BuySellBA
Administrator
Prices of 3-room apartments increased 308% annually: The overview by neighborhood - Infobae
Source:
February 5, 2024
After the repeal of the Rental Law by the recent DNU, values in the city of Buenos Aires continue to rise. A significant increase is observed in the supply of housing demanded by typical families in areas previously lacking options
By José Luis Cieri
Three-room apartments are the most sought after by families with one or two children
Although the Government, through DNU 70, repealed the Rental Law, prices for renting three-room apartments in the city of Buenos Aires registered a significant increase of 308.1% in interannual terms.
Since the issuance of the DNU, the supply of units grew 62%, as many homeowners reintegrated into the rental market. Today, more than 9,000 apartments for rent are advertised on some portals, including three-bedroom options in neighborhoods such as Mataderos or Parque Chacabuco, where until two months ago the offer was zero.
Leandro Molina, country manager of Grupo QuintoAndar for Argentina and Peru, told Infobae that in Zonaprop there was a notable increase in supply. “This increase entails a validation of demand and a balance in prices. However, persistent inflation contributes to values continuing to rise strongly,” he stressed.
Three-room apartments are basically sought after by middle-class families, especially those with one or two children, who are looking for homes with two bedrooms. According to sector experts, the post-DNU real estate supply maintains an upward trend that points to the normalization of the rental market.
Patricia Contestabile , of Patricia Contestabile Real Estate Businesses, highlighted that the flexibility offered to the parties when entering into contracts “motivated owners to explore the traditional rental market, despite the persistence of properties intended for temporary rental.”
Source: Zonaprop
During January the increase in rental prices was driven by the inflationary process. Prices are expected to stabilize, especially if property supply continues to increase.
Palermo maintains its position as the most expensive neighborhood to rent a three-room apartment, followed by Belgrano, where values start at $600,000, depending on the characteristics of the building and the costs of expenses.
“To avoid variation due to indices, many owners opt for contracts in dollars or their equivalent in pesos, while tenants, whose income is mostly in pesos, prefer to commit to an inflation update index in the local currency,” said Contestabile.
Higher increases
In CABA, the neighborhoods that have increased their prices the most year-on-year, exceeding 300% in all cases, are Villa Devoto, Belgrano, Villa Urquiza and Núñez.“At the same time, these neighborhoods are currently among the most in demand in the rental market. Although three-room apartments are highly sought after, single-room apartments lead the searches,” Molina clarified.
Demand
Three-room apartments are not only sought after by families, but also by young couples. This demographic group, basically those under 40 years of age, stands out for its well-paid jobs that exceed the average income. “The need for additional space is attributed to carrying out professional work from home, converting the third room into an office and reflecting the growing trend of working remotely,” explained Vanesa Ibarra , from Salguero Propiedades.In these homes, the transformation of an environment into an office is due to the new work dynamics. Furthermore, the preference for homes with amenities highlights the interest of this demographic segment in adding a component of comfort and quality of life.
The three environments are also sought after by couples without children who require another environment to telework from home (Illustrative image Infobae)
The values of three-room apartments vary significantly depending on age and location. In areas such as Almagro, Villa Crespo, Boedo and Parque Centenario, the oldest apartments range between $350,000, $400,000 and $450,000 per month, while the most modern ones, equipped with a balcony and amenities, can reach $600,000 per month.
Ibarra added: “If you want to add a garage, the additional cost varies between $25,000 and $30,000, depending on whether it is covered, uncovered, on the ground floor or basement. Regarding expenses, the average figure is around $100,000 per month.
In the case of renting PHs, in their modern version, with a terrace, the values can reach up to $800,000 per month. “These types of properties have the advantage of paying lower expenses, in some cases between $30,000 and $40,000, and in some cases they are exempt.”
Regarding new contracts, real estate agencies suggest quarterly adjustments, so that they are aligned with the evolution of tenants' salaries. Agreements based on the Consumer Price Index (CPI) and the Lease Contract Index (ICL) predominate. In any case, the adjustments, although there is still no information on their impact, are seen as a potential difficulty for the tenant.
Source: Zonaprop
“The understanding on the part of several owners is evident; some requested semi-annual adjustments based on the LCI, while others are open to dialogue should the rent increase significantly without a corresponding increase in the tenant's income. The importance of both parties being comfortable in facing this situation is underlined,” Ibarra commented.
Values
According to Zonaprop, these are the average prices and the areas where you can find three-room apartments (that exceed 70 square meters in area):Palermo: $807,000.
Belgrano: $750,000.
Nuñez: $743,000.
Villa Urquiza: $688,000.
Recoleta: $673,000.
Retiro: $670,000.
Colegiales: $654,000.
Villa Devoto: $622,000.
Caballito: $594,000.
Almagro: $588,000.
Villa Crespo: $540,000.
Chacabuco Park: $503,000.
Flores: $491,000.
San Nicolás: $488,000.
Balvanera: $477,000.
Mataderos: $449,000.
www.buysellba.com
