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Rental Law: It is no longer allowed to publish notices in dollars - Infobae
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www.infobae.com
October 18, 2023
By Jose Luis Cieri
One of the modifications to the regulations that have already come into force prohibits offering prices in foreign currency. Impact on the market and challenges for real estate platforms.
Access to housing through rental has become complicated in Argentina and the reform of the Rental Law only satisfies tenants, owners and real estate agents reject it (Illustrative image Infobae)
With the approval of the Chamber of Deputies last week and the modifications of the officialism in the Senate, the reform of the Rental Law has been promulgated by the Executive in record time. The new regulation has already come into effect for new rental contracts and provides that the publication of notices in dollars for traditional rental contracts is prohibited.
This regulatory change aims to protect tenants but does not satisfy everyone equally. While notices in dollars will continue to be a valid option for temporary contracts, traditional rentals require using the local currency.
Iván Ginevra , current president of the Argentine Real Estate Chamber, told Infobae that “the people who until today published in dollars are not going to offer their property in pesos, in any case they will take the property off the market. This reform of the regulations will only generate less supply and there will be more limitations on access to housing for those who do not have their own home.”
From now on, all new rental publications with traditional destinations must be made exclusively in pesos. Regarding the already active publications that are in dollars, users will be notified about the provisions of the Rent Law reform, with the suggestion to adapt their publications if appropriate.
From Mercado Libre Inmuebles, they confirmed to Infobae their intention to make adjustments to the platform to comply with the new regulation on housing rentals. From the platform, it was emphasized that, as intermediaries, they do not participate in the transaction nor can they determine the destination (housing or temporary) that each user intends to give to their property, and therefore, they cannot comment on the future of rentals in Dollars.
Despite concerns about the drop in supply in recent weeks, the platform has so far seen no notable changes in posts. They emphasize that it is too early to evaluate the modifications associated with the new law.
Starting today, traditional rental notices cannot be published in dollars: they can only be published in national currency (Photo: Getty)
Germán Gómez Picasso , from Reporte Inmobiliario, told Infobae that theoretically it was no longer allowed to publish in dollars before this reform, except for temporary rentals of up to three months. However, with the implementation of the Own House coefficient, which will update at a lower level than the Rental Contract Index (ICL), a greater shortage in supply is anticipated.
Currently, it appears that the market is in a state of waiting until after next Sunday's election.
Gómez Picasso added that the reform “does not satisfy the owners, which could deepen the decrease in supply in the market.”
Most of the publications with offers in dollars focused on some neighborhoods in the city of Buenos Aires such as Puerto Madero, Palermo or Belgrano with quotes starting from USD 650 per month, but the majority were for temporary or tourist agreements. Also in some closed neighborhoods of Greater Buenos Aires, but for houses with direct owner proposals, without real estate intermediation.
And in some areas of Córdoba, Salta, San Martín de los Andes, Mar del Plata, Rosario or Mendoza, among other large cities in the country, where prices there exceeded USD 500 per month and for agreements for more than a year, also without real estate intermediation.
Pablo Houghton, from Houghton Properties, explained to Infobae the importance of promoting supply and guaranteeing that expectations are favorable to encourage greater flow in the market.
“The Rental Law enacted in June 2020, on the other hand, has had the opposite effect. Its implementation generated uncertainty and resulted in a significant decrease in the supply of rental properties. This is because the measures focused only on tenants, such as the plaintiff, without taking into account the owners, who represent the supply. Consequently, these decisions have had a strong negative impact by not understanding the dynamics of the segment,” he said.
In the last 40 months, this regulation has driven the growth of the dollar supply. Unlike traditional rentals in pesos, where there are less than 400 apartments available in CABA, in temporary agreements in dollars there are more than 17,000 properties. This reflects a clear disparity in the market.
www.buysellba.com
Source:
Ley de Alquileres: ya no está permitido publicar avisos en dólares para contratos tradicionales
Una de las modificaciones de la normativa que ya entró en vigencia prohíbe ofrecer precios en moneda extranjera. Impacto en el mercado y desafíos para plataformas inmobiliarias
www.infobae.com
October 18, 2023
By Jose Luis Cieri
One of the modifications to the regulations that have already come into force prohibits offering prices in foreign currency. Impact on the market and challenges for real estate platforms.
Access to housing through rental has become complicated in Argentina and the reform of the Rental Law only satisfies tenants, owners and real estate agents reject it (Illustrative image Infobae)
With the approval of the Chamber of Deputies last week and the modifications of the officialism in the Senate, the reform of the Rental Law has been promulgated by the Executive in record time. The new regulation has already come into effect for new rental contracts and provides that the publication of notices in dollars for traditional rental contracts is prohibited.
This regulatory change aims to protect tenants but does not satisfy everyone equally. While notices in dollars will continue to be a valid option for temporary contracts, traditional rentals require using the local currency.
Iván Ginevra , current president of the Argentine Real Estate Chamber, told Infobae that “the people who until today published in dollars are not going to offer their property in pesos, in any case they will take the property off the market. This reform of the regulations will only generate less supply and there will be more limitations on access to housing for those who do not have their own home.”
Change of scenery
With the entry into force of the reform of the Rental Law, companies in the sector and specialized platforms are forced to adapt to these significant changes.From now on, all new rental publications with traditional destinations must be made exclusively in pesos. Regarding the already active publications that are in dollars, users will be notified about the provisions of the Rent Law reform, with the suggestion to adapt their publications if appropriate.
From Mercado Libre Inmuebles, they confirmed to Infobae their intention to make adjustments to the platform to comply with the new regulation on housing rentals. From the platform, it was emphasized that, as intermediaries, they do not participate in the transaction nor can they determine the destination (housing or temporary) that each user intends to give to their property, and therefore, they cannot comment on the future of rentals in Dollars.
Despite concerns about the drop in supply in recent weeks, the platform has so far seen no notable changes in posts. They emphasize that it is too early to evaluate the modifications associated with the new law.
Starting today, traditional rental notices cannot be published in dollars: they can only be published in national currency (Photo: Getty)
Germán Gómez Picasso , from Reporte Inmobiliario, told Infobae that theoretically it was no longer allowed to publish in dollars before this reform, except for temporary rentals of up to three months. However, with the implementation of the Own House coefficient, which will update at a lower level than the Rental Contract Index (ICL), a greater shortage in supply is anticipated.
Currently, it appears that the market is in a state of waiting until after next Sunday's election.
Gómez Picasso added that the reform “does not satisfy the owners, which could deepen the decrease in supply in the market.”
Most of the publications with offers in dollars focused on some neighborhoods in the city of Buenos Aires such as Puerto Madero, Palermo or Belgrano with quotes starting from USD 650 per month, but the majority were for temporary or tourist agreements. Also in some closed neighborhoods of Greater Buenos Aires, but for houses with direct owner proposals, without real estate intermediation.
And in some areas of Córdoba, Salta, San Martín de los Andes, Mar del Plata, Rosario or Mendoza, among other large cities in the country, where prices there exceeded USD 500 per month and for agreements for more than a year, also without real estate intermediation.
Self-regulation
Experts highlight that the rental market has the ability to regulate itself, based on both supply and demand as well as expectations and incentives, crucial elements in any economy.Pablo Houghton, from Houghton Properties, explained to Infobae the importance of promoting supply and guaranteeing that expectations are favorable to encourage greater flow in the market.
“The Rental Law enacted in June 2020, on the other hand, has had the opposite effect. Its implementation generated uncertainty and resulted in a significant decrease in the supply of rental properties. This is because the measures focused only on tenants, such as the plaintiff, without taking into account the owners, who represent the supply. Consequently, these decisions have had a strong negative impact by not understanding the dynamics of the segment,” he said.
In the last 40 months, this regulation has driven the growth of the dollar supply. Unlike traditional rentals in pesos, where there are less than 400 apartments available in CABA, in temporary agreements in dollars there are more than 17,000 properties. This reflects a clear disparity in the market.
www.buysellba.com
