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Rentals: The repeal of the law generated a rapid increase in the supply of housing - Infobae
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Alquileres: la derogación de la ley generó una rápida suba en la oferta de viviendas
En algunos portales de CABA la cantidad de propuestas ya supera los 11.000 departamentos y se los encuentran en todos los barrios. Por qué ahora se desaceleró el precio inicial de los contratos
www.infobae.com
March 10, 2024
On some CABA portals the number of proposals already exceeds 11,000 apartments and they are found in all neighborhoods. Why the initial price of contracts has now slowed down
By José Luis Cieri
“Contractual freedom” fostered a more favorable scenario for both owners and tenants, by promoting greater capacity for negotiation in rents and adaptation to the particular circumstances of each party (Illustrative Image Infobae)
The repeal of the Rental Law generates a gradual expansion of the offer that increases week after week and in some specialized portals more than 11,000 apartments are already offered for rent in different neighborhoods of the city of Buenos Aires.
The new regulatory scheme brought a favorable response from the owners to the possibility of setting contractual terms and updates in accordance with the current situation, replacing the annual update provided for in the repealed law.
Mariano García Malbrán , from the Chamber of Real Estate Services Companies (CAMESI), told Infobae that in addition to the effect of this change, “the profitability in dollars was once again attractive and the temporary market is oversupplied, which generated partial occupations and a decrease in the income of property owners.”
The DNU gave the parties freedom to agree, and therefore, supply and demand generated the return of thousands of properties to residential rental.
“In my case, I returned to the market with two properties that had been empty since the enactment of the Rental Law, since the second half of 2020,” confirmed Germán Matienzo , a member of the United Owners group of Argentina.
Absolute freedom and expansion
Since the implementation of the DNU in CABA, the supply of properties registered record growth in just two months. Last November, the number of available properties had reached its lowest level, with fewer than 500 units valued in pesos.Enrique Abatti , specialist in real estate law and president of the Chamber of Property Owners of the Argentine Republic, highlighted the notable increase in activity caused by this decree: “It established absolute freedom in negotiations between owners and tenants, allowing personalized agreements to be reached, a modality that contrasts with the limitations imposed by previous legislation.”
Within the scheme of new contracts, another relevant aspect is the elimination of the minimum legal term for rentals. Also highlighted is the free negotiation of other crucial aspects of the contract, such as the value and terms of its update.
“Under the protection of the DNU, rental agreements gained flexibility and adaptability. In particular, in our study, contracts are being drafted with adjustment indices based on the INDEC Consumer Price Index (CPI), applied quarterly or, in exceptional situations, quarterly. On a minority basis, some contracts are adjusted by salary index, especially when there is a direct link between the tenant's work activity and the amount of the rent,” Abatti added.
Declining values
In real estate agencies there are no waiting lists, something common between 2022 and 2023, they maintain from the market. They notice a transformation that seeks to balance supply and demand, offering better opportunities for those looking to rent.Furthermore, the variability in rental prices, with reductions of up to 20% in certain areas, indicates a market correction towards more favorable conditions for tenants.
Before the entry into force of Law 27,751 in July 2020, there was a constant supply of between 15,000 and 20,000 homes per month. However, this number was drastically reduced and even more so with Law 27,737 (which reformed the previous one), briefly in force between October and December 2023 (which closed the year with zero supply in neighborhoods such as Agronomía and Parque Patricios).
Enrique Abatti (h.), member of the Chamber of Property Owners of the Argentine Republic, commented that “this increase in supply is causing a slowdown in the starting prices of rentals. The ability for tenants to negotiate and pay more than a month in advance, an option previously prohibited, introduced a new dynamic in the market that benefits both owners and tenants. “Flexibility in advance payments arises in response to the inflationary context, allowing tenants to take advantage of significant financial resources to negotiate more favorable conditions.”
Two-room apartments are among the most in demand in CABA
This change promotes a more equitable negotiation environment in accordance with the vision of property owners, where the tenant can select and agree on terms that are most appropriate to their possibilities.
García Malbrán also confirmed that the offer rose 189% from December to today, “which generated competition in terms of price, location and contractual conditions. Although the premium apartments continue to maintain high values, in general prices are stabilizing and several operations are being closed in dollars.”
In CABA, the most popular neighborhoods for rent are Palermo, Belgrano, Caballito, Parque Patricios, Puerto Madero and San Telmo.
Defense at 1000, in front of Plaza Dorrego, in San Telmo. This neighborhood is among the most sought after to rent in CABA
“Having a greater supply benefits tenants, since they have more options when looking for a place to live and can negotiate better conditions. However, it is important that owners are aware of the competition and are willing to adjust their prices to be able to rent their properties more quickly and effectively,” said Matienzo.
Flexibility became a central element to establish agreements that are fair for both tenants and owners, Matienzo explained: “It is impossible to make a general rule as the repealed law attempted, because the needs and conditions vary significantly from one individual to another, not A tenant in Puerto Madero is the same as one in La Matanza. This differentiation suggests that customizing contracts can offer more equitable solutions.”
Personalized clauses allow, for example, those owners with plans to sell the home in the short term to establish shorter contracts, as long as they find a tenant who accepts this mechanism.
“From our perspective, a 2-year contract is usually most appropriate, although this may vary depending on individual circumstances. We cannot generalize, there will be people who have the idea of selling and disposing of their assets in a shorter period of time,” Matienzo concluded.
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