2023-05-21 00:15:49
In recent times, properties for temporary rentals have multiplied In Buenos Aires city, largely the result of the ill-gotten rental law that is in force and the low profitability that conventional rentals offer. But these are not the only factors that seem to increase the demand for this type of proposal. According to market experts, the youth soccer World Cup and the increase in both internal and external tourism increase demand. The immediate consequence of this reality translates into a shortage of the apartment rental offer.
According to a report prepared recently by the Center for Metropolitan Studies (CEM) In the city of Buenos Aires there are more than 15,000 properties that are part of the temporary rental market. The work states that most of these properties are located in the neighborhoods of Núñez, Belgrano, Palermo, Recoleta and Retiro.
The survey indicates that In April, only in the Buenos Aires district, there were 15,144 active homes on offer on temporary rental platforms. A few years earlier, in 2019, the figure was around 9,300 units, so “in four years and with a pandemic in between, the offer grew 62 percent”, holds job.cad
The investigation that was carried out by the Urban Area of the CEM, directed by Matías Barroetaveña, states that temporary rentals are located mostly in the northern corridor of the City of Buenos Aires and mentions that “Six out of 10 are along Núñez, Belgrano, Palermo, Recoleta, Retiro and La Boca.”
Some brokers explain that In places like Recoleta, Palermo, Las Cañitas and Caballito there are many units that are not published, since in those areas there are waiting lists for “thirsty” temporary tenants. According to a study carried out by the Zonaprop firm, only 20% of the notices published on the portal corresponded to rentals, but a quarter were temporary.
According to Barroetaveña, Palermo and Recoleta are the ones that show the highest concentration; 36% and 15%, respectively, of the properties are offered there. “That is, these two neighborhoods gather more than half of the properties offered in Buenos Aires,” added the researcher.
Currently, a conventional rental offers returns that are around between 2.5% and 3%. Given this scenario, temporary rent became one of the stars of the real estate market, generating returns of up to 7% annual profitability, in dollars. The icing on the cake, without a doubt, is that this type of proposal not only has a high degree of occupancy, but also a constant turnover.
not everything is pink
Those who know explain that the temporary rental demands much more work and dedication so that the rent is high. For this to happen it is necessary to have the department very well equipped and it must be occupied almost all year round. The large rotation is presented as an inconvenience, since it generates greater wear on the unit.
the new pole
Both the developers and the real estate agents maintain that the Núñez sector, -limited by Udaondo, Bavio, Campos Salles and Lugones streets- which is known as the innovation park (which was designed on a 12-hectare property and which will bring together startups, universities, research offices, coworkings, shops and homes) It is presented as a new and attractive pole for temporary rentals.
There, in the Argentine Silicon Valley, construction will shortly begin on the Palmera Nova project, which will bear the seal of the Portland Group. The 12-storey complex, which will become the first smart building on that property designed to live and work in the placewill have units of two and three rooms designed to be rented temporarily.
According to sources from the developer company, there the value of the square meter will cost about US$3000. From the company they affirm that the project is aimed at students and young entrepreneurs with a focus on technology and innovation. The building will also have premises dedicated to gastronomy on its ground floor.
How are temporary rentals regulated in CABA?
In 2019 the ley 6255 to regulate the activity of temporary tourist rental in the cityreplacing Law 4632. It entered into force on December 20, 2019, but the coronavirus pandemic, which broke out in early 2020, delayed its implementation.
Since its sanction and until August of last year, the law underwent a series of updates that culminated in Resolution 170 of August 2022. The current regulation determines that The Tourism Entity of the city of Buenos Aires is the enforcement authority in charge of the Registry of Temporary Tourist Rental Properties.
According to the Law, the temporary rental does not have regulations regarding minimum contract time (since this can be for a single night) but -on the contrary- it establishes a maximum of three months. Another notable difference with the conventional rental law is that temporary leases can be published in dollars. These rentals must be registered (the purpose of being part of a registry is to know the tourist offer in terms of accommodation). Besides, the owners, administrators and those who manage, mediate or act as bidders under any title, they must be registered in this register.
On the subject, Barroetaveña -who is also a Buenos Aires legislator for the Frente de Todos- pointed out that “It is necessary that governments understand the phenomenon of temporary rentals as something that transcends the dynamics of tourismwhich is not only a commercial problem, but also implies urban and housing impacts. National or provincial legislation must be able to define temporary rentals as an activity other than residential use and must have a specific regulation to avoid distortionary phenomena.and reduce the negative impact it has on access to housing for those who want to live in the city,” he said.
In this sense, Barroetaveña presented a project to modify the current law of “Temporary Tourist Rentals” which promotes “more severe and transparent sanctions for landlords and platforms that do not comply with the regulations.”
The project aims for the control of this type of rental to pass from the Tourism Entity to the Government Control Agency and that “the funds collected by way of fines be assigned to the financing of social rental operations carried out by the Housing Institute of the City of Buenos Aires”, concludes the deputy.
THE NATION
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