The constant rise in prices, as a consequence of permanent inflation in Argentina, is one of the main concerns of the people. In this sense, the cost of rentals is no exception.
According to an analysis carried out by the Center for the Study of the New Economy of the University of Belgrano, since the rental law, which entered into force on July 1, 2020, until March 1, its values shot up 245%. This means a 32 month consecutive rise. The curve described by the index also shows that since June 2022 it accelerated its growth with double-digit values, which peaked in January 2023 and then dropped a few points in February and March.
Rentals: confirm “strong process of housing polarization” and raises to renew in March
“Although between the months of February and March 2023 we noticed a slowdown in the rental price adjustment index, given that they were in the order of 17 and 16 percentage points compared to January 19, the truth is that the curve It continues to show an upward trend”, pointed out Víctor A. Beker, director of the Center for the Study of the New Economy at the University of Belgrano.
It should be remembered that, according to current regulations, rental contracts for housing must be made for a period of 3 yearsso many of the new maturities will occur during this 2023.
Temporary rental boom: the reasons behind a trend that grows day by day
The studios are the best sellers in CABA
In 2022, property values hit their floor. In the City of Buenos Aires, the sale prices of the studio apartments reached prices similar to those that were marketed in 2012. This caused them to become the most demanded product, both in the used market and in projects from the well. .
According to the survey prepared by Predial, the 46% of completed sales of used units last year were studio apartmentsfollowed by apartments with two rooms (32%), three rooms (18%) and four rooms (2%).
Meanwhile, in the “brand new” segment, these apartments accounted for 40% of the real estate operations with the difference that those with two rooms were also in high demand (38%). Behind them were those with three (20%) and four rooms (2%).
The purchase and sale of properties increased almost 9% in the province of Buenos Aires
Last year, prices averaged u$s 65,300 for new studio apartments and u$s 55,600 thousand used ones. While the two rooms quoted US$102,800 and US$76,000, respectively.
Regarding the neighborhoods where the highest sales were made, the report indicates that “Palermo, Belgrano and Caballito prevailed because they are areas with more purchasing power”, both in the segment of new and used units.
Among the factors that explain this trend, Gabriel Brodsky, CEO of Predial, pointed out that “people do not reach larger units due to the loss of purchasing power and lack of credit, mainly”. And he added another reason: “We see that there is a flourishing movement of investors who aim to explore the units on Airbnb and the monkeys are the most profitable for temporary rental.”
Likewise, he stressed that “since the rental value of a monkey does not vary too much with respect to a two-room, buyers opt for the former because the capital investment is lower.”
MRI / ED
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