2023-04-20 22:49:00
Rent it is becoming more complex for tenants. Added to the shortage of supply is a piece of information that escapes the Rental Law: the supply of real estate in dollars grew by 50%,despite the fact that the legal framework establishes that the lease contract must be carried out in local currency. Whether for purchase or rental, the reference price is usually the Dolar blue.
The data comes from a report prepared by Mercado Libre in conjunction with the University of San Andrés and the Argentine Real Estate Chamber.
“The supply of rentals in dollars is growing significantly, more than 50% on average in AMBA are in dollars compared to 32% the previous year, while in 2020 20% of the publications were in dollars,” he commented. Paul Brener, Mercado Libre Real Estate manager in dialogue with Scope.
Among the causes it is clear that the owners seek to cover themselves from low profitability but above all from inflation. A latest Real Estate Report report indicated an improvement in terms of gross annual profitability of up to 4% in dollars in some prominent neighborhoods, however this does not suggest that it will continue in the short and medium term.
In another order, it is important to note that the trend of advertisements for apartments in foreign currency is increasing from 2020 during the months of the pandemic (March, April and May) and continues until then.
The breakdown by region shows that in March 2023, the regions with the highest supply of real estate in dollars are GBA Norte (it went from 55% in March 2022 to 71% in March 2023), followed by CABA (24% a/a vs 42%), GBA Sur (20% a/a vs 36%) y GBA Oeste (10% a/a vs 14%).
This trend is not accidental. While a few years ago the rental of apartments in dollars appeared in more exclusive properties, now it has been deployed for the most sought-after 2 and 3-bedroom apartments. Within this framework, tenants find themselves in a trap when searching for real estate to move into: little supply and the majority of it is in dollars with salaries in pesos. A lethal combo.
Sharp decrease in the supply of apartments
In Buenos Aires city, the reduction in the supply of apartments for rent is very significant. According to Mercado Libre data, when comparing the 1st quarter of 2022 to the 1st quarter of 2023, the decrease in supply is 9%. The most affected were the apartments with 1 and 2 rooms with a reduction of 30% in the last year.
Bregner explained that “the rental offer in CABA fell drastically since 2020, then in 2021 it fell a lot and in 2022 the drop was more moderate; On the other hand, in the North zone the rental offer grows due to the expansion of new closed neighborhoods that have generated supply”.
What are the most demanded neighborhoods to rent in CABA?
The podium is led by Caballito (11%), followed by Palermo (9%), Belgrano (7%), Recoleta (7%) and Villa Urquiza (6%). In these five neighborhoods, the most sought after are studio apartments and 2 rooms.
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Rentals: How much do apartments cost in CABA?
According to the document, there was a substantial price increase in advertisements compared to 2022. Thus, the median rental price is located at $90,000 for studio apartments, $120,000 for 2 rooms and $210,000 for three rooms.
But the most interesting point is that the increases in values exceeded inflation. For example: in the case of 2 and 3 rooms, there were increases of up to 144% (March 2022-March 2023) while studio apartments increased by 138%.
In monthly terms, it was the 2-room apartments that suffered the most since they registered a 10% increase in one month (February 2023-March 2023) while in the case of 3 rooms it was 9% and studio apartments 7 .6%
As mentioned above, the North Zone is one of the areas with the highest growth in the rental offer due to the growth of the development of the real estate sector in that area. However, this data may not be the only reason that encouraged its impulse. The price is not a minor fact. The median prices that are being handled for rentals is $70,000 for a studio apartment, while for a 2 and a 3 room the value is $187,000, values well below those found in CABA.
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