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Rentals: The drastic change in the market after the DNU and which are the most sought-after apartments in the Buenos Aires offer - Infobae
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Alquileres: el cambio drástico del mercado luego del DNU y cuáles son los departamentos más buscados en la oferta porteña
Un estudio privado confirmó que en un solo mes la disponibilidad de viviendas se incrementó un 36,5% y hubo leves variaciones en el precio medio en CABA
www.infobae.com
March 8, 2024
A private study confirmed that in a single month the availability of homes increased by 36.5% and there were slight variations in the average price in CABA
By José Luis Cieri
Two-room apartments are among those that grew the most as part of the Buenos Aires housing supply since the DNU promoted by the Government came into force.
The impact of the presidential DNU on the rental market drives a notable increase in supply week after week. A private analysis revealed a month-on-month increase of 36.5%, marking a record.
The majority of used apartments offered in pesos are concentrated in the 2 rooms, with a total of 786 units. The single-room apartments reach an offer of 288, while those with 3 rooms reach 407. Finally, the largest apartments, with 4 rooms, have the lowest availability, totaling 115 units, with prices established in national currency.
These data were compiled by Real Estate Report, which also specified that the increase in the number of units on offer grew by 189.7% since December 2023.
Germán Gómez Picasso, from this platform, told Infobae that the repeal of the Rental Law almost automatically boosted the growth of the rental supply. “No one anticipated it would be so fast. But there is not much more to analyze; “When the rules are clear, the market responds quickly,” he assured.
Three-room apartments are also part of the advancement of the offer in CABA
According to Gómez Picasso, 1 (single room) and 2 room apartments are the most common types of homes in the portfolios of retail investors, due to the total cost or entry ticket. “There are more savers willing to purchase a USD 60,000 unit than those who can buy a USD 200,000 unit. For this reason, builders tend to develop small units, since they are the most in demand and abundant in the market to be used for rent.”
Values that decelerate at the starting point
Regarding the average requested rental values, an increase is observed compared to January in 1 and 3-room units. Conversely, the average for one-bedroom units remained stable. In the case of 4-room apartments, where the supply experienced notable growth, there was a slight decrease in their average price.Continuing with prices, last February, the average offer value for a 1-room unit stood at $250,000, reflecting a 4.17% monthly increase. Meanwhile, three-room units were priced at $450,000, with an increase of 1.69% monthly. The 2-room units maintained a stable value at $300,000, and the 4-room units experienced a reduction to $615,000, marking a monthly decrease of 2.38%.
The initial offer prices grow very slightly in relation to inflation and even, depending on the case, remaining stable or with very slight falls, they would also demonstrate an adequacy in relation to the payment possibilities of the objective demand and the possibility, now open from of the DNU, if it is not so enormously behind in relation to inflation.
Favorable effect
In the real estate sector, there is an improvement in general market conditions, and it is expected that values will gradually adjust in the coming months. Furthermore, it is recognized that the initial phase after the DNU is characterized by an unprecedented increase in rental prices compared to previous years.“Last year we concluded with practically zero supply. Subsequently, prices saw a significant increase. Initially, an upward trend was observed, even with cases of owners with excessive expectations. Now values are beginning to adjust progressively. Although it is undeniable that they are at high levels, they fit the context of prices that registered a general increase,” said Laura Spirito , from the M. Luján real estate company, with operations in the areas of Mataderos, Villa Luro and Liniers.
In the last month, a marked increase in supply was observed, signaling a notable change in the real estate scenario.
Spirito added: “Today we are experiencing more fluid contract negotiation between the parties, where values and update indices are discussed. In most cases, the preference for quarterly adjustment prevails.”
Inflation that tends to slow down drives the request for adjustments at increasingly shorter intervals.
“Unfortunately, as long as the general price index does not experience a notable decrease in its pace, we will continue to face these conditions,” Spirito said.
In relation to support for tenants, preference leans towards requesting surety insurance as a means of guaranteeing monthly payment in this scenario of economic uncertainty. Tenant groups maintain that this option gained ground due to the difficulties in obtaining a property guarantee, a common situation among the majority of people looking to rent.
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