BuySellBA
Administrator
The Rental Law died: The neighborhoods of CABA where it became a business again - El Cronista
Source:
Murió la Ley de Alquileres: los barrios de CABA en los que volvió a ser negocio
Pese a que los precios de los alquileres desaceleraron en los últimos meses, la rentabilidad está subiendo: a qué se debe. De cuánto es la renta anual en dólares
www.cronista.com
April 22, 2024
The Rental Law died: the neighborhoods of CABA where it became a business again
Although rental prices have slowed in recent months, profitability is rising: why is this? How much is the annual income in dollars
Renting an apartment is once again attractive for investors who are betting on brick. The profitability it generates doubled in just two years. Furthermore, after the Rental Law was repealed , by decree, free contracts were again made between the parties, with updates at the rate of inflation.
According to Real Estate Report data , in March, the average gross profitability of used apartments with one to four rooms reached 4.44% annually in dollars . This is double what was obtained three years ago, when it reached its historic low and barely reached 2 percent.
There is a key piece of information for investors. This return is what is achieved the first month of the rent. Then, profitability decreases as a consequence of inflation. But, now, with free contracts between the parties, the indices are updated more frequently.
The thing is that, after the DNU of President Javier Milei where the Rental Law was repealed, contracts were made again freely. Most are signed for two years, with bimonthly updates that keep pace with inflation.
"It is valid to point out that, since the majority of new contracts resort to an adjustment in shorter periods, the rent is more stable, making the investment somewhat more attractive. Before, with the validity of the Rental Law, which prevented updating before the year and, then, after six months and with a preset index that was below inflation, a drop in the real rental price and a profound decrease in profitability were quickly caused in a context of very high price growth in the economy," explained José Rozados, director of Real Estate Report.
The greater profitability occurs despite the fact that rental prices began to slow down their rise in recent months, as a result of greater supply in the market.
According to data released by the Unique College of Real Estate Brokers (Cucicba) , real rental values fell by 30% . The explanation: the supply grew more than 130% since December after the DNU .
Where is the most profitability?
According to the data collected in the report, three-room apartments are those that provide the highest gross annual income, reaching 4.63% on average. Those with two and three rooms showed a return of 4.45% and 4.35% in March, respectively.
The rental supply grew more than 130% in the last quarter, according to Cucicba data.
The explanation is simple: large units are the most sought after; Therefore, they are those that have higher rental values. In addition, there is a smaller offer.
For example, a three-room apartment for rent in Palermo, the most sought-after neighborhood, has an average value of $1.5 million.
The most profitable neighborhoods
In the two-room apartments, among the most profitable neighborhoods, Monserrat, Floresta, Constitución and Abasto stand out; The average annual return exceeds 5.5 percent.This is explained because, in these neighborhoods, the apartments for sale dropped sharply in value. But rental prices remained high. "Today, for $60,000, you can get a two-bedroom and rent it at a price similar to that of Boedo or Saavedra ," explained Rozados.
For example, in the Floresta area, an average of $400,000 is needed to rent a two-room apartment. In Palermo, that sum amounts to $500,000 a month.
www.buysellba.com
