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Post DNU, the rental supply in CABA increased 9% year-on-year: what deadlines and update methods are proposed to attract tenants - Infobae
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www.infobae.com
January 08, 2024
One week after the entry into force of the DNU that repealed the Rental Law, more homes are entering the rental market in different Buenos Aires neighborhoods. Contractual variants arising from deregulation.
Renting is complex. It is expected that supply will continue to grow and that prices may stabilize a little. For tenants the situation is currently challenging (Illustrative Image Infobae)
From the changes arising from the president's DNU 70 Javier Milei, homeowners in CABA began to react by increasing the supply of units. According to estimates, in the first week of the year, portals experienced an approximate growth of 9% year-on-year.
On specific platforms, the housing supply, which includes both traditional and temporary rentals, was positioned between 6,500 and 6,700 units (at the beginning of the week it was at 5,200).
Soledad Balayan, from Maure Inmobiliaria, confirmed to Infobae these data: “According to my records, when comparing the first week of January 2024 with the same week in 2023, an increase of 9% is observed in apartment rental advertisements in CABA. Of course, within that offer, there is variety in monetary conditions, prices and terms. The market will find its balance if they allow it.”
The regulatory changes directly impacted the offer and the perception of the owners. Despite the persistence of increases (in CABA prices rose 260% year-on-year) and marketers' expectations about the continuation of this trend until inflation calms down, real estate companies maintain that the imminent modifications, with the consequent expansion of supply, could contribute to stabilizing prices in the medium term.
Iván Ginevra, president of the Argentine Real Estate Chamber, expressed that although they do not yet have official numbers, “the increase in the supply of properties for rent through portals is notable.” .
To this, he said, "we must add that the owners who already had properties on offer today are also willing to give up the rental value, because now they can negotiate the rest of the contractual conditions according to their particular interest and not subject to the guidelines determined by the previous law.”
“Currently, each contract will be specifically tailored to the negotiations between tenants and owners, adapting to their particular needs. This new approach provides greater flexibility and customization in agreements, allowing a more precise adaptation to the individual circumstances of both parties involved,” Ginevra explained.
With the DNU, the term that real estate agencies usually propose is a maximum duration of 24 months and adjustments every four months.
“Currently, each contract will be specifically tailored to the negotiations between tenants and owners, adapting to their particular needs. This new approach provides greater flexibility and customization in agreements, allowing a more precise adaptation to the individual circumstances of both parties involved,” Ginevra explained.
With the DNU, the term that real estate agencies usually propose is a maximum duration of 24 months and adjustments every four months.
In the new contractual dynamic, each agreement will be unique. The Argentine Real Estate Chamber foresees the creation of model contracts with standard market clauses, provided to partners along with sessions through the Real Estate Training Institute to facilitate the implementation of the new provisions (Photo: Getty)
Diego Frangella, president of the Buenos Aires Real Estate Professional Association, highlighted that “the offer experienced a gradual growth in the publication of properties. Although values have risen slightly since the entry into force of the DNU, the greater availability of properties encourages more flexible negotiations in closing operations. Over time, as more supply continues to enter the market, prices are expected to adjust.”
Specialists argued that they notice that in the new publications, the same listing a couple of months ago also included furnished and equipped apartments, with prices in dollars. It is not easy to determine how many there are in pesos and how many are for temporary agreements.
Balayan estimated: “During January, while the DNU is in force, several apartments will be incorporated for long-term rental, up to 2 years, with values expressed in pesos and indexed by inflation. It will be crucial to observe how demand responds to this renewed offer adjusted to the conditions established by the new regulations.”
Despite the diversity in contracts, rental values remain high, even higher than before the repeal of the law. Although there is no perceived decrease in the starting point, it is explained that rents are adjusting in accordance with inflation.
“The rental process still requires a month's advance, a deposit and the presentation of a guarantee, whether owner or surety insurance. It is important to note that many homeowners suggest quarterly or semiannual adjustments using the Consumer Price Index (CPI) or the Argentine Chamber of Construction Index (CAC, more common among home buyers and used to adjust monthly payments). ”Frangella recommended.
And in Colegiales today there are about 45 properties offered, when 30 days ago there were barely 15. For a two-room apartment on Vidal in 2000, $350,000 a month is requested.
Tenant organizations warn that rental costs are at exorbitant levels, while entry requirements are practically unattainable and purchasing power is not keeping pace.
Ludmila Victoria Mazzoni Amado, from the Mazzoni & Asoc., who advises tenants, said that “these days one of the frequent queries is about the validity of the contracts signed until the announcement of the DNU. It is crucial that tenants understand that those concluded until 12/29 will continue to be governed by the corresponding Rental Law, without the need to make modifications. In some cases, derived from this situation, tenants were urged to leave the home or pay a voluntary increase outside the agreed terms.”
It is recommended to review the contract, avoiding paying unagreed amounts and not leaving the home. It should be noted that no request via WhatsApp can force eviction, nor can the supply of services be interrupted.
“We received more than 300 inquiries in 10 days, reflecting the uncertainty and difficulty in finding homes at affordable prices. A shocking situation, shared with permission, was that of a mother with a 1-year-old baby and her husband with an oncological disease, desperately requesting help. Congress and the Supreme Court of Justice of the Nation have not yet ruled on the validity or invalidity of the DNU, which means that everything that is happening is not definitive. Staying informed is essential in this context,” concluded Mazzoni Amado.
www.buysellba.com
Source:
Post DNU la oferta de alquileres en CABA aumentó 9% interanual: qué plazos y métodos de actualización se proponen para captar inquilinos
A una semana de la entrada en vigor del DNU que derogó la Ley de Alquileres, más viviendas ingresan al mercado de alquiler en distintos barrios porteños. Variantes contractuales que surgen de la desregulación
www.infobae.com
January 08, 2024
One week after the entry into force of the DNU that repealed the Rental Law, more homes are entering the rental market in different Buenos Aires neighborhoods. Contractual variants arising from deregulation.
Renting is complex. It is expected that supply will continue to grow and that prices may stabilize a little. For tenants the situation is currently challenging (Illustrative Image Infobae)
From the changes arising from the president's DNU 70 Javier Milei, homeowners in CABA began to react by increasing the supply of units. According to estimates, in the first week of the year, portals experienced an approximate growth of 9% year-on-year.
On specific platforms, the housing supply, which includes both traditional and temporary rentals, was positioned between 6,500 and 6,700 units (at the beginning of the week it was at 5,200).
Soledad Balayan, from Maure Inmobiliaria, confirmed to Infobae these data: “According to my records, when comparing the first week of January 2024 with the same week in 2023, an increase of 9% is observed in apartment rental advertisements in CABA. Of course, within that offer, there is variety in monetary conditions, prices and terms. The market will find its balance if they allow it.”
The regulatory changes directly impacted the offer and the perception of the owners. Despite the persistence of increases (in CABA prices rose 260% year-on-year) and marketers' expectations about the continuation of this trend until inflation calms down, real estate companies maintain that the imminent modifications, with the consequent expansion of supply, could contribute to stabilizing prices in the medium term.
Iván Ginevra, president of the Argentine Real Estate Chamber, expressed that although they do not yet have official numbers, “the increase in the supply of properties for rent through portals is notable.” .
To this, he said, "we must add that the owners who already had properties on offer today are also willing to give up the rental value, because now they can negotiate the rest of the contractual conditions according to their particular interest and not subject to the guidelines determined by the previous law.”
Average prices in CABA concluded the year showing a significant increase. Currently, the vast majority of studio apartments are offered for more than $210,000 per month, without including expenses.
Adjustment and update period
What is notable in the current situation is that all contracts will be different, marking a change compared to previous practice, where they were regulated by the repealed law.“Currently, each contract will be specifically tailored to the negotiations between tenants and owners, adapting to their particular needs. This new approach provides greater flexibility and customization in agreements, allowing a more precise adaptation to the individual circumstances of both parties involved,” Ginevra explained.
With the DNU, the term that real estate agencies usually propose is a maximum duration of 24 months and adjustments every four months.
Average prices in CABA concluded the year showing a significant increase. Currently, the vast majority of studio apartments are offered for more than $210,000 per month, without including expenses.
Adjustment and update period
What is notable in the current situation is that all contracts will be different, marking a change compared to previous practice, where they were regulated by the repealed law.“Currently, each contract will be specifically tailored to the negotiations between tenants and owners, adapting to their particular needs. This new approach provides greater flexibility and customization in agreements, allowing a more precise adaptation to the individual circumstances of both parties involved,” Ginevra explained.
With the DNU, the term that real estate agencies usually propose is a maximum duration of 24 months and adjustments every four months.
In the new contractual dynamic, each agreement will be unique. The Argentine Real Estate Chamber foresees the creation of model contracts with standard market clauses, provided to partners along with sessions through the Real Estate Training Institute to facilitate the implementation of the new provisions (Photo: Getty)
Diego Frangella, president of the Buenos Aires Real Estate Professional Association, highlighted that “the offer experienced a gradual growth in the publication of properties. Although values have risen slightly since the entry into force of the DNU, the greater availability of properties encourages more flexible negotiations in closing operations. Over time, as more supply continues to enter the market, prices are expected to adjust.”
Specialists argued that they notice that in the new publications, the same listing a couple of months ago also included furnished and equipped apartments, with prices in dollars. It is not easy to determine how many there are in pesos and how many are for temporary agreements.
Balayan estimated: “During January, while the DNU is in force, several apartments will be incorporated for long-term rental, up to 2 years, with values expressed in pesos and indexed by inflation. It will be crucial to observe how demand responds to this renewed offer adjusted to the conditions established by the new regulations.”
Despite the diversity in contracts, rental values remain high, even higher than before the repeal of the law. Although there is no perceived decrease in the starting point, it is explained that rents are adjusting in accordance with inflation.
“The rental process still requires a month's advance, a deposit and the presentation of a guarantee, whether owner or surety insurance. It is important to note that many homeowners suggest quarterly or semiannual adjustments using the Consumer Price Index (CPI) or the Argentine Chamber of Construction Index (CAC, more common among home buyers and used to adjust monthly payments). ”Frangella recommended.
Neighborhoods and tenants
These days units began to appear, for example in Villa del Parque. For a two-room apartment, up to $400,000 can be asked for on Tinogasta at 3100. Or in Monte Castro, where there was almost no offer, now there are some options for $300,000 or $370,000 a month in two rooms, such as in Miranda at 4600 and Allende at 2200. , respectively.And in Colegiales today there are about 45 properties offered, when 30 days ago there were barely 15. For a two-room apartment on Vidal in 2000, $350,000 a month is requested.
Tenant organizations warn that rental costs are at exorbitant levels, while entry requirements are practically unattainable and purchasing power is not keeping pace.
Ludmila Victoria Mazzoni Amado, from the Mazzoni & Asoc., who advises tenants, said that “these days one of the frequent queries is about the validity of the contracts signed until the announcement of the DNU. It is crucial that tenants understand that those concluded until 12/29 will continue to be governed by the corresponding Rental Law, without the need to make modifications. In some cases, derived from this situation, tenants were urged to leave the home or pay a voluntary increase outside the agreed terms.”
It is recommended to review the contract, avoiding paying unagreed amounts and not leaving the home. It should be noted that no request via WhatsApp can force eviction, nor can the supply of services be interrupted.
“We received more than 300 inquiries in 10 days, reflecting the uncertainty and difficulty in finding homes at affordable prices. A shocking situation, shared with permission, was that of a mother with a 1-year-old baby and her husband with an oncological disease, desperately requesting help. Congress and the Supreme Court of Justice of the Nation have not yet ruled on the validity or invalidity of the DNU, which means that everything that is happening is not definitive. Staying informed is essential in this context,” concluded Mazzoni Amado.
www.buysellba.com
