Owners choose to rent instead of selling

Due to the great uncertainty the country and the world are going through, the owners of properties are not too sure about what to do with them. On the one hand, construction is stopped, together with the sale of properties. Moreover, the foreign exchange prohibitions have affected and made owners doubt when it comes to selling their properties. On the other hand, the price and expenses of having an empty property are not good in times of uncertainty and crisis.

All these factors have made the owners put the properties for rent. Instead of having a bad sale price, owners would rather rent and wait until the air is clear.

But that is not it. As we have mentioned, during the last few months, the rent supply has grown and the sale supply has decreased; so, a question arises, where did all the properties for rent come from? And the answer is quite simple:

During the last few years, Argentina has been living a construction “boom” and many people that didn't trust the bank to put their money, decided to invest in property. During the end of 2011 and beginning of 2012, many building constructions were completed, so they can now be put on sale. So, those owners of this recently finished properties that where thinking of putting them on sale, now prefer to put them for rent.

Moreover, many people usually rented their properties to foreign tourists, and now they also offer to rent for longer periods for citizens. This is because the tourism has begun to decrease a bit, due to the world economic crisis.

So, as it can be seen, owners will continue to put their properties for rent rather than to sell them at a low price, until the situation and the uncertainty is cleared. Thus, the rent supply will continue to increase, or at least will remain high for some time.