Those who decide to invest in different types of properties will have verified that offices continue to give a higher yield than apartments, but with a smaller difference than in previous years.. In the case of corporate real estate profitability fell from 5% to 4.5% in the last year, while in residential it rose from 2.4% to 3.4% in the same period.
This essentially happened because the stability of the official exchange rate and the lower demand on the market after the pandemic meant that, for the third consecutive year, the annual increase in office rent is less than the inflation rate. On the other, the departments, as a result of the increased risk and the updating of the imposed regime Due to the new rent law, they have seen increases above the rate of inflation.
These are some of the conclusions that emerge from the new edition of the report that Cushman & Wakefield, a global company of corporate real estate services together with the specialized media Real Estate Report, has been producing for several years.
According to these private surveys, during the third quarter of this year there have been a year-on-year increase in the rental value of apartments of 17% and 10% for offices. Meanwhile, inter-year changes in some economic variables against which rents are compared, such as inflation, reached 66 percent during that period. The RIPTE (average taxable earnings of workers) reached 51% e the official exchange rate increased by 16%
Although income has not grown as much in the corporate market, “investment opportunities are being generated, since the exchange rate, which has remained stable since 2020, and the surplus of pesos of large companies due to the restriction on the purchase of dollars has caused a scenario in which large companies continue to invest in the purchase of offices”, According to the report. At the end of the third quarter of the year, according to these surveys, approximately 400 million US dollars were transacted.
“Sales are produced in pesos at the MEP exchange rate, while rents are largely collected at the official exchange rate. This generates a compression of the rate of return which reaches 4.5%”.
Carolina Wundes, coordinator of Market Research at Cushman & Wakefield, commented that “despite the decline in asking price for office rent, the opportunity to preserve value in this market segment continues. She stressed that”premium spaces are active which currently predominate in the choice of investment, since they offer rates of return that exceed the averages of the total market”.
What you see in the residential market is a marked recovery of the rental value in the first three months of the yearattributable to the impact caused by the limitations on the periodicity of the initial price update, imposed by the new law on rents, which add up to an expectation of acceleration of inflation.
The residential market recorded a recomposition of the asking price with a consequent recovery of the annual rate of return, equal to 3.4%, which is close to the rate of return of offices this quarter.
According to José Rozados, president of Real Estate Report “the evolution of residential rental prices is positive, this is partly due to the updates given by the rental law and to some social factors. With increasing annual profitability and an increasing rate of return, the disparity continues between the weighted rental market, which adjusts in relation to the impact of devaluation, while the dollarized buying and selling market continues to be more inelastic.” , he has declared.
The Cushman Report and Real Estate Report were built from data collected by each company. In the case of offices, the average rental value required in the CBD market (central area) was compared, made up of the submarkets 9 de Julio, Catalinas-Plaza Roma, Centro Sur, Microcentro, Puerto Madero and Retiro-Plaza San Martín, while for the residential market the average value of three areas was taken as a reference: Barrio Norte, Belgrano and Palermo, for used two-room/three-room apartments standard without services.
Source: Clarin
