Prices for temporary rentals

[qwerty]

......Don't seem to go down do they?

This keeps surprising me because if you look at the websites they rarely get 40 to 50% occupation. Tourism is bit up from 2009 but that does also surprise because Argentina is keeping getting more expensive which should make Argentina especially for long-term tourist less attractive

How do you see the next 6 to 12 months?

 

[Davidglen77]

Welcome to Argentina! This is how the economy works here, if it doesn't sell, raise the price.......
Here's an example, my neighbor put her apartment up for sale in March 2009, $105,000, didn't sell for 3 months, so in June 2009, she raised the price to $115,000, didn't sell again so in December, she raised the price to $125,000, by March 2010, she raised the price to $130,000, V O I L Á.......sold for $128,000 in May 2010. Her explanation "bueno, tuve que ajustar el precio por inflación". That's how things work here! Don't count on prices coming down unless the government pulls the rug out from underneath us. Suerte!

 

[citygirl]

The reason prices aren't going down is that the building expenses keep going up. And I think landlords would rather get a few months at a good rate than lower their prices for higher occupancy and deal with wear & tear on the apts.

In reality - I don't think it's looking good for tourism long-term. Flights are averaging about $1500 per person from the US, tack on the $130 entrance fee and the fact that it's not so cheap here and there are a lot of reasons that people may look elsewhere. I've had a lot of friends from the US who were supposed to come down here but wound up going to Europe as it was cheaper, esp as the Euro has fallen against the dollar.

 

[qwerty]

The reason prices aren't going down is that the building expenses keep going up. And I think landlords would rather get a few months at a good rate than lower their prices for higher occupancy and deal with wear & tear on the apts.

In reality - I don't think it's looking good for tourism long-term. Flights are averaging about $1500 per person from the US, tack on the $130 entrance fee and the fact that it's not so cheap here and there are a lot of reasons that people may look elsewhere. I've had a lot of friends from the US who were supposed to come down here but wound up going to Europe as it was cheaper, esp as the Euro has fallen against the dollar.

But still this can only be maintained if you get a 40 to 60% occupation rate at a premium(7 days,10,14 days customers) if you don't get occupations-rates like that you have option then lowering your prices or rent it out 2 years at a lower rate(which in the end is probally better)

As far as I can see they occupation rate is somewhere around 50% and international arrivals untill this moment is slightly up

Foreign arrivals did go slightly down in 2009 but less then the worldwide market did(15 to 30%, wild guess) so it has been tougher to go down then I thought it would.

As for the long term tourist, there are still new arrivals and the real long termers(more then 2,3 years) seem to stay(lack of oportunity elsewhere?) but my guess is they mainly rent long term or buy

 

[citygirl]

Yes but lots of owners don't want 2 year rentals. It's too much of a risk. Plus if they've already furnished the apt, they aren't going to lower their prices to those levels - it wouldn't make financial sense.

Obviously prices will go up again come Sept-Jan as it's high season. Where we are a year from now - no idea. Depends on the economy, the exchange rate with the dollar/euro, etc.

A friend of mine has 5 or 6 high-end apts. The top apt (in Puerto Madero) has been sitting empty but he won't lower the price. He would rather have it empty than accept less money and have wear and tear on the apt. The rest are all rented, most are short-termers (2-3 months). I think there will continue to be a market for people with money, I just think Arg may fall off the "cheap destination" radar for those looking for a bargain.

 

[qwerty]

You can also rent it with furniture, many people offer it especially high end rentals. Premiums for temporary rental vs 2 year rental is prolly around 15-20% or 2 months of rent, you need a pretty good ocupation-rate to make it worthwhile and temporary rentals are offcourse a lot riskier

I would think that most owners have good ocupancy rates untill now, if this is different next year prices definitly have to go down, but I guess it al depends on foreign arrivals

 

[Davidglen77]

I really don't think people are going to stop coming to Buenos Aires or Argentina just because it's more expensive than other places in the world. I´m from New York City and I know people are going to laugh at this, but tourists never stopped coming and NYC is extremely expensive to live and visit. When I was a kid in the 1970s and 1980s and NYC was total ****hole and everything was broken, violent crime such as murder, drug dealing, gangs were rampant, Times Square and Broadway were still packed with tourists. Buenos Aires will always have an allure for certain things that are part of it's past and present such as Eva Peron, Cementerio de la Recoleta, Tango, San Telmo, Asado, Malbec, etc. AND this is a big world with many wealthy people so I don't think tourism will decline much if any since Buenos Aires is already on the map for places to see. And other places like wine country in Mendoza, las sierras de Córdoba, Llao Llao in San Carlos de Bariloche will continue to attract people just as the Fountainbleau does in Florida. Just my opinion.

 

[nlaruccia]

In Argentina common sense doesn't apply. In fact, I think it doesn't exist. Prices will keep going up and going up.

 

[qwerty]

I really don't think people are going to stop coming to Buenos Aires or Argentina just because it's more expensive than other places in the world. I´m from New York City and I know people are going to laugh at this, but tourists never stopped coming and NYC is extremely expensive to live and visit. When I was a kid in the 1970s and 1980s and NYC was total ****hole and everything was broken, violent crime such as murder, drug dealing, gangs were rampant, Times Square and Broadway were still packed with tourists. Buenos Aires will always have an allure for certain things that are part of it's past and present such as Eva Peron, Cementerio de la Recoleta, Tango, San Telmo, Asado, Malbec, etc. AND this is a big world with many wealthy people so I don't think tourism will decline much if any since Buenos Aires is already on the map for places to see. And other places like wine country in Mendoza, las sierras de Córdoba, Llao Llao in San Carlos de Bariloche will continue to attract people just as the Fountainbleau does in Florida. Just my opinion.

BA can never compare to NY, if you compare it to any city it would probally be Rio, Capetown, Melbourne, Auckland, Sydney or Bangkok. Big cities in the southern cone and/or 3rd world countries.

NY has been always a lot easier to reach for foreigners and the US and Europe have many more people that can travel then in the south

I agree that places like Bariloche, Perito Moreno, Cordoba, Mendoza and cataratas helps BA tourism as you have to go through there

 

[qwerty]

In Argentina common sense doesn't apply. In fact, I think it doesn't exist. Prices will keep going up and going up.

Anything that goes up comes down eventually, it happens about a million times for Argentina in the 20th century.

The only difference about this time is that Argentina was hardly hit by the global recession, atleast a lot less then the first world. I and many more were expecting that the 2008-2009 crisis would be the end, but it hasnt been so far