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Rentals throughout the country: What was the impact of the change - Infobae
Source:
www.infobae.com
October 20, 2023
By José Luis Cieri
Achieving a rental contract in Argentina is a difficult mission after the law reform. The behavior is similar in all places in the country (Illustrative image Infobae)
With the entry into force of the modifications to the Rental Law, the Argentine real estate market faces significant challenges and changes. Three days after its implementation, sector chambers in the interior of the country expressed concern about a reduction in the supply of rental properties, which could result in an increase in prices in new contracts.
In addition, there were cases in which agreements that were about to be finalized were stopped, reflecting the confusion and ongoing adaptation to these legal transformations.
Virginia Manzotti , owner of the homonymous real estate company and president of the Federal Council of Real Estate Associations (Cofeci), told Infobae that “in the case of tenants, many have experienced difficulties in finding properties that meet their needs, while the owners remain in suspense, expectant of what will happen with the elections next Sunday. Javier Milei and Patricia Bullrich said that if they won they would repeal the current norm, and even Sergio Massa himself stated that each province would have to have its own regulations.
In the midst of a nationwide waiting period, rental prices rose between 5% and 10% in a few days.
In Córdoba capital there are few homes for rent
Currently, in Córdoba capital, the few available two-room apartments have a value between $150,000 and $170,000 per month. Three-room houses, between $230,000 and $270,000 in the Nueva Córdoba neighborhood, and three-room houses start at $320,000 per month, depending on location and amenities. Those with 4 rooms start at 350,000 pesos.
Diego Ferreyra, of Diego Ferreyra Bienes Raíces and treasurer of the College of Real Estate Brokers of Rosario (Cocir), commented to Infobae that “the law had a significant impact on the offer. Many owners, with the uncertainty of an inflationary environment, prefer to wait. Regarding new contracts with empty properties and new tenants, the minimum term of law is respected, including the new Casa Propia.”
In Rosario there are only 540 properties on location and in pesos
Currently, there are only 540 for rent and 45,000 for sale.
Cocir requested a report from the Economic Research Institute of the National University of Rosario (UNR) to evaluate the possible impact of the law's tax exemptions, although Ferreyra expressed skepticism about seeing immediate results in the short term. “Prices continue to rise due to the shortage of traditional rental properties,” she noted.
As a result, some who did not have an immediate urgency to rent their homes chose to withdraw their properties from the real estate offers to establish agreements directly with tenants. Those owners who depend on this source of income to supplement their monthly finances evaluated whether it was convenient or not, which led to the suspension of several contracts.
Eduardo Rosta, president of the Association of Public Real Estate Brokers of Mendoza, said that the offer was reduced significantly. “Of every 100 properties available, only two are destined for traditional rentals in local currency. Although as an entity we do not promote agreements outside the law, in the current economic and political context, our possibilities of reversing this situation are limited,” he stated.
To date, there were only 300 properties available for rent in the entire province of Cuyo.
In the capital of Mendoza there are 300 properties for rent
“Many owners have expressed their intention to wait for the results on Sunday and, ultimately, those of November in the event of a runoff, to make decisions regarding their rental properties starting next December,” Rosta noted.
A 3-room house in Mendoza capital exceeds $200,000 per month and if it has a garage it costs 20% more. A two-room apartment costs around $90,000 and a three-room apartment exceeds $130,000 per month.
The complaints are greater and the segment expects this to change drastically. “We hope that the new government repeals the regulations and makes a law that really makes sense,” said Alejandro Aybar, of Aybar Propiedades and member of the Association of Real Estate Brokers of Tucumán.
Intersection of Corrientes and Muñecas streets, in San Miguel de Tucumán
In San Miguel de Tucumán, rent for a 2-room apartment is between $70,000 and $100,000 depending on the area, and a 3-room apartment is between $80,000 and $140,000 per month. A 3-room house in Yerba Buena starts at $150,000 and a 4-room house starts at $200,000 per month.
“The only positive aspects of the reform are the tax exemptions for owners. Negative aspects are the adjustment period (given that in a context of high inflation, the indices that regulate prices are not convenient) and the three-year duration of the contract,” said Aybar.
Guillermo Rossi, president of the College of Auctioneers and Public Brokers of the Judicial Department of Mar del Plata, shared his concern: “If this continues we will not be able to offer more homes. Although the modification reinforces the idea that values should be expressed in pesos, the Casa Propia coefficient is lower than the ICL and does not compensate for monthly losses due to inflation, even with semiannual adjustments.
In the city, the supply is scarce and there are no three- and four-bedroom apartments. Studio apartment rentals start at $80,000, while two-bedroom rentals start at $110,000 per month.
The agreements that were made were short-term, combining temporary rentals and being carried out outside the law, without the intermediation of real estate companies.
One of the reasons that explain the high rental prices in Ushuaia is that the income of employees there is higher than that of workers in other areas of the country.
“Some owners who do not see temporary rental as viable are exploring the option of increasing prices before signing three-year contracts, while other owners are checking whether the law allows rental agreements of shorter duration, considering it one of the chosen alternatives,” said Sergio. Arroquy , president of the Supervisory Commission of the Professional College of Auctioneers, Appraisers and/or Brokers of Tierra del Fuego.
The supply of permanent rentals is at historically low levels in Ushuaia, and the rentals are the most expensive in Argentina.
The average prices for studio apartments range from $300,000, while those with two rooms vary between $350,000 and $380,000, and those with three rooms start at $420,000 per month.
“In the case of three-room houses, values start at $500,000, always depending on the location and characteristics of each property,” Arroquy concluded.
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Source:
Alquileres en todo el país: cuál fue el impacto de los cambios y por qué se dispararon los precios en pocos días
Las cámaras del sector expresaron inquietudes mientras esperan los resultados de las elecciones del domingo próximo. Hay subas en los costos y muchos acuerdos frenados
www.infobae.com
October 20, 2023
Chambers in the sector expressed concerns as they await the results of next Sunday's elections. There are increases in costs and many agreements are stopped
By José Luis Cieri
Achieving a rental contract in Argentina is a difficult mission after the law reform. The behavior is similar in all places in the country (Illustrative image Infobae)
With the entry into force of the modifications to the Rental Law, the Argentine real estate market faces significant challenges and changes. Three days after its implementation, sector chambers in the interior of the country expressed concern about a reduction in the supply of rental properties, which could result in an increase in prices in new contracts.
In addition, there were cases in which agreements that were about to be finalized were stopped, reflecting the confusion and ongoing adaptation to these legal transformations.
Virginia Manzotti , owner of the homonymous real estate company and president of the Federal Council of Real Estate Associations (Cofeci), told Infobae that “in the case of tenants, many have experienced difficulties in finding properties that meet their needs, while the owners remain in suspense, expectant of what will happen with the elections next Sunday. Javier Milei and Patricia Bullrich said that if they won they would repeal the current norm, and even Sergio Massa himself stated that each province would have to have its own regulations.
In the midst of a nationwide waiting period, rental prices rose between 5% and 10% in a few days.
In Cordoba
For a year now, the supply of properties for traditional rentals has decreased significantly, according to the analysis of the real estate statistics center of the province of Córdoba, with a reduction of 40 percent.Manzotti highlighted that the reform has positive aspects, such as the semi-annual update of contracts. However, he pointed out the Home Own coefficient in the new contracts as negative. “It may be unfavorable due to the economic situation, since its adjustment tends to be below inflation. This could discourage owners from offering their properties for residential rental,” he highlighted.
In Córdoba capital there are few homes for rent
Currently, in Córdoba capital, the few available two-room apartments have a value between $150,000 and $170,000 per month. Three-room houses, between $230,000 and $270,000 in the Nueva Córdoba neighborhood, and three-room houses start at $320,000 per month, depending on location and amenities. Those with 4 rooms start at 350,000 pesos.
What happens in Rosario
In the Rosario, the owners are analyzing not renewing the contracts once they expire.Diego Ferreyra, of Diego Ferreyra Bienes Raíces and treasurer of the College of Real Estate Brokers of Rosario (Cocir), commented to Infobae that “the law had a significant impact on the offer. Many owners, with the uncertainty of an inflationary environment, prefer to wait. Regarding new contracts with empty properties and new tenants, the minimum term of law is respected, including the new Casa Propia.”
In Rosario there are only 540 properties on location and in pesos
Currently, there are only 540 for rent and 45,000 for sale.
Cocir requested a report from the Economic Research Institute of the National University of Rosario (UNR) to evaluate the possible impact of the law's tax exemptions, although Ferreyra expressed skepticism about seeing immediate results in the short term. “Prices continue to rise due to the shortage of traditional rental properties,” she noted.
Cuyo focus
In the city of Mendoza, immediately after the approval of the reform, real estate agencies began to receive inquiries from owners interested in understanding how the new coefficient works.As a result, some who did not have an immediate urgency to rent their homes chose to withdraw their properties from the real estate offers to establish agreements directly with tenants. Those owners who depend on this source of income to supplement their monthly finances evaluated whether it was convenient or not, which led to the suspension of several contracts.
Eduardo Rosta, president of the Association of Public Real Estate Brokers of Mendoza, said that the offer was reduced significantly. “Of every 100 properties available, only two are destined for traditional rentals in local currency. Although as an entity we do not promote agreements outside the law, in the current economic and political context, our possibilities of reversing this situation are limited,” he stated.
To date, there were only 300 properties available for rent in the entire province of Cuyo.
In the capital of Mendoza there are 300 properties for rent
“Many owners have expressed their intention to wait for the results on Sunday and, ultimately, those of November in the event of a runoff, to make decisions regarding their rental properties starting next December,” Rosta noted.
A 3-room house in Mendoza capital exceeds $200,000 per month and if it has a garage it costs 20% more. A two-room apartment costs around $90,000 and a three-room apartment exceeds $130,000 per month.
Garden of the Republic
In San Miguel de Tucumán the supply was reduced by almost 30% in one week and price increases are already 150% year-on-year.The complaints are greater and the segment expects this to change drastically. “We hope that the new government repeals the regulations and makes a law that really makes sense,” said Alejandro Aybar, of Aybar Propiedades and member of the Association of Real Estate Brokers of Tucumán.
Intersection of Corrientes and Muñecas streets, in San Miguel de Tucumán
In San Miguel de Tucumán, rent for a 2-room apartment is between $70,000 and $100,000 depending on the area, and a 3-room apartment is between $80,000 and $140,000 per month. A 3-room house in Yerba Buena starts at $150,000 and a 4-room house starts at $200,000 per month.
“The only positive aspects of the reform are the tax exemptions for owners. Negative aspects are the adjustment period (given that in a context of high inflation, the indices that regulate prices are not convenient) and the three-year duration of the contract,” said Aybar.
In La Feliz
The situation in Mar del Plata reflects a similar perspective, with the changes having a negative impact.Guillermo Rossi, president of the College of Auctioneers and Public Brokers of the Judicial Department of Mar del Plata, shared his concern: “If this continues we will not be able to offer more homes. Although the modification reinforces the idea that values should be expressed in pesos, the Casa Propia coefficient is lower than the ICL and does not compensate for monthly losses due to inflation, even with semiannual adjustments.
In the city, the supply is scarce and there are no three- and four-bedroom apartments. Studio apartment rentals start at $80,000, while two-bedroom rentals start at $110,000 per month.
Patagonia
In the south, in the days prior to the consideration and subsequent approval of the modification of the regulations, traditional rentals were left on hold, awaiting the definition of the new rules.The agreements that were made were short-term, combining temporary rentals and being carried out outside the law, without the intermediation of real estate companies.
One of the reasons that explain the high rental prices in Ushuaia is that the income of employees there is higher than that of workers in other areas of the country.
“Some owners who do not see temporary rental as viable are exploring the option of increasing prices before signing three-year contracts, while other owners are checking whether the law allows rental agreements of shorter duration, considering it one of the chosen alternatives,” said Sergio. Arroquy , president of the Supervisory Commission of the Professional College of Auctioneers, Appraisers and/or Brokers of Tierra del Fuego.
The supply of permanent rentals is at historically low levels in Ushuaia, and the rentals are the most expensive in Argentina.
The average prices for studio apartments range from $300,000, while those with two rooms vary between $350,000 and $380,000, and those with three rooms start at $420,000 per month.
“In the case of three-room houses, values start at $500,000, always depending on the location and characteristics of each property,” Arroquy concluded.
www.buysellba.com
