High inflation and the impact of the rental law, among other factors, have introduced significant changes in the rental market. A very obvious one is the proliferation of temporary rentals. In them Many landlords ended up pulling their homes off the traditional market and handing them over to temporary locations. One of the options used to make the profits of the property profitable is to offer them on platforms such as Airbnb. How does the situation affect the tenants?
There is no lack of motivation to sell the property on a temporary lease: on average, renting an apartment on platforms like Airbnb is 131% more expensive than in the conventional real estate market. For this reason, the owners view it more favorably having guests – mostly tourists – on a temporary basis, in a less regulated, dollar-charged operation, instead of signing three-year contracts with only an annual adjustment amid 102% inflation. .5% year over year.
The price differential between the two types of rentals emerges from a survey carried out by the Latin American real estate portal Properati, which compared how much it costs to rent an apartment for a month in the traditional market and on Airbnb, in 34 neighborhoods of Buenos Aires.
According to the study, based on a reference calculation, on average, the temporary rental of a property for 30 days is between 46% and 258% more expensive on Airbnb than in the traditional rental market in Buenos Aires.
Clearly, both operations they are different models: in the traditional rental market, contracts are regulated by the Rental Law and whoever rents a house in this way does so to make it their own home. While Airbnb is a housing model that facilitates the rental of furnished properties for a short period.
In any case, according to Properati, the latter model “has had an impact on the traditional rental market, which has led the governments of cities such as Barcelona or New York to more strictly regulate the rental of tourist properties”.
The survey observed the prices in the different neighborhoods of Buenos Aires, Villa Luro is the most visible case of the price difference between the two: the average monthly rent is $62,245 while on Airbnb it is 258% more expensivewith an average price of $222,900.
Unlike neighborhoods like Puerto Madero and Palermo which mainly offer luxury and modern houses on AirbnbVilla Luro has a wide range of prices and most of the properties are ‘standard’ apartments. The most expensive has an estimated price tag of $386,400 pesos per month, and the cheapest is $105,000 pesos. These values are out of reach for many tenants, who in the traditional market find the most expensive apartment at $140,000 pesos and the cheapest at $37,000.
“Without a doubt, the temporary or vacation rental market presents an opportunity to maximize profits for homeowners. However, This opportunity becomes a further hardship for the locals, who already see the housing supply reduced enough. and the possibility of finding a rental”, warns Ariana Cafferata, Customer Success Analyst of Properati in Argentina.
In addition to Villa Luro, La Boca (237%), Barracas (217%), San Nicolás (183%)) and San Cristóbal (176%) are the neighborhoods where the monthly cost of an Airbnb apartment is furthest from the traditional rent in Buenos Aires. Instead, Puerto Madero is the neighborhood with the lowest price difference: rent orA temporary apartment there costs about $455,520 a month, which is 46% more than the traditional rent, which is $311,000.
Christian Leupold, commercial director of Avilis Real Estate, talks about the trend: “We have noticed an increase in requests for the purchase of units for temporary rentals, mostly 1- and 2-room units,” he said.
“From the point of view of profitability, it is a very interesting alternative for those who have a property or for those who bet on real estate as an investment. Rents are in pesos at the official dollar value, which allows for profitable returns, much higher than to traditional rents.
Although AirBnb is the most used platform for rentals of this type, according to Leupold, «in recent times some CABA real estate agencies began to promote this activity, offering owners an administration and maintenance service – it’s a new way to motorize the sector,” he said.
What is the rental price range in both markets? According to the analysis conducted by Properati, the average rent of an apartment in most neighborhoods of Buenos Aires fluctuates between 50,000 and 150,000 dollars pesos. The cheapest places to rent are La Boca, Parque Patricios and San Cristóbal; while the most expensive are Puerto Madero, Palermo and Belgrano.
Meanwhile, renting a similar property through Airbnb for a month costs between $150,000 and $250,000 in 85% of the neighborhoods surveyed. The cheapest sectors to rent temporarily are Agronomía, Villa Santa Rita and Parque Chacabuco; while the most expensive are Puerto Madero, Palermo and Recoleta.
According to Solange Esseiva, owner of the real estate agency H-54.Palermo, Recoleta, Barrio Norte and Belgrano continue to be the most attractive neighborhoods when planning a temporary stay. “The prices of apartments for two people fluctuate between $20 and $50 per day depending on the location, age, equipment and comfort of the building,” he specified.
Source: Clarin
