Monday, July 28, 2014

Rents increased 25.4% in a year

Rental rates stood at 25.4% in June over the same month in 2013 on average, and the price of apartments fell 1.33% in the same period, in the City of Buenos Aires.

These values ​​correspond to units of one and two rooms, which are the most sought after in the market, while medium properties of 3 and 4 rooms recorded an annual decline of 1.8% in the selling segment.

Large departments (5 Rooms or more) instead followed an upward trajectory, accumulating a rise of 3.07 percent in the last twelve months, especially driven environments and five units with garage and more amenities.

This was said to "The look awake" by Continental Roberto Arévalo, President of the Chamber of Real Estate Argentina, entity describing an economic outlook bleak for the short-term uncertainty facing the industry for almost three years ago and now is compounded by the risk of default.

The supply of apartments for rent rose 4.4% in June compared with the same month of 2013 and prices (for the properties of one and two rooms) they advanced 2.6% in the month compared to 25.4% in YTD.

Holiday mid-tier department-which offers 3 and 4 main rooms were up by 27.48% on average, "closer to the measurements of inflation released by the National Congress," he said.

He further explained that "although in the last month the largest growth occurred among the larger units, the reading of the last twelve months has to (particularly monoambientes) girls units as the leading protagonists of that expansion of supply."

Average property prices are still below the levels of last year, but in May showed a recovery that was confirmed in June with a minimum increase of 0.17 percent from the previous month.

Arevalo won the rebound to the combination of the devaluation of January (which reached nearly 20 percent in three exchange wheels), persistent inflation and an exchange rate relatively calm.

Describing the economic scenario, Continental raised by both the capital and the country go through "an uncertain outlook for the near future (including the risk of a new default), in a context of inflation and devaluation."

In that regard, he noted the loss of purchasing power by the mass audience bid values ​​(properties) stable dollar, along with a stronger dollar tends to rise; lack of credit and low construction. "

In this regard, the company said that the housing market has been operating for several months "half" of what he did years ago, and then operating even when focusing on a reduction in demand.

According to data from the Association of Notaries, in May 2014 2.898 scriptures were implemented, which is equivalent to 725 per week during the preceding five years at FX market, the average for the month was 1,426 per week.

These data cited by the report of the Chamber of Real Estate indicate that the market is marching at a rate 49 percent lower than its previous dynamics.

"At the macro level readings become repetitive, and nothing anticipate structural change soon. The need for a change of conditions in the business scenario, it is now undeniable. Yet no actor or sector can do it alone" said.

The organization that represents the real estate around the country were asked "how much should we expect to recover the ability to articulate projects together, to rebuild social capital: to play together."

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