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Rental Law: The PRO asked that it remain repealed even if Milei's DNU is annulled - Infobae
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Ley de alquileres: el PRO pidió que siga derogada aunque se anule el DNU de Milei
El rechazo en el Senado del decreto 70 de 2023, de Desregulación de la Economía, genera el riesgo de que vuelva a regir una norma que tiene pocos amigos en el mercado inmobiliario. Legisladores del PRO, con un proyecto aparte, buscan derogarla para evitarlo
www.infobae.com
March 15, 2024
The rejection in the Senate of decree 70 of 2023, on the Deregulation of the Economy, generates the risk that a rule that has few friends in the real estate market will once again come into force. PRO legislators, with a separate project, seek to repeal it to avoid it
By José Luis Cieri
Access to housing through rental has been complex in Argentina for more than 3 years (Illustrative Image Infobae)
With Cristian Ritondo as president of the block and leading the initiative, PRO deputies presented this Friday a bill to support the repeal of the Rental Law. This action reflects the intention to maintain the provision of the Decree of Necessity and Urgency (DNU) 70/2023, which was rejected yesterday by the Senate , even if the key initiative of the Government of Javier Milei found the same fate in the Lower House.
“The Rental Law that was repealed with the DNU did not give the expected results, but rather made the situation worse. As of this rule, housing rental contracts are once again governed by the Civil and Commercial Code with the particularity that now the parties are free to make agreements,” said Ritondo.
The PRO deputy stated that the elimination of the old law was effective, since it has contributed to increasing the supply (in the city of Buenos Aires there are currently more than 12,000 apartments for rent and according to different consulting firms and companies in the sector the supply increased between 150% and 200% in just two months), reduce prices and provide greater freedom and stability in a market that was previously deteriorating, harming both owners and tenants.
He emphasized that those who oppose change cannot be allowed to once again undo the progress made “we cannot go back,” he said.
Cristian Ritondo as president of the PRO Deputies block together with other councilors presented a project so that the DNU remains in force
The bill has the support of deputies José Núñez, Alejandro Finocchiaro, Héctor Stefani, Sabrina Ajmechet, Martín Yeza, Daiana Fernández Molero, Florencia de Sensi, Ana Clara Romero, Silvana Giudici, Sergio Capozzi, Germana Figueroa Casas, Laura Rodríguez Machado, Sofía Brambilla, Verónica Razzini, Gerardo Milman, Martín Ardohain, Alejandro Bongiovanni, Karina Bachey, Marilú Quiroz and Patricia Vázquez, among others.
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The panorama until the end of the year showed a non-existent offer in many Buenos Aires neighborhoods and cities in the interior, such as Agronomía, Parque Patricios or Mataderos in CABA, and San Carlos de Bariloche, Junín, Neuquén and Paraná, among other locations.The effect of the DNU, which allowed deregulated agreements in contrast to the repealed regulations, led hundreds of owners who previously preferred to keep their properties empty or transferred to family or friends to reconsider their decision and use them again for rental housing.
Iván Ginevra, president of the Argentine Real Estate Chamber, expressed his concern about this to Infobae : “Although it is unlikely that the DNU will be revoked in Deputies, if this were to happen and its rejection was ratified, reinstate Law 27,337 (which reformed the previous one of 2020 last October) would have detrimental consequences. In less than a month, supply would decrease again to record levels and the few available properties would once again be published at exorbitant prices.”
If Law 27,337 is returned, contracts would again be made for a 3-year term with a semiannual adjustment through the Casa Propia index, a crucial indicator used in programs such as Créditos Casa Propia and Procrear II. This coefficient, presented for the first time in November 2021, is based on a formula that considers the lowest indicator between the average annual salary variation and the average inflation during the same period.
Entity statement
Several entities in the sector linked to the construction and urban development industry issued a statement expressing their concern about the immediate impact that the rejection of the DNU approved in the Senate may have on the residential rental market, just when this market has disappeared. normalizing in recent months.“Our position is to support the repeal of Law 27,551, which proved to be absolutely ineffective, until a new, superior law is agreed upon. This statement is made public so that the corresponding authorities take it into consideration when making decisions that affect access to housing for many Argentines,” the office says.
Among the institutions that adhere to the statement are the Business Chamber of Urban Developers (CEDU), the Association of Housing Entrepreneurs (AEV), the Central Society of Architects (SCA), the Center for Builders and Annexes of Mar del Plata ( CCyA), the Association of Housing Entrepreneurs of Santa Fé (AEV Santa Fé), the Construction SMEs Association of the Province of Buenos Aires (APYMECO), the National Confederation of Construction SMEs (CPC), the Federal Council of Real Estate Associations (COFECI), Argentine Real Estate Chamber (CIA), Unique Association of Real Estate Brokers of the City of Buenos Aires (CUCICBA) and Real Estate Federation of the Argentine Republic (FIRA), among others.
Prices and tenants
The analysis carried out by Reporte Inmobiliario shows that in the city of Buenos Aires, the prices of standard quality used apartments offered for rent have experienced a notable increase in the last period. According to the report, two-room apartments recorded an average increase of 341.4%, while three-room units showed an increase of 400.19% year-on-year.
Image that refers to the signing of a contract. At this time, free agreements are being agreed between parties, if the DNU falls, the Rent Law repealed at the end of the year will be reinstated (Photo: Freepik)
In February 2024, the average value of used two-room apartments throughout the city reached $278,433, while three-room units exceeded $381,000 per month.
However, it is important to keep in mind that these values correspond to standard quality units, and as noted in the Real Estate Report reports for more than three years, if you are looking for a unit in good condition, the prices usually greatly exceed these values. public offering averages.
The persistent use of the dollar for the publication of housing remains a reality (however, if Deputies support the rejection of the DNU, this practice will no longer be able to continue).
Organizations representing tenants advocate for the reinstatement of the Rental Law.
Natalia Ranzuglia , from the National Tenants Movement, emphasized the need to consider housing as a social good. She proposes designing public policies that avoid real estate concentration and, at the same time, offer compensation strategies for tenants.
“These measures should include rental terms of no less than three years to ensure stability, and price adjustments every six months to allow gradual adaptation to the new figures. However, the most important thing is to reinforce the idea that getting rich through renting housing properties should not be a politically acceptable practice. This would discourage the accumulation of properties for speculative purposes,” he concluded.
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