Inflation and parities continue to accelerate the coefficient to which the BCRA appeals to set increases. How will the rise be at the start of this year?
For patrick eleisegui
01/01/2023 – 7:28 p.m.
The weight of unleashed inflation, and the presence of the salary variation in the coefficient that determines the increase in rents, made the closing of 2022 another dramatic instance for tenants in Argentina. It happens that, they expose from organizations of the real estate sector, the percentage of increase that enables the current law It will climb to almost 81 percent at the start of this 2023.
But the bad prospects do not end there: marketers they anticipate an increase of more than 83 percent for the second half of this month of 2023.
From the Professional Real Estate Association (CPI) they indicated to iProfessional that the increases continue to rise by elevator from a general rise in prices that weighs on the current legal framework. In the entity they indicate that the discussion for the eventual modification of the current rental law would only be resumed next March. Until then, increments will be the dominant stage.
In the CPI they point out that the supply of apartments available in the rental market has been further reduced in recent weeks. And that one-room units are practically no longer available, a type of property that until the beginning of the last quarter of 2022 did not bear the scarce label that did identify PHs and two- and three-room units.
in dialogue with iProfessional, Marta Liotto, head of the CPI, reported that the beginning of January 2023 will arrive with an average rise of 80.81 percent. And that that percentage will climb to 83.3 percent as of the 15th of the same monthaccording to the coefficient established by the Central Bank (BCRA) for the annual adjustments established by the current rental law.
Raise rents: January will be dramatic
“By the end of the first half of January we will be above 83 percent. Inflation does not stop and parities also affect the index, so we will be at that percentage. In the real estate sector we do not know how we are going to get out of this dramatic situation. It is a very serious crisis,” said the board.
“People are barely able to afford the rents. For their part, the owners receive money that is not enough for them. The profitability is negligible. To this we have to add an ever-increasing reduction in the stock of available units. Today studio apartments are no longer available. There are couples who already rent this type of apartment because there are no more than two and three rooms,” he added.
Rental values rose significantly and consistently throughout 2022.
Liotto predicted an even more difficult scenario for the first quarter of this year from a potential modification of the current law that It would only be dealt with when the ordinary sessions returned.. “The legislative power will only resume its activities in March. Today we are going through a state of abandonment in the face of an urgent problem that all of Argentina is suffering from,” said the interviewee.
“Fortunately, the responsibility of the tenants does not change and we continue with the historical average of delinquency. That is, of the order of 5 percent. The prosecution also continues low, around 2 or 3 percent. In this sense, the The situation has not yet changed. But the uncertainty is total in the face of the strong and constant rise that occurs every month,” he concluded.
Rentals: apartments are not found
These days, based on the main real estate marketing platforms, the number of properties with 1, 2 and 3 rooms that are offered for rent in the Buenos Aires geography are below 1,000 units. It is an unprecedented availability due to its scarcity.
At the base of ZonaProp, iProfessional found a stock of just over 2,480 apartments of these characteristics, but detailing at least 60 percent of what is offered corresponds exclusively to to the temporary rental market with a focus on tourism.
Precisely the remaining 40 percent appears as the only portion available to those who demand a long-term home. Another of the most used platforms when looking for real estate is ArgenProp and in this case the collapse is even greater: the availability of units with 1, 2 and 3 rooms barely exceeds 540 apartments throughout the Federal Capital.
Regarding values, both sites advertise studio apartments that average 45,000 pesos, although with expenses that can reach 20,000. Two-room dwellings, on the other hand, they start at 60,000 while the three rooms start at 85,000.
The supply of rental properties is the lowest in at least a decade.
From the real estate sector they assured iProfessional that, prior to the pandemic and the imposition of the current rental law, the supply of apartments in those sizes was located at least in the 6,000 units available.
