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Buying a brand new apartment can be cheaper than in a well

Buying a brand new apartment can be cheaper than in a well
Buying a brand new apartment can be cheaper than in a well

Despite the increase in rental stock, prices remain high. Rentals in the City of Buenos Aires recorded an increase of 28.5% during the first four months of the year, nearly 40 points below inflation, according to private data.

The neighborhoods with the highest prices are those in the northern corridor, which include Palermo, Belgrano, Recoleta, Coghlan, Colegiales and Núñez, with prices ranging from $478,000 to $505,000 per month. Puerto Madero breaks this rule with demands exceeding one million pesos per month.

In this context, an unusual fact arises. According to a report prepared by Daniel Bryn of Zipcode, and author of Real Estate Monitor, In 19 neighborhoods, the price per square meter of new properties is lower than that of properties under construction, commonly known as “under construction.”

Traditionally, pit units used to be between 20% and 30% cheaper on average than those already completed and ready to move into.

The neighborhoods mentioned are: San Nicolás, Chacarita, Constitución, La Boca, Monserrat, Caballito, Núñez, Recoleta, Coghlan, San Telmo, Villa Lugano, Nueva Pompeya, La Paternal, Almagro, Balvanera, Recoleta, Villa Ortúzar, Villa del Parque and Villa Pueyrredón. These CABA neighborhoods stand out for presenting this particularityaccording to an analysis carried out by Daniel Bryn of Zipcode and author of Real Estate Monitor.

Causes of this phenomenon

This phenomenon is due to a combination of factors. Among them are supply and demand, the increase in material costs due to inflation (although they have recently decreased due to an 11.2% drop in product sales, according to Grupo Construya), the risks associated with well projects, strategic location and competition between developers.

Bryn added: “In this context, Núñez stands out as one of the neighborhoods with the greatest projection, comparable even with Puerto Madero for its potential for development and real estate appreciation. In this neighborhood, the average price per square meter for homes ready to move in is US$2,777, while properties under construction reach US$2,874 per square meter.“.

This phenomenon is observed mainly in neighborhoods in the process of consolidation, where developers find opportunities due to lower land costs or higher demand that moves from neighborhoods with excess supply and inflated prices.

Price difference between brand new and well-stocked properties

The difference in prices between new and well-developed properties can be influenced by various factors. For example, in neighborhoods like Palermo, the price per square meter for units new ones reach around US$3,000, while in the well it can exceed US$3,330. This is attributed to sustained demand in these areas and capital gains from completed projects.

rentals real estate mortgage loans

This phenomenon is due to a combination of factors. Among them are supply and demand.

Depositphotos

For well purchase, financing options and construction prices in a fluctuating economy determine an initial cost that will be offset by receiving a new product with better features and obtaining a profitability of 25% to 30% during the development of the work.

How much rents increased in June

Those tenants who signed their rental contracts rent prior to the DNU that repealed the law of rentalsfaced a record increase this month.

Lease contracts agreed in June 2022 and June 2023 suffered a year-on-year increase of 233.7%, according to the latest update of the Index for Lease Contracts (ICL). This is a record figure, since in May the adjustment was 221%.

In this way, a tenant who until now paid $100,000 for his rent, as of June 1, began paying $333,700. This is a considerable leap, which for many is beginning to be difficult to face.

Source: Ambito

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