BuySellBA
Administrator
Prices to rent 1 & 2 bedrooms in CABA skyrocketed 65% in the Qtr. - Infobae
Source:
www.infobae.com
September 21, 2023
By: José Luis Cieri
The shortage of supply is worsening and price increases have no plans to stop. Report specified how much the apartments cost in the different Buenos Aires neighborhoods
A couple looks at the price to rent a home and does the math. Everything is complex within the real estate market.
Accessing the rental of a home in the city of Buenos Aires has become increasingly complex. A private analysis indicated that prices increased by 59.71% in 1 bedroom apartments and 72.94% in 2 bedroom apartments, only in the last quarter, setting a new record.
Additionally, the availability of properties continues to decrease in the different Buenos Aires neighborhoods. It is estimated that supply has fallen by 63% in the last two years.
The Rental Law, currently under review in the National Senate, has generated a complicated scenario for the real estate market. Since rents are the only good or service in the Argentine economy that has been frozen for a year, it was foreseeable that owners would adjust prices to compensate for projected inflation.
This context has led not only to an unprecedented decrease in supply, but also to record year-on-year increases and a high level of informality in the sector. The increases skyrocketed in the last two quarters following high inflation and the doubts generated by the non-modification of current regulations, experts say.
1 bedroom apartments experienced a significant increase in prices during the last quarter, reaching 59.71%; In year-on-year terms, the increase reaches 204.5 percent. 3-bedroom properties, generally sought after by families with one or two children, registered an increase of 72.94% in the last quarter, taking the year-on-year increase to a notable 250.21%, as indicated by a Real Estate Report report.
Germán Gómez Picasso , from Reporte Inmobiliario, informed Infobae that “particularly in the last two quarters, the increases are notable. This is likely related to accelerating inflation; “Landlords are seeking to adjust current rental prices in anticipation of future inflation that is expected to be higher than last year.”
Source: Real Estate Report
Specialists in the sector also indicate that, in addition to criticism of the current law, owners are forced to apply increases that exceed the Rental Contract Index, which registered an increase of 113% in September, due to maintenance costs. of the properties.
Claudio Palitto , from SJ Palitto Inmobiliaria, added to Infobae that “with high inflation levels, maintaining the facilities becomes complicated. “A single month of rent almost does not cover the costs of replacing and installing elements such as hot water tanks or heaters.”
“1 and 2 bedroom apartments have seen an increase in rental prices due to multiple factors. Among them, changes in the residential preferences of the population. Many families and couples opt for smaller spaces for various reasons, such as coexistence, location and costs. In addition, the shortage of larger homes has driven the demand for smaller units,” Cintia Azpiazu , from Gustavo De Simone Soluciones Inmobiliarias, explained to Infobae.
After the PASO, extensions increased in contracts that expired in these weeks and an apartment that is priced is usually rented in just 24 hours.
Source: Real Estate Report
Palitto noted that “these properties are being rented gradually with the expectation of periodic adjustments every six months. This occurs especially since the reform of the Rental Law received half a sanction in the Chamber of Deputies. In the Senate, it seems that the position of the ruling party will prevail, which rejects this option and maintains three-year contracts.”
Regarding prices, it has been observed that 3-room apartments experienced greater increases than 2-room apartments, especially in the last two quarters.
“This could be because in CABA there are only 77 3-room units available for traditional rental, compared to 226 2-room units,” added Germán Gómez Picasso.
In the Las Cañitas neighborhood, prices for 1 bedroom apartments average $244,000, while in Recoleta, 2 bedroom apartments reach $385,000 per month (both areas lead prices).
Gómez Picasso clarified that “in areas with tourist, educational or health interest, the supply is even scarcer due to the demand generated by internal and external tourism. With so few properties on the market, owners set high prices, and remarkably, there are always interested parties willing to accept those conditions.”
Source: Real Estate Report
When it comes to rental contract extensions, the situation may vary depending on the specific agreement between the landlord and the tenant.
“Certain cases allow extensions for specified periods, such as an additional year, while in others, agreements may be more flexible. The current situation could be impacting the ability of tenants to meet rent payments, which in turn could lead to contract renegotiations or extension agreements,” Azpiazu concluded.
www.buysellba.com
Source:
Los precios para alquilar 2 y 3 ambientes en CABA se dispararon un 65% en el último trimestre
Se agrava la escasez de oferta y los aumentos de precios no tienen miras de frenarse. Informe precisó cuánto salen los departamentos en los distintos barrios porteños
www.infobae.com
September 21, 2023
By: José Luis Cieri
The shortage of supply is worsening and price increases have no plans to stop. Report specified how much the apartments cost in the different Buenos Aires neighborhoods
A couple looks at the price to rent a home and does the math. Everything is complex within the real estate market.
Accessing the rental of a home in the city of Buenos Aires has become increasingly complex. A private analysis indicated that prices increased by 59.71% in 1 bedroom apartments and 72.94% in 2 bedroom apartments, only in the last quarter, setting a new record.
Additionally, the availability of properties continues to decrease in the different Buenos Aires neighborhoods. It is estimated that supply has fallen by 63% in the last two years.
The Rental Law, currently under review in the National Senate, has generated a complicated scenario for the real estate market. Since rents are the only good or service in the Argentine economy that has been frozen for a year, it was foreseeable that owners would adjust prices to compensate for projected inflation.
This context has led not only to an unprecedented decrease in supply, but also to record year-on-year increases and a high level of informality in the sector. The increases skyrocketed in the last two quarters following high inflation and the doubts generated by the non-modification of current regulations, experts say.
1 bedroom apartments experienced a significant increase in prices during the last quarter, reaching 59.71%; In year-on-year terms, the increase reaches 204.5 percent. 3-bedroom properties, generally sought after by families with one or two children, registered an increase of 72.94% in the last quarter, taking the year-on-year increase to a notable 250.21%, as indicated by a Real Estate Report report.
Germán Gómez Picasso , from Reporte Inmobiliario, informed Infobae that “particularly in the last two quarters, the increases are notable. This is likely related to accelerating inflation; “Landlords are seeking to adjust current rental prices in anticipation of future inflation that is expected to be higher than last year.”
Source: Real Estate Report
Specialists in the sector also indicate that, in addition to criticism of the current law, owners are forced to apply increases that exceed the Rental Contract Index, which registered an increase of 113% in September, due to maintenance costs. of the properties.
Claudio Palitto , from SJ Palitto Inmobiliaria, added to Infobae that “with high inflation levels, maintaining the facilities becomes complicated. “A single month of rent almost does not cover the costs of replacing and installing elements such as hot water tanks or heaters.”
Demand and what is happening
Young people in search of independence are the main demanders of studio and 1 bedroom properties, a requirement that is growing due to the lack of supply in the market.“1 and 2 bedroom apartments have seen an increase in rental prices due to multiple factors. Among them, changes in the residential preferences of the population. Many families and couples opt for smaller spaces for various reasons, such as coexistence, location and costs. In addition, the shortage of larger homes has driven the demand for smaller units,” Cintia Azpiazu , from Gustavo De Simone Soluciones Inmobiliarias, explained to Infobae.
After the PASO, extensions increased in contracts that expired in these weeks and an apartment that is priced is usually rented in just 24 hours.
Source: Real Estate Report
Palitto noted that “these properties are being rented gradually with the expectation of periodic adjustments every six months. This occurs especially since the reform of the Rental Law received half a sanction in the Chamber of Deputies. In the Senate, it seems that the position of the ruling party will prevail, which rejects this option and maintains three-year contracts.”
Regarding prices, it has been observed that 3-room apartments experienced greater increases than 2-room apartments, especially in the last two quarters.
“This could be because in CABA there are only 77 3-room units available for traditional rental, compared to 226 2-room units,” added Germán Gómez Picasso.
In the Las Cañitas neighborhood, prices for 1 bedroom apartments average $244,000, while in Recoleta, 2 bedroom apartments reach $385,000 per month (both areas lead prices).
Gómez Picasso clarified that “in areas with tourist, educational or health interest, the supply is even scarcer due to the demand generated by internal and external tourism. With so few properties on the market, owners set high prices, and remarkably, there are always interested parties willing to accept those conditions.”
Source: Real Estate Report
When it comes to rental contract extensions, the situation may vary depending on the specific agreement between the landlord and the tenant.
“Certain cases allow extensions for specified periods, such as an additional year, while in others, agreements may be more flexible. The current situation could be impacting the ability of tenants to meet rent payments, which in turn could lead to contract renegotiations or extension agreements,” Azpiazu concluded.
www.buysellba.com
