When are apartment prices finally going to fall??

[steveinbsas]

My apartment was US$1096 in Brooklyn (full one bedroom, eat in kitchen, walk in closet - water included) and my fiance was renting a studio in the Upper West Side of Manhattan for US$1300 - his apt could fit in my bedroom. Most of the time, the issue is location in NY.
It looks like prices are high throughout BsAs. We are looking to rent in Flores and hope that they will be a bit more reasonable there!!

Why would you want to rent in Flores?

Is it because compared to Palermo or Recoleta, Flores is much more like Brooklyn than Manhattan?

and equally (if not more) dangerous...

(The issue is location here, too.)

 

[steveinbsas]

Yeah you can find a cramped studio in BA for about $500-$600 but what's the point of living on a tight budget in Argentina?

Exactly!

Bye-bye, birdie.

(Remember the film with Ann Margaret and Dick Van Dyke.)

 

[steveinbsas]

I have noticed, in many cases, that Argentinos seem to want to do the opposite of what a free market would nomally have them do when business falls off. I.e., they tend to raise prices to get more money from fewer customers instead of lowering prices in order to attract more people to their business.

Actually, it might work if (somehow) it creates an image of scarcity...

It all depends on the presentation...

 

[ssr]

I have noticed, in many cases, that Argentinos seem to want to do the opposite of what a free market would nomally have them do when business falls off. I.e., they tend to raise prices to get more money from fewer customers instead of lowering prices in order to attract more people to their business.

Agree completely. It amazed me once I realized this attitude, but it was part of the learning curve on how things work here.

Yeah, what's the deal with that? How do businesses succeed here with these delusional business practices? I noticed a couple of shops on my block dry up and neither ever seemed to have any customers but instead of making any rational moves that would attract new customers they just continued operating the same way and raised their prices. Eventually, after like a year, they both went out of business but it seems like there are plenty of other businesses in Argentina that manage to survive without any customers. Are there maybe just lots money-laundering operations out there?

Whatever it is, there doesn't seem to be much incentive here to improve products and/or services or to lower prices or to do anything at all, really, to be more competitive. It's amazing sometimes to see how little interest salespeople have in actually selling anything. If it weren't for the labyrinthian laws (and, well, the constant risk that the entire country might crumble to pieces as soon as one makes an investment), it seems as if it wouldn't be all that difficult for folks from more competitive countries to come down and dominate every in industry in Argentina.

 

[jp]

A lot of the retail shops you see in expat heavy areas (palermo, especially soho) don't really intend to make money. They are giant, expensive adverts for the brand. Having a shop in palermo is raises your profile, and gives you a bit of kudos that you can recoup elsewhere. Head out to the malls, or the scruffier parts of town and you'll see them doing brisk business. Life looks very different outside of tourist/expat stomping grounds...

But on top of that, you've also got lots of dirty money being cleaned up, and lots of vanity projects - millionaire's kids playing at designer/restauranter.

 

[citygirl]

The problem is prices are rising (and FWIW, most IBs tend to put the real inflation here at 30%).

Prices in '05 & '06 were artificially low. And owners expenses have gone up quite substantially, hence why many of them have raised their rents. That being said, I have found owners pretty willing to negotiate for long-term rentals. You are much better served dealing directly with an owner, not a broker or real-estate agency. I'm paying 1300 USD for a fully furnished 125 square meter apt, 2 brs, huge terrace, high floor in a great area, 24 hour security, all building expenses included (although I pay apt expenses - cable, wifi, etc). The asking price was 1600.

 

[NYKate]

Why would you want to rent in Flores?

Is it because compared to Palermo or Recoleta, Flores is much more like Brooklyn than Manhattan?

and equally (if not more) dangerous...

(The issue is location here, too.)

To be near his family. They live in a really nice area of Flores. He lives there now as well. Flores isn't anything like Manhattan however it is like parts of Brooklyn. Originally we wanted to live in San Isidro or Pilar I didn't want him to have to commute too far and I only know his family there so far.

 

[steveinbsas]

To be near his family. They live in a really nice area of Flores. He lives there now as well. Flores isn't anything like Manhattan however it is like parts of Brooklyn. Originally we wanted to live in San Isidro or Pilar I didn't want him to have to commute too far and I only know his family there so far.

If the commute is by subway, linea d is the best, but recently it has become almost as hellish as the rest of the lines (except on weekends).

All of the other lines are much worse.

 

[nikad]

Short term apt rentals have increased due to higher costs and inflation. Long term apt rentals are about the same and cheaper in many cases due to a highly increased offer. During the last 3 years while INDEC gave one digit inflation figures ( 7-9% ) everybody knew ( even unions when negotiating salaries ) that it was around 20%. For this year 30-35% is expected.

 

[wandererbird]

Exactly!

Bye-bye, birdie.

(Remember the film with Ann Margaret and Dick Van Dyke.)

Don't get nasty.

The point is first, a question if people think apt. prices will fall back to a more reasonable level. They're inflated right now. If you're paying $1300/month for rent in BUENOS AIRES you're nuts.

That's the second point. I'm willing to pay more for better value elsewhere...like Brazil, which is a more interesting country in the end. Price is a major attraction for Buenos Aires. Either that, or I'd go some place like Thailand or Vietnam and live for 1/4 the price without the pretensions.