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The rental crisis worsened throughout the country: The doubts of owners and tenants waiting for Milei to repeal the law - INFOBAE
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La crisis de los alquileres se agudizó en todo el país: las dudas de dueños e inquilinos a la espera de que Milei derogue la ley
Se registran alzas del 180% interanual en los precios, escasez de propuestas en pesos y predominio de la informalidad
www.infobae.com
There are increases of 180% year-on-year in prices, a shortage of proposals in pesos and the predominance of informality
By José Luis Cieri
In their hands, a couple holds a miniature house, reflecting the current challenges in renting under the new law. Captures the essence of housing in times of high inflation (Illustrative Image Infobae)
With an increase in year-on-year prices of more than 180% and an unprecedented shortage of properties to rent in pesos (it is estimated that in one year the supply was reduced by 50% in all places), the rental crisis remains latent and generates a lot of concern.
The Argentine Real Estate Chamber (CIA) and other entities urgently requested a hearing from the Government to address the critical rental situation. The current Rental Law presents technical deficiencies that require attention, directing it towards public policies that encourage investment and reactivate a sector also affected by the country's economic situation.
This request arises after the statements of Manuel Adorni, presidential spokesperson, who mentioned yesterday in a conference press release that the repeal of the law is being evaluated. Iván Ginevra, president of the CIA, told Infobae that they will continue to request representatives the political will to address this problem. “We propose the creation of a Rental Board that allows all actors involved to contribute with solutions,” he said.
Since the inauguration of the president Javier Milei, the panorama in the rental market has not experienced significant changes, despite his statements about the intention to repeal the current regulations. “The situation got worse. Given the announcements, owners and tenants are waiting for the economic conditions that will guide their rental decisions,” said Emilio Caravaca Pazos, president of the the Real Estate Federation of the Argentine Republic (FIRA).
Regarding informality, there is an increase in agreements between owners and tenants to extend contracts and face the current uncertainty. In this context, contracts are sought to be extended due to the lack of supply and reluctance to make medium and long-term commitments.
Very few contracts were made through Casa Propia adjustment (coefficient used to update prices semi-annually) in the interior. “At the end of the first semester (next May) of the new contracts with the latest modification of the law, it will be possible to carry out a more precise analysis to determine if it was effective or unfavorable for both parties,” said Caravaca Pazos.
In Resistencia, capital of Chaco, the housing offer is presented with 2-room apartments at an average cost of $100,000 per month, while those with 3 rooms are in the range of $170,000; three-room houses range between $200,000 and $250,000
Buenos Aires
In La Plata, Mar del Plata, Junín, Bahía Blanca and other prominent cities in the province of Buenos Aires, the shortage of properties persists, maintaining a constantly rising price trend.Mirta Líbera, president of the Real Estate Chamber of the Province of Buenos Aires, stressed that no changes have been perceived since Milei proposed repealing the law. “The last modification further discouraged owners from allocating their properties to traditional rentals. According to her own research, the number of agreements made through Casa Propia adjustment and in the long term is minimal,” she assured.
In La Plata, as in other Buenos Aires cities, the shortage of units for housing rentals predominates.
In this waiting context, contract extensions for 6 months are observed with price updates that exceed 170%, exceeding the inflation rate.
Líbera added that the latest legal reform (known as Law 27,337) generated an increase in agreements outside the regulations, dispensing with the intermediation of real estate agencies.
In La Plata the few 2-room apartments are available for $150,000 on average and 3-room apartments for $200,000, while a 3-room house with a garage and well-located ranges for $320,000 per month.
Cordoba
In the capital of Córdoba, demand is high, especially among university students who will move next year. Some values were maintained, while category properties with amenities experienced an increase of 10% since Milei took over.“The owners prefer to wait for new measures or the repeal of the law before making decisions about new contracts. We need a prompt response as a sector, but we understand the government's priorities when taking office," said Virginia Manzotti, owner of the homonymous real estate company and president of the Federal Council of Real Estate Colleges (Cofeci).
Although real estate agencies must formalize contracts in legal tender, informality prospered with agreements for less than 3 years and direct adjustments between owners and tenants.
In Córdoba capital, the price to rent a 3-room apartment varies from $390,000 to $450,000 depending on area, age and amenities (Photo: Turismo de Córdoba)
Manzotti stressed: “That is why we insist with our clients on the legal inconveniences that non-compliance with the law can cause.”
Two-room apartments in sought-after areas, considering age and amenities, range between $250,000 and $350,000 per month. The three-room houses with garage start from $380,000 to $500,000, depending on the area, prioritizing security, transportation and proximity to educational institutions.
Santa Fe
The substantial change that Rosario specialists perceive did not occur with Milei's victory, but a few weeks before, when he expressed in statements to the media that the Rental Law should be repealedGabriela Ortíz de Urbina, president of the College of Real Estate Brokers of Rosario (Cocir), pointed out that “from that moment on, a withdrawal of properties from the market was evident. Tenants seek to quickly find out the update values and owners adopt a cautious stance, after having rented at amounts that do not reflect reality.”
The absence of reference values led to increasing levels of informality. More and more people seek to avoid regulations by dispensing with the services of the real estate broker, thus assuming the associated risks.
In Rosario, most real estate transactions are not governed by the dollar
“In Rosario, unlike CABA, we are not dollarized. Only a minimum percentage of the market, such as premium homes in private neighborhoods or some developments with amenities, follows this trend,” Ortíz de Urbina clarified.
As for values, 2-room apartments range between $150,000 and $200,000 per month, while 3-room apartments range between $180,000 and $200,000, not including garage. The variations in houses depend on the neighborhood, for example, in Fisherton, a house without a pool and with some land can be found for around $300,000, while in the southern area, one with similar characteristics can be located at 50% of that value.
Tucuman
The rental situation in San Miguel de Tucumán is on pause, affecting the completion of new contracts.“Informality became common due to the absence of clear benefits for landlords and tenants in the current law. The will of the parties prevails, giving rise to agreements outside the current regulations. Although real estate professionals insist on working within the law to provide legal security, the regulations are generally not respected,” he highlighted to Alejandro Aybar, from Aybar Propiedades. and member of the College of Real Estate Brokers of Tucumán.
Area known as Barrio Norte in San Miguel de Tucumán
In the capital of Tucumán, the values of housing rentals have not yet been dollarized, remaining in pesos, with the exception of some particular cases in the city of Yerba Buena. Contracts made outside the regulations incorporate quarterly and quarterly increases.
Aybar expanded: “The Casa Propia index did not demonstrate effectiveness in Tucumán, since it is below the levels of price increases and inflation, which raises questions about its operation and usefulness.”
A 2-room apartment in San Miguel de Tucumán is in the range of $80,000 to $90,000 per month. Those with 3 rooms start at $150,000, while houses in Yerba Buena start at $230,000, covering different options with or without a garage.
South
In Ushuaia, rents suffered a small variation in their values, accompanying the dragging inflation rates of recent days. Lately, short-term agreements have been advanced there while waiting for the repeal of the law proposed by the new government.Sergio Arroquy, president of the Supervisory Commission of the Professional College of Auctioneers, Appraisers and/or Brokers of Tierra del Fuego, said that “the price increases for new contracts in pesos are made with an increase of 15% more these days compared to 20 days ago.”
A 3-room apartment ranges from $450,000 on the outskirts and $550,000 closer to the center of Ushuaia. On the other hand, in 3-room houses with a patio and open space the values start from $750,000, always depending on the location and construction characteristics.
A 3-room apartment on the outskirts of Ushuaia costs $450,000 per month
This week in the Fuegian province an attempt was made to legislate on housing, seeking to suspend commercial authorizations for temporary rentals.
“A permanent rental registry was proposed with limits on values, not allowing them to exceed 35% of the tenant's income, with fines for owners and real estate agencies in case of violating this limit. It was also proposed to double the Gross Income tax for 4 and 5 star hotels. However, the norm did not achieve the necessary approval,” Arroquy concluded.
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