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DNU effect: Which provinces are leading the increase in the supply of rental units and which are the furthest behind - Infobae
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Efecto DNU: qué provincias lideran el aumento de la oferta de unidades en alquiler y cuáles son las más rezagadas
Tras la derogación de la Ley de Alquileres, las distintas plazas tuvieron reacciones dispares, pero en general creció el número de unidades ofrecidas. Además, aunque la inflación impacta en los precios, se observa una leve desaceleración respecto del momento inicial
www.infobae.com
January 29, 2024
After the repeal of the Rental Law, the different places had different reactions, but in general the number of units offered grew. Furthermore, although inflation impacts prices, a slight slowdown is observed compared to the initial moment.
By José Luis Cieri
Handing over the keys marks the beginning in an empty apartment ready to move into. A symbol that had become complicated and now, even with high prices, the rental offer is beginning to react as something positive (Illustrative Image Infobae)
Within the framework of the repeal of the Rental Law ordered through the Decree of Necessity and Urgency (DNU 70) by the Government, greater dynamism is observed in the rental market in the provinces. The regulatory change led to a progressive increase in the housing supply and marked a new phase in the dynamics of the sector. Supply experienced year-on-year growth of 36% on average, reflecting the significant impact of the new measures on the real estate market.
According to a private analysis, 75% of companies affiliated with the Real Estate Federation of the Argentine Republic (FIRA) confirmed an increase in supply since the repeal of the Rental Law. This measure encouraged owners to reintegrate into the housing rental market.
Different speeds
Although a notable growth in the supply of rental housing is evident in most jurisdictions, the percentages of increase are varied.Ivan Orozco , from the Public College of Real Estate Brokers of San Juan and FIRA statistics coordinator, informed Infobae that when discriminating by provinces, “Tucumán leads the expansion of the property supply with 51%, followed by Mendoza (41% ) and Salta (39%). With lower percentages, there are Corrientes with 22%, Chaco with 27% and Chubut with 28 percent.”
The work also confirmed that of the new contracts signed in the interior from December 29 to date, 69.6% were for a duration of 24 months, and 15.3% were for twelve months and 15. The remaining 1% was for other terms of less than one year.
Source: Real Estate Federation of the Argentine Republic (FIRA)
Emilio Caravaca Pazos , president of FIRA, highlighted the importance of ensuring mutual understanding of the agreed conditions for the rental during the established period. This covers aspects such as updated indices, which are publicly known and available on various official websites.”
Statistics indicate that the non-conflicting points of previous laws are mostly incorporated into the contracts, including the relevance of the Lease Contract Index (ICL) as an updating alternative for housing contracts, as well as the distribution of responsibilities for expenses and expenses.
In San Miguel de Tucumán, capital of the Argentine Northwest province, it is one of the cities where the supply grew the most after the repeal of the Rental Law
“Today, more than ever, the fundamental role of professional real estate brokers is key in terms of their constant training and adaptation to current regulations. For this reason, from the Federation, it is advisable to go to professionals who can clearly express the intentions and agreements of the parties in the lease contracts,” added Caravaca Pazos.
Adjustment Methods and Coins
Despite the wide freedom to establish agreements after the implementation of the DNU, which even allows agreements with payments in cryptocurrencies, the analysis reveals that the most used method with 52.2% in the new agreements is through the Index of Contracts of Location (ICL).
Source: Real Estate Federation of the Argentine Republic (FIRA)
36.3% of the agreements were made through the Consumer Price Index (CPI), 2.2% through Casa Propia, and 0.9% through the Index of the Argentine Chamber of Construction (CAC).
“With 8.4% of contracts adjusted through other indices, the resolution of each agreement is adapted to the preferences of the parties involved. Some choose to adjust using economic variables or parameters known to both parties, such as selecting a specific product from the basic basket or construction materials. These particular agreements are established individually in each case,” said Orozco.
Source: Real Estate Federation of the Argentine Republic (FIRA)
Regarding the type of currency used in the new rental contracts, according to FIRA research, 97.1% of the agreements made inside were in pesos. Only 1.9% was carried out in dollars and 1% in other currencies.
Deadlines
Without a doubt, the supply experienced a notable increase, transforming what initially seemed like a perception into a statistically demonstrable reality.“In some cities, the impact is not as pronounced as in others, but in general they agree on the existence of a market with a greater supply of rental housing,” said Florencia Gonzalez Theyler , representative of the Real Estate Chamber of Rosario and deputy coordinator of statistics. of the FIRA.
The report also detailed that the most common adjustment period is the quarterly one, with 42.7%, followed by the quarterly update, which represents 29%, and the semiannual adjustment, with 23.2%. Other terms represented only 5.1% for new contracts signed.
Source: Real Estate Federation of the Argentine Republic (FIRA)
“The flexibility of the regulations generated the advantage of adapting the contractual conditions to the specific needs of each jurisdiction. Factors such as salary levels and economic activity vary considerably between different provinces. It was observed that the previous rigidity of the rule led to situations in which a property in a prominent neighborhood of CABA updated the rent in the same way as a property in towns in the interior of the provinces, despite their diametrically opposite realities. In response, flexible conditions and agreements are established between the parties that consider the specific context of each province and city,” Caravaca Pazos highlighted.
Prices and start
Currently, a two-room apartment in cities such as Córdoba capital, Mendoza, San Miguel de Tucumán, Rosario, La Plata or Mar del Plata, starts from $180,000 onwards, even in other cities such as Salta, Viedma, Santa Rosa, San Juan, for example. For example, these values start from $150,000 per month.
In San Juan capital, the supply also increased considerably from December 29 to date.
A three-room house (in good condition) with a garage starts at $250,000 and up in the various spaces inside. And if you don't have a place to store your car, it starts at $200,000 a month.
The price to set the starting point begins to slow down slightly, warn specialists in the different Albiceleste plazas.
González Theyler expanded: “We observed that, in general terms, the owners do not consider the coverage price that at the time generated the largest increases. This aspect is significant, since, in accordance with the regulations repealed by the DNU, rents were updated every 12 months or by an index significantly lower than that reflected by the parameters of the real economy, as is the case of Casa Propia. The possibility of agreeing on the shortest form of update helps to mitigate this situation, especially with regard to the initial values that were being recorded.”
The expansion of options is reflected in reduced pressure on initial values and in the availability of greater alternatives for tenants.
“The consultations are diverse, providing advice with the objective that both parties achieve a balance in benefits, promoting agreements based on good faith and, above all, creating long-term sustainable conditions,” concluded Emilio Caravaca Pazos.
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