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Rentals: Contracts are stopped and they warn that prices could double in a month - El Cronista
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March 18, 2024
The phones exploded in the real estate agencies. Many owners left the contracts on standby until it is defined what will happen with the DNU already rejected in the Senate.
Rentals: contracts are stopped and they warn that prices could double in a month
By Belen Fernandez
Rents are once again in the eye of the storm. After the Senate rejected the DNU of President Javier Milei , the fear of a return to the previous Rental Law reached real estate companies.
Throughout the weekend the phones did not stop ringing with countless inquiries from owners and tenants. Many contracts were left on standby, others are seeking to speed up signatures and are already warning that if the decree falls, rental prices could double in just one month.
"If we go back to the previous regulations, the value of rentals could double in a month and return to the previous situation of practically non-existent supply," said Iván Ginevra, president of the Argentine Real Estate Chamber (CIA) . In the sector they assure that this will happen because supply will once again be reduced to historical levels and in the face of constant demand, values will skyrocket.
The truth is that, in the real estate sector, they are convinced that if the DNU falls, it would be a resounding setback for the rental market. It happens that in the last two months the supply of rental properties grew 160% , according to data from Zonaprop . And prices, for the first time, showed a slowdown in February, increasing only 3%, below inflation.
"There are many queries and many doubts. This scenario is never positive for the sector. We had been working very well, and very slowly the supply of rental properties was growing. Now we have to be attentive to answer doubts and advise our clients," he said Marta Liotto, owner of the real estate company that bears her name and former president of the Buenos Aires College of Real Estate Brokers ( Cucicba ).
Liotto acknowledged that many contracts were on standby today waiting for the scenario to become clearer.
Rush the signatures
The real estate agencies consulted stated that some owners decide to rush the signatures due to fear that the Rental Law will come into force again."Today the DNU continues to run, that is why we recommend that the owners sign the contracts today, as updates can be made freely," added Diego Cazes, general director of LJ Ramos.
The businessman acknowledged that throughout Monday there were many inquiries and calls for fear that the Rental Law would come into force again. "Today we are making contracts for 24 months and with bimonthly updates. In our case, many rush the decision to close the rental for fear of what may happen in Deputies," he concluded.
In that sense, Jorge Toselli from JT Inmobiliaria assured that inquiries increased throughout the day. But, against all forecasts, more contracts were signed than expected.
The rental supply grew 160% in two months
" During Monday we made two contracts. The real estate company continued to operate in transactions in pesos, updates every two months and with increases based on the CPI. We have faith that in Deputies the rejection of the DNU will not advance and we can continue working, almost, with normality," concluded the businessman.
Market warnings
Through a statement, the CIA warned that if the DNU is repealed, the impact on the rental market would be resounding. "We consider that the result of going back to the regulations prior to the sanction of the DNU would be an abrupt restriction of supply that would result in enormous harm to society as a whole ."He also added that "it is worth clarifying that since the sanction of the last DNU in December 2023, the supply of rental properties has doubled and values have increased well below inflation, thus benefiting millions of tenants thanks to the freedom of contracting."
Today, renting a two-room apartment in the City of Buenos Aires costs $417,000 per month . That is to say , at least two minimum salaries - $202,000 - are needed for a rental.
"Prices had been experiencing a slowdown. But this new news calls into question the decline in values. The rental scenario is becoming complicated again," Liotto concluded.
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