The record price of the blue dollar and the prestige of national universities create a very favorable scenario for those who have a department and opt for it. temporary rent foreign students and professionals.
“Invest in Bricks” This is advice that is always well received by those wishing to have a secure income in the medium and long term, which also allows them to preserve value. but Changes in the real estate market in recent years shake that recommendation.
Global effects such as the pandemic, and local ones such as the factual disclosure of the exchange market and failed rental laws, modified a scenario that flowed as traditional supply and demand.
COVID 19 accelerated the virtual work process and daily visitors declined in areas such as the downtown area and large office buildings are looking for a new way to remain useful and profitable.
Buenos Aires Ranks Best in Latin America Among Cities for Students
In the case of rental lawReforms that extended the terms in contracts and included an annual indexation index scared owners who create accounts and prefer not to take risks in the face of profitability at minimum levels.
Flood of students for temporary rent
But happens in every negative scenario A market place that remains firm and towards which many properties are turning: temporary rentals for foreign students and professionals.
Prestige and Gratuity of Argentine Universities They were always valuable features in this area and are now peso depreciationwhich a. Makes a perfect combination for soil etc. Number of students and graduates who wish to continue their career or pursue a postgraduate degree.
The activity of Eduardo Müller, in charge of the field of “temporary and housing rental” of triptych properties, is oriented towards this segment for more than 40 years.
The neighborhood near the faculties is the most sought after
“The areas most sought after by this segment are clearly those that are closest to the faculties, For example, in the realm of medicine and economics, the whole region of Palermo, Recoleta, Congreso, Vance and Abasto. There is also interest in the courts and the city area because of the changes taking place in this case,” says Mueller.
According to the study “Best Student Cities 2023” – Best Cities for Students 2023 – conducted by British consulting firm “QS”, Buenos Aires ranks 23rd on the list, the best ranked in Latin America, London is leading the list. Among other aspects, the survey assesses security, if the cost of living suitable and provides employment opportunities.
The depreciation of the peso has now been added to the prestige and gratuity of Argentine universities.
From his own experience, Muller details the origins of the students who settled in Buenos Aires. “The largest flows are from Brazil, followed by Colombia, Ecuador, Chile, Venezuela, Peru and Bolivia.”
exchange rate attractiveness
Puts solid numbers on foreign student arrivals in the country mobilized by Mueller an exchange rate Which is very convenient: “Studying at a college in Rio de Janeiro, for example, Medicine costs a student 9,500 reais per month, something like $450,000. For 25% of that amount, he settles in Argentina And you can pay for your room and board and college for free. It’s actually very beneficial.”
In the case of Colombia The situation is very similar. According to information handled by Müller, the 25% “cost” for Brazilians rises to 35% in the case of Colombians”, which remains very attractive.
But the move isn’t just for people who are doing their regular studies, Mueller highlights. Interest of receiving professionals coming to Buenos Aires in search of a postgraduate degree.
Temporary rental returns now range between 0.35% and 0.40% per month, averaging 4.8% per year
Muller gives as an example what happens Ecuador Where the economy is in dollars: “For Ecuadorians, a master’s degree in medicine costs about US$60,000 for four years. If the professional settles here and can enter UBA, it is not only free, but a certain In the moment he starts charging for his work”.
Temporary rental profitability is 4.8% p.a.
Looking at the current scenario, many owners of apartments ready for the rental market are beginning to redefine their properties. To guide them in this type of motion as they should be fully equipped.
As per current market prices, the value of an apartment with all services is Between $55,000 and $70,000 per month It becomes more expensive in case of buildings with more facilities $10,000 moreBut Muller clarifies that this is only for a very limited premium segment.
In the case of those looking for more comfort, 2 rooms, priced between $80,000 and $100,000. are between and 3 main rooms or more range from $100,000 to 120,000 pesos.
about cost effectiveness Mueller explains to owners: “The best time for temporary rentals with respect to investment gains was 2010, when rents fluctuated at 1% of the property’s value. It used to decrease by 0.25% then and now It fluctuates between 0. , 35% and 0.40% per month An average of 4.8% per year.