Have rents gone down due to recession?

[MrBart]

Hi Everyone,

I'm moving to BA shortly and I'm just wondering have rents, especially the cost of apartment sharing, gone down due to the recession?

I'm from Dublin and here there has been a reduction in the cost of renting due to the economic downturn.

Suerte.

 

[syngirl]

The guy across the hall from us (in Las Can) WAS paying $1300 pesos a month on a 2yr lease including a parking spot. The contract expired last month. The owner wanted to jack his rent to 3000 pesos a month. The guy moved out, said no way. Either the owner is an idiot and thought a local would actually pay that much money, or he just wanted him out so he could rent to a foreigner. Apartment has been empty since, will be curious to see if someone moves in this month.

Prices aren't going down on rents yet, especially not foreigner short-term rentals. The local contracts from the newspapers, appear to have plateaued, but certainly are not going down.

Seems the basic psychology is this: "The world is in crisis. Foreigners are probably going to stop coming. Must get as much money as I can right now from short-term rentals". Basic psychology in Argentina any time before a crisis -- must get all my cash now, so even if it kills my business I'm just going to raise my prices as much as I can and try and make a short term profit before going bankrupt.

 

[steveinbsas]

Rents here have declined as much as the price of rubber...er, I mean cheese.

 

[perry]

The Argentine mentality is opposite most westerners. For example if not sold for a while jack up price as sooner or later someone will pay is the idea . There are many properties for rent and sale in Palermo Soho that have been vacant for over 2 years due to the ridiculuos asking prices . Normal mentality would be to negotiate a better deal instead of having a property empty but many here do not understand the word COMPROMISE:

In regards to deals for rental and apartment sales there are definetly some better deals out there than six months ago and 90 percent of the time they are foriegners giving good deals on their apartments for long term rent . There are some excellent deals in apartments sales as well with foreigners cashing in on their well situated properties at below market prices.

 

[nikad]

I expect to see an interesting drop in rental prices by may/june ( more new apartments are unsold and will be put out for rent, more offer = lower prices )

 

[balle13112]

Anything a gringo has to pay for will not go down, Argentineans will heist a gringo in good or bad times.

What you can try and do is negotiate. I've been partially successful but you will piss off alot of portenos, esp since you're a gringo, for even trying.

 

[steveinbsas]

I expect to see an interesting drop in rental prices by may/june ( more new apartments are unsold and will be put out for rent, more offer = lower prices )

I hope you're right. But my electric bill just doubled and I continue to pay higher "apart" fees every month. With continued inflation, a drop in rents is not as likely as desired.

I've never heard of a price drop referred to as interesting....perhaps you meant significant?

 

[nikad]

I hope you're right. But my electric bill just doubled and I continue to pay higher "apart" fees every month. With continued inflation, a drop in rents is not as likely as desired.

I've never heard of a price drop referred to as interesting....perhaps you meant significant?

lol, I guess I can´t hide the English is not my mother language Btw, in order to not have to pay ( at least until the justice says wether this is legal or not ) the outrageous electric bills we are getting ( same period last year 250$ this year I got 855$ !!! ) You have to go to your electric company office, fill a form, and they will charge you the bill without the new fee, then if the justice says it is correct, you will be charged for the difference.
I strongly believe that as more apartments are put out for rent ( as sales are scarce ) the prices should drop or at least the conditions will be more favorable to the tenant ( ie, years ago when there was a surplus of apts out for rent, real estate agents would only charge half of what they charge now, landlords would pay the city tax and sometimes wouldn´t be so strict with the garantia issue )
nik

 

[steveinbsas]

lol, I guess I can´t hide the English is not my mother language Btw, in order to not have to pay ( at least until the justice says wether this is legal or not ) the outrageous electric bills we are getting ( same period last year 250$ this year I got 855$ !!! ) You have to go to your electric company office, fill a form, and they will charge you the bill without the new fee, then if the justice says it is correct, you will be charged for the difference.nik

Great answer, Nikad!

Thank you!