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Rentals: Since the repeal of the law, the supply of apartments in CABA jumped more than 300% - Infobae
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Alquileres: desde la derogación de la ley, la oferta de departamentos en CABA saltó más de 300%
A pesar del rechazo que el DNU 70/23 recibió en el Senado, el mercado tiende a estabilizarse. Los precios se desaceleraron en el punto de partida de los contratos ante una expansión inmobiliaria récord
www.infobae.com
March 19, 2024
Despite the rejection that DNU 70/23 received in the Senate, the market tends to stabilize. Prices slowed at the starting point of contracts amid record real estate expansion
By José Luis Cieri
The combination of more available options and price adjustments suggests a more favorable dynamic for those looking for housing, while posing challenges for owners and developers in a fluctuating economic context. (Illustrative Image Infobae)
After the repeal of the Rental Law through a Decree of Necessity and Urgency (DNU) 70/23, the real estate market in the city of Buenos Aires registered a notable increase in the supply of apartments for rent. An analysis revealed that unit availability expanded 304% year-on-year. Despite the Senate 's rejection of the validity of the DNU, it will remain in force until the Chamber of Deputies rules on the matter, which will only do so next month.
Since the end of the year when the 2020 Rental Law was repealed, the supply of housing has reached record levels. Now, with the ability to establish flexible agreements between the parties, landlords realize they can negotiate 12-month or two-year leases, with adjustments to compensate for inflation over shorter periods.
The work carried out by Argenprop confirmed that 1 and 2 room apartments led the growth with an increase of 375% and 286% respectively, followed by 3 room units with 162%, while the largest apartments, 4, 5 or more environments registered more moderate increases of 67% and 74% respectively.
Currently, a 35-square-meter studio apartment in Almagro or Caballito has a starting price of $150,000 per month, while a 45-square-meter two-room apartment in Almagro, Parque Patricios or Palermo SoHo starts at $185,000 per month.
Gonzalo Villanustre, CEO of this platform, confirmed to Infobae that “this expansion in supply translated into a slowdown in rental prices, mainly in the largest units. By November 2023, these prices had reached their maximum, but by February 2024, a reduction of at least 15% was observed in the average price of 3- and 4-room apartments in CABA.”
A 3-room apartment with 60 m2 in areas such as Constitución, Liniers or San Nicolás has an initial price of $200,000 per month. Meanwhile, 4-room apartments with more than 80 m2 in areas such as Parque Chacabuco, La Boca or Recoleta, start at $320,000 per month.
Infographic: Marcelo Regalado.
The currency in which offers are made also showed significant changes; ads in pesos increased by 258%, while those in dollars increased by 112%. “The continued presence of offers in dollars is attributed to several factors, including exchange volatility and demand from foreign tenants,” Villanustre added.
The analysis by neighborhood revealed that supply increased in all areas, with Palermo, Belgrano, Caballito, Villa Urquiza and Almagro being some of the neighborhoods with the greatest increase. However, areas such as Villa Lugano, Versalles and Villa Soldati experienced the smallest, although still significant, growth.
Greater pace in real estate
With the variability in prices, and the increase in the diversification of proposals by area and size, the CABA real estate market seems to be entering a new stage.Francisco Altgelt , from Altgelt Negocios Inmobiliarios, pointed out that since the implementation of the DNU, a significant increase was observed in the percentage of the property portfolio destined for residential rental (not temporary). “Assessments for traditional rentals grew week after week, tripling in some cases.”
The previous law and its modifications lacked predictability and legal security, which affected the defense of private property, the segment argues.
“The annual update implied losses for the owners in the face of inflation, while the extension of the contract in an environment of uncertainty was not attractive for investors. The implementation of the DNU resolved these problems. In our offices, the number of properties for traditional rental has expanded by 20% since the end of the year,” acknowledged Diego Migliorisi , of Migliorisi Propiedades.
Even real estate agencies receive numerous queries from owners who are still undecided regarding their next steps.
In general, contracts are being concluded with a duration of two years, in which payment is made in pesos and are updated according to the Consumer Price Index (CPI) or the Lease Contract Index (ICL), with quarterly adjustments. or quarterly.
In Century, the offer of traditional rentals in CABA registered an increase of more than 100% in just almost three months.
Eduardo Casasnovas , from Century 21 Casasnovas, noted that “however, despite this increase in supply, demand remains significantly higher, which translates into rapid occupancy of rentals offered at market prices and with reasonable conditions.” . Consequently, tenants have few opportunities for negotiation, because the properties are usually rented for a period of no more than a week.”
Deceleration
The speed with which an apartment is rented will also depend on its price, the conditions of the agreement and the condition of the property. “Prices have slowed and the success of closing a deal quickly will also be determined by the figure that has been published in the market,” Altgelt added.Although inflation remains a reality, an evident slowdown in values was noted. With the increase in supply, competition in the real estate market intensifies, resulting in a situation where properties with uncompetitive prices are not rented.
Migliorisi commented: “Landlords are facing increased competition, as most are looking for two things: securing a good tenant and not losing out to inflation.”
Another trend is that landlords who previously offered properties for short-term rentals are changing their approach. “The majority lean towards traditional rentals. They opt for contracts in pesos that provide them with superior profitability and reduce the risk of having unoccupied properties,” Casasnovas concluded.
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