:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/ETIG6LDANZAENEHBFPTQPIJJ3Q.jpg "The college side of the rental drama: Student demand clashes with supply of units at an all-time low")
Days before many university students are due to return to class, those looking for a home to rent have come up against the reality of the Argentine real estate market since the controversial sanctioned tenancy law came into force in July 2020.
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At present, demand is facing two situations that have worsened over the past 6 months: supply is at its historic minimum, in an unprecedented collapse, and increases exceed 85.87% over one year, a complex situation for those who must enter into a contract or renew it.
The problem is simmering in the main cities of Argentina, and students and their parents have to juggle to find an affordable apartment. This happens near the faculties located in the city of Buenos Aires, in Rosario, Córdoba or Plata, four of the main centers where most university study houses operate.
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Currently, in CABA, it is estimated that there are less than 2,000 apartments for rent and in pesos, while 70% of the remaining supply is in dollars for temporary contracts.
Hernan Iradiof the Auge company and president of the Fundación Vocación Inmobiliaria, said GlobeLiveMedia that there is “a strong demand from students looking for accommodation”. The rental law, he explained, “has expelled the owners of apartments who rented them and now advertised them for sale. Today we see that many students delay the decision to rent or get together in twos or threes, even if they don’t know each other, and try to find an apartment to pay the expenses together and so that their pockets don’t hurt so much”.
Today in Palermo, Barrio Norte, Recoleta, Tribunales or Belgrano, getting a studio costs between $60,000 and $80,000, a 2-bedroom hovers between $100,000 and $120,000, while a 3-bedroom does not go down below $150,000. And if they are in a building with amenities at the price, you have to charge an average of 10%.
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“Several students ask for three-year leases, which they estimate to conclude many diplomas. On the other hand, the one who comes to do a DEA uses the indefinite term contract because he calculates to reside there for a maximum of 6 months. Always talking about students, especially from inside or outside”, develops Iradi.
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The apartments offered are rented very quickly, some within an hour of their publication. Something that was noticed in Buenos Aires is that many Uruguayans came to study and they made several of the deals in the last few weeks.
An equipped 2-room apartment in a temporary format costs from $180,000 per month.
In Cordoba there is a very high demand these days, confirm the voices of experts in the real estate market of this city.
The most requested are 2 and 3 room apartments. Rental values for the former are between $85,000 and $125,000 per month plus expenses, and the price varies by location and whether they have amenities.
“Whereas 3 bedroom apartments with two bathrooms range from $150,000 to $190,000 depending on location and are more expensive if they have amenities in the building. The neighborhood most in demand for rent is the Nueva Córdoba neighborhood and in second place the areas surrounding Ciudad Universitaria, in the center,” he explained to Infoby Virginia Manzottiowner of the homonymous real estate company and vice-president of the Federal Council of Real Estate Associations in the country (COFECI).
The agreements, as indicated by law, have a duration of three years and with an increase adjusted annually in accordance with the index of leases (ICL) regulated by the Central Bank: in February 2023 the increase was 85 .87%.
Manzotti, added that “this index 12 months after the signing of the contract causes an agonizing situation in the economy of the tenant, on the other hand and in the case of the owners, the modification of the contracts which began to be carried out from 2 years to 3 years had a negative impact and caused many to choose to put their properties up for sale, causing the lack of rental supply and price increases that we see today.We believe the regulations should be reformulated as soon as possible”.
In Rosario, at this time of the year, there is a high demand. Many young people choose this place to study and as a life project. In addition, rentals are sought in neighboring municipalities with a strong agricultural profile.
Andres GariboldiPresident of the Rosario College of Real Estate Brokers (COCIR) and Secretary of COFECI, underlined GlobeLiveMedia that “today these localities are not having a good time due to drought and economic instability, but beyond that, by prioritizing the education of their children, parents always favor that they can be comfortable during their studies”.
Demand from university students is focused on bachelor apartments that fetch more than $40,000 per month and one-bedroom apartments that are worth between $50,000 and $55,000 per month.
The terms are in accordance with the law of 3 years, the provincial seal is paid by the tenant and the charges as well. The owner pays a 10% administration fee each month. The general property tax is paid in half and the property tax is paid by the owner, and the services by the tenant.
“The most chosen areas, both for renting and for buying, are the houses close to the universities of medicine, dentistry, among others. Close to the bus station and the University City area, better known as La Siberia, in the República de la Sexta district,” Gariboldi explained.
In terms of sales, a student studio is what sells the most. They are in the range of 35,000 USD although they can also be found at 30,000 USD. They cost around $45,000 new.
Gariboldi, expanded: “We are noticing greater demand from those who wish to send their children to study and who may have previous savings, so they are analyzing the possibility of buying to avoid a rental expense of 5 or 6 years during the duration of the degree”.
Also in La Plata there are many consultations and few offers to satisfy the demands of students who will move to City of Diagonals for the duration of your study plan.
The demand comes from many students from the interior of the province of Buenos Aires and some from the interior, especially from southern Argentina.
Caroline Otero Rossiof Otero Rossi & Cía., told GlobeLiveMedia “than the studios that were available they flew these days. It was about $55,000 a month plus $8,000 in expenses. They were all rented and now students rent 2 room apartments. For example, on calles 5 and 58 with one bedroom, it was rented for $65,000 plus $14,000 of expenses, and another on 5 and 44, with 2 bedrooms, was for $62,000 plus $16,000 of expenses” .
One bedroom apartments also have to pay for water and it’s still $1000 a month. Therefore, those with 2 bedrooms end up taking out around $70,000 per month.
“There are very few 3 rooms, both for students and for a typical family. But sometimes, some landlords end up asking that the contracts be in dollars but in a format closer to the temporary than the traditional stipulated in the rental law, ”developed Otero Rossi.
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