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New Rental Law: The real estate chambers rejected the reform and warn that the shortage of supply will continue - Infobae
Source:
www.infobae.com
October 11, 2023
The changes applied to the current regulations in Congress were not well received by real estate market entities
By José Luis Cieri
After the sanction of the reform of the Rental Law where the official project won, experts maintain that the shortage of supply will deepen even more (NA Photo: Damián Dopacio)
The reform approved in the early hours of the morning in the Rental Law approved in June 2020 in the National Congress has raised tensions in the real estate market. The sectoral chambers expressed their discontent with the changes, alleging that they could aggravate supply shortages and price increases. While the reform aims to regulate rent through the Own House coefficient, reactions in the sector underline the need for a broader dialogue to find effective solutions in access to housing.
The discontent among the entities that represent registered professionals lies in the fact that they understand that the adjustment method approved in the lower house (as it came from the Senate, promoted by the ruling party) that eliminates the Rental Contract Index (ICL) harms more to the owners and thus there will be fewer properties for traditional rental and in pesos.
From the Federal Council of Real Estate Associations (Cofeci), they expressed their concern to Infobae , stating that: “Real estate brokers throughout the country have witnessed the irresponsibility of our legislators, whose majority opinion in the Senate, when approved in “The Chamber of Deputies only aggravates the already chaotic situation of tenants throughout the country, but it seems that this does not worry.”
In the sector, it is stated that some legislators want to make Argentines believe that those responsible for providing decent housing are the owners and "they are not responsible for the disaster they caused with the sanction of Law 27,551."
“Today the vacancy of rental homes in Argentina is technically 0%. If this continues like this, we Argentines will have to forget for several years about being able to access rental housing,” the office expands.
In particular, they point to the updating of contracts through the “Casa Propia” Index and propose that it will aggravate the crisis in the rental market, which is already considered the worst in its history. With less than 450 apartments available for rent in CABA and a scarce supply of three-room units, the Buenos Aires CPI considers that the application of this index, which tends to be below inflation, is unviable in the current economic context.
“Maintaining three-year contracts, along with these new regulations, is expected to increase the withdrawal of units from the market and raise prices, further harming tenants. Given that the main candidates for the Presidency have expressed their opposition to excessive regulation in the real estate market, the CPI of Buenos Aires calls on them to publicly express their commitment to repeal this new Law as one of the first measures of their mandates," he explained. the CPI. This approach, they argue, is necessary to avoid the damage that the rule could cause and to address the deep crisis in the rental market and its impacts on Argentine families.
There are neighborhoods like Monte Castro in CABA, where there are no traditional rental homes.
Alejandro Bennazar, former president of the Argentine Real Estate Chamber and current global president of the Institute of Real Estate Business, Innovation and Technology (Rebiti), told Infobae : “We do not know what will happen with the future national government; They are likely to repeal the law and enact a new one. Everything remains to be seen. In addition, there are candidates, such as Javier Milei, who, if elected, would eliminate ministries, including Territorial Development and Habitat, which regulates Casa Propia. In that case, what would happen?”
According to Real Estate Report, in the last two years, the rental offer in CABA has decreased by 63%, if compared to the period before the law, the situation is even more worrying, since until February 2020 there were between 7,500 and 9,000 properties available for residential rental in pesos. Currently, in neighborhoods such as Agronomía, Villa Santa Rita, Lugano, Villa Riachuelo, Nueva Pompeya, Parque Chas and Villa Real, there are practically no 1-bedroom apartments available for rent.
“The changes approved by the National Congress clearly demonstrate that our legislators live in a parallel universe that does not allow them to see the reality of ordinary people who only ask to be allowed to agree, the owners have empty properties paying maintenance costs and expenses and the tenants have nowhere to live,” the architect and Real Estate expert Oscar Puebla concluded to Infobae .
www.buysellba.com
Source:
Nueva ley de Alquileres: las cámaras inmobiliarias rechazaron la reforma y advierten que seguirá la escasez de la oferta
Los cambios aplicados a la actual normativa en el Congreso no fueron bien recibidos por las entidades del mercado de real estate
www.infobae.com
October 11, 2023
The changes applied to the current regulations in Congress were not well received by real estate market entities
By José Luis Cieri
After the sanction of the reform of the Rental Law where the official project won, experts maintain that the shortage of supply will deepen even more (NA Photo: Damián Dopacio)
The reform approved in the early hours of the morning in the Rental Law approved in June 2020 in the National Congress has raised tensions in the real estate market. The sectoral chambers expressed their discontent with the changes, alleging that they could aggravate supply shortages and price increases. While the reform aims to regulate rent through the Own House coefficient, reactions in the sector underline the need for a broader dialogue to find effective solutions in access to housing.
The discontent among the entities that represent registered professionals lies in the fact that they understand that the adjustment method approved in the lower house (as it came from the Senate, promoted by the ruling party) that eliminates the Rental Contract Index (ICL) harms more to the owners and thus there will be fewer properties for traditional rental and in pesos.
From the Federal Council of Real Estate Associations (Cofeci), they expressed their concern to Infobae , stating that: “Real estate brokers throughout the country have witnessed the irresponsibility of our legislators, whose majority opinion in the Senate, when approved in “The Chamber of Deputies only aggravates the already chaotic situation of tenants throughout the country, but it seems that this does not worry.”
In a statement they highlight the seriousness of the situation: “Students who cannot begin their studies due to the lack of housing in university cities, young people who are prevented from starting a new stage in their lives, and entire families without a place to go.” which to move. While Argentine politics looks for culprits, the only person responsible for this situation is Law 27,551, voted unanimously by the National Congress on June 11, 2020, added to uncontrolled inflation, the second highest in the world.
In the sector, it is stated that some legislators want to make Argentines believe that those responsible for providing decent housing are the owners and "they are not responsible for the disaster they caused with the sanction of Law 27,551."
“Today the vacancy of rental homes in Argentina is technically 0%. If this continues like this, we Argentines will have to forget for several years about being able to access rental housing,” the office expands.
From Cofeci, as from other entities, they insist that the only way out of the current situation is to bring back clear, reasonable and equitable rules of the game for both parties, both for landlords and tenants. “As we have already stated on repeated occasions, this is achieved by returning to the 24-month minimum legal term, with updates as the parties voluntarily agree and with tax incentives to encourage investment and the construction of new homes that are put into the rental market. to increase the supply that today is non-existent,” they reported.
Request to the presidential candidates
The Real Estate Professional Association (CPI), which represents the brokers of the City of Buenos Aires, has issued a strong statement rejecting the reform.In particular, they point to the updating of contracts through the “Casa Propia” Index and propose that it will aggravate the crisis in the rental market, which is already considered the worst in its history. With less than 450 apartments available for rent in CABA and a scarce supply of three-room units, the Buenos Aires CPI considers that the application of this index, which tends to be below inflation, is unviable in the current economic context.
“Maintaining three-year contracts, along with these new regulations, is expected to increase the withdrawal of units from the market and raise prices, further harming tenants. Given that the main candidates for the Presidency have expressed their opposition to excessive regulation in the real estate market, the CPI of Buenos Aires calls on them to publicly express their commitment to repeal this new Law as one of the first measures of their mandates," he explained. the CPI. This approach, they argue, is necessary to avoid the damage that the rule could cause and to address the deep crisis in the rental market and its impacts on Argentine families.
Uncertainty
In the real estate chambers, they highlight that the changes sanctioned this morning do not affect the contracts already signed or those who agree to new rentals until the new legislation is promulgated by the national Executive Branch.
There are neighborhoods like Monte Castro in CABA, where there are no traditional rental homes.
Alejandro Bennazar, former president of the Argentine Real Estate Chamber and current global president of the Institute of Real Estate Business, Innovation and Technology (Rebiti), told Infobae : “We do not know what will happen with the future national government; They are likely to repeal the law and enact a new one. Everything remains to be seen. In addition, there are candidates, such as Javier Milei, who, if elected, would eliminate ministries, including Territorial Development and Habitat, which regulates Casa Propia. In that case, what would happen?”
According to Real Estate Report, in the last two years, the rental offer in CABA has decreased by 63%, if compared to the period before the law, the situation is even more worrying, since until February 2020 there were between 7,500 and 9,000 properties available for residential rental in pesos. Currently, in neighborhoods such as Agronomía, Villa Santa Rita, Lugano, Villa Riachuelo, Nueva Pompeya, Parque Chas and Villa Real, there are practically no 1-bedroom apartments available for rent.
“The changes approved by the National Congress clearly demonstrate that our legislators live in a parallel universe that does not allow them to see the reality of ordinary people who only ask to be allowed to agree, the owners have empty properties paying maintenance costs and expenses and the tenants have nowhere to live,” the architect and Real Estate expert Oscar Puebla concluded to Infobae .
www.buysellba.com
