Migration from sale to rental grows

Migration from sale to rental grows
February 21, 2024 – 17:52

A 40 m2 studio apartment can be rented for about $327,295 per month and a two-room apartment for $405,218.

Photo: Freepik

In recent weeks, the number of estate on sale. How is this explained? On the one hand, after the implementation of the DNU of Javier Milei who repealed the rental law, it happened that many of the apartments that until now were for sale returned to the rental market. According to data from Zonaprop, in January there was an increase of 62% in published notices compared to the previous month.

Another reason for this phenomenon is that there is a lot of speculation that prices will rise, so those who have the purchasing power complete the operation now.

“The buying and selling market is very active with prices still stable and a lot of buyer speculation that this could rise, that is why they make the decision to buy,” said Francisco Altgelt, from the real estate company of the same name. “The supply was reduced because demand increased and more apartments were sold. In addition, properties were written off waiting for another market,” said the specialist. He also added that in recent times fewer apartments have come in for sale because they have turned to renting.

Atypical summer for the market

“The market is quite busy, it was an atypical January. For four months now, writings have been above 4,000 per month, something that is very high. At the time of the mortgage loan they were between 6,000 and 7,000,” concluded Altgelt.

Today, the most significant change is the strong migration that occurred from properties for sale to rent. “The phenomenon that is occurring is that many owners who had their properties for rent put them up for sale and today they are seeing a regime that protects their investment and gives them more predictability,” said Diego Migliorisi, Managing Partner of the Migliorisi real estate agency.

“As for sales, prices will recover but over time, meaning that whoever wants to sell at a higher value will have to wait,” he added.

Price increase

The prices of rent they rose 21% in January. Currently, a 40 m2 studio apartment is rented for about $327,295 per month, a two-room apartment of 50 m2 reaches $405,218 per month, and a three-room apartment of 70 m2 has a price of $558,710 per month.

Despite the fact that there is more supply, tenants maintain that prices are through the roof and most owners ask for quarterly updates. In addition to this, they assure that in many cases the price does not match the type of property offered, whether due to maintenance, the number of rooms or the area.

Palermo is the most expensive neighborhood in the City of Buenos Aires to rent, with an average value of $508,160 per month. It is followed by Belgrano ($497,300 per month) and Chacarita ($492,018 per month).

Source: Ambito

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