Currently, the search for temporary properties is around 3% of total rentals, when last year that figure was around 9%
The sharp drop in foreign tourism has meant that renting a property temporarily is no longer such a profitable business. It is very difficult for owners to have a property busy much of the year and traditional rentals, with quarterly adjustments, became more tempting for many.
“Everything that is temporary rental for short stays of up to 30 days, it dropped a lot because we have less tourism, mainly from neighboring countries,” explained Darío Rizzo, CEO of Alternativa Propiedades. “But we are experiencing a large increase in executives who come to the country for work. Therefore, the demand for premium apartments grew in areas such as Puerto Madero and Recoleta,” said Rizzo.
According to Zonaprop data, today the Demand for temporary rentals fell in one year from 9% to 3%. This is a significant figure, considering that after the pandemic there was a boom in this type of rentals.
“Today the supply has decreased since the demand also fell, partly due to seasonality but fundamentally due to the rise in the cost of living in dollars in our countrywhich is no longer as convenient as before for foreign audiences. The rentals temporary ones that are in the periphery, not those in high demand, for months now they have been moving to the long-term modality, even in the furnished condition. Those that continue to function well are those that are at the heart of the demand, and in optimal conditions of furnishing and equipment, these units continue to have an audience,” explained Ignacio Mel, Director of Mel Inmobiliario.
Migration from temporary to traditional rental
Since the repeal of the rental lawa migration from temporary to traditional rental began. “Many owners who had units that were not in the best condition or in the most sought-after locations decided to switch to traditional rentals. This accommodated the traditional rental market Since today in peripheral areas it is easier to find units of this type when last year there was a strong shortage since many had converted them to the temporary modality,” Mel assured.
It should be noted that to have a property for temporary rental, it is important that it be well located and fully furnished. “Today, with the investment that furniture implies, you do not have an immediate return, which is why many who have empty apartments are turning it to the traditional rental“Rizzo stated.
How much does it cost to rent a property temporarily?
To take an example, a 2-room apartment can be around US$70 per night, depending on the location, typology, etc. Inflation in dollars has not yet been reflected so strongly in prices, but it is likely that by 2025 they will begin to rise.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
