law and is now carried out, in most cases, on a quarterly basis, which favored the increase in profitability.”
The situation is also causing investors to return to buy homes for rent.
The record 5,987 deeds executed in October boosted the real estate market. In the last six months, the monthly average is 5,034 deeds, which indicates that the market is on the right track. This dynamism is due to the boost in mortgage loans and money laundering.
Prices are expected to rise in the coming months, which Chej Muse said “represents a good time to make a purchase decision, as more square meters can be acquired now than in the future,” he said.
The registered surface area for new construction during this period reached 174,383 square metres, with an increase of 55.8% compared to the previous month.
“This significant increase in acreage suggests that approved projects are of a greater scope and scale, which could impact future property supply,” Chej Muse added.
The Palermo neighborhood led both in the number of permits granted, with 8 permits representing 10.96% of the total, and in registered surface area, with 36,283 m2, equivalent to 20.81% of the total.
www.buysellba.com
Source:
Sin Ley de Alquileres, la oferta de propiedades en CABA creció casi 200%: precios estables y más negociación
Así lo confirmó un informe privado que también detectó que la oferta de departamentos en alquiler creció 5,39% en el último mes, y que seis barrios concentran el 60% de las propuestas. La compra venta en un momento de despegue
www.infobae.com
December 02, 2024
This was confirmed by a private report which also found that the number of apartments for rent grew by 5.39% in the last month, and that six neighbourhoods account for 60% of the offers. Buying and selling are taking off
By Jose Luis Cieri
A report detailed that the offer expanded to historic levels and there is more negotiation between owners and tenants to agree on a new contract (Illustrative Image Infobae)
The supply of apartments for rent in the city of Buenos Aires increased by 5.39% during the last month and by 189.77% since the DNU repealed the Rental Law , with a volume considered stable and in line with the current market, according to a private report. Of the total supply, 96.01% corresponds to apartments, which shows a wide availability for those looking to rent in the capital.
The study confirmed that the distribution of rental offers is concentrated in six neighborhoods: Palermo, Belgrano, Recoleta, Barrio Norte, Caballito and Puerto Madero . These neighborhoods account for 59.75% of the total number of publications, with Palermo being the leader, with 24.53% of the total offer and a monthly increase of 1.51%.
The higher concentration in these neighbourhoods reflects a location-specific phenomenon, where demand remains aligned with traditional areas with a high density of services.
Miguel Chej Muse , coordinator of the Statistical Market Observatory of the Buenos Aires Real Estate Association, explained to Infobae that the increase of almost 190% in the supply of residential rentals since the entry into force of DNU 70/2023 is due to the contractual freedom allowed by said decree. “It allows the term of the contract to be freely agreed upon, which is generally 24 months, and the value to be adjusted more than once a year, something that was not possible before in a context of high inflation. This change generated a significant return of supply to the market.”
In terms of value, rental prices for housing are on the decline in real terms from January to October 2024, according to the Observatory. On average, the decline was 38.6%, which implies that the increase in prices is below inflation, with a fall in the real value of rents.
Nominal reductions are already being observed in some contracts, and it is increasingly common for landlords to accept counteroffers from tenants , indicating an adjustment towards greater contractual flexibility.
The segment recognises that this negotiation facilitates an agreement between both parties and achieves an equitable pact.
Favorites
Rental contracts in pesos and for 24 months are preferred by both tenants and owners . In most cases, a quarterly adjustment is agreed upon based on the Consumer Price Index (CPI) published by Indec, or the Index for Lease Contracts (ICL) of the Central Bank.
Source: Statistical Observatory of the Real Estate Market of the Buenos Aires Real Estate Association
The average gross annual yield on rental housing is 5.62% for contracts started in January 2024 , taking as a reference two-room apartments in average areas and the MEP dollar. This percentage reflects a recovery, largely attributed to the drop in the exchange rate, and highlights the real estate sector as a store of value.
Chej Muse explained: “The increase in gross rental profitability for housing, which reached 5.62% per year on average, is mainly due to the drop in the exchange rate, which implies a revaluation of the peso. Another relevant factor is that the value adjustment stopped being annual without the Rental Law and is now carried out, in most cases, on a quarterly basis, which favored the increase in profitability.”
The situation is also causing investors to return to buy homes for rent.
Properties and credits
According to the analysis, apartments with sales values below USD 130,000 lead the purchase and sale operations in CABA.The record 5,987 deeds executed in October boosted the real estate market. In the last six months, the monthly average is 5,034 deeds, which indicates that the market is on the right track. This dynamism is due to the boost in mortgage loans and money laundering.
Prices are expected to rise in the coming months, which Chej Muse said “represents a good time to make a purchase decision, as more square meters can be acquired now than in the future,” he said.
Building permits
In October, 73 permits for new construction were granted, which represents an increase of 14.06% compared to the previous month. This figure shows an upturn in construction activity, even with higher costs than a year ago .
The registered surface area for new construction during this period reached 174,383 square metres, with an increase of 55.8% compared to the previous month.
“This significant increase in acreage suggests that approved projects are of a greater scope and scale, which could impact future property supply,” Chej Muse added.
The Palermo neighborhood led both in the number of permits granted, with 8 permits representing 10.96% of the total, and in registered surface area, with 36,283 m2, equivalent to 20.81% of the total.
www.buysellba.com
