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The Wall Street Journal praised the repeal of the rental law in Argentina - La Nacion Propiedades
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www.lanacion.com.ar
October 02, 2024
The Wall Street Journal praised the repeal of the rental law in Argentina
The US media analyzed how supply and demand changed after President Javier Milei's decision to repeal the rental law at the end of December 2023
The Wall Street Journal praised Milei for repealing the rental lawSeth Wenig - AP
The renowned American newspaper The Wall Street Journal , a specialist in economic and business issues, published an article describing the reality and changes experienced by real estate in Argentina . The article referred to the rental law as the “strictest contract control in the world” and, in turn, argued that the repeal of Javier Milei “only brought benefits.”
The visible result of the repeal , according to the newspaper article, is that the rental offer of properties in the city of Buenos Aires increased by more than 170% since the beginning of the year and also mentioned that Argentina is experiencing a real estate boom .
“While rents continue to rise in nominal terms, many tenants are getting better deals than ever, with the real price of rental properties when adjusted for inflation down 40% since last October,” Federico González Rouco, an Argentine economist at Empiria Consultores, told the WSJ .
The rental offer of properties in the city of Buenos Aires increased by more than 170% since the beginning of the yearIgnacio Sanchez
“Milei’s decision to undo rent control regulations resulted in one of the clearest victories of what he calls ‘ economic shock therapy ,’” detailed the article, which cited a graph that Soledad Balayan, director of Maure Inmobiliaria, has been using since 2012. The graph shows in a compelling way how the liberalization of the rental market through the DNU led owners to turn their properties into rentals. “In other words, they once again trusted the traditional rental alternative (beyond the temporary) as an investment tool,” Balayan reflected, adding that “ the supply of apartments for rent seems to have found a ceiling, now what is sought is a balance since there are still distortions in the market. As inflation slows down, it will be easier to reach that balance.”
Soledad Balayan's post on X about her appearance in The Wall Street Journal article
The publication also insisted that in Argentina , when the rental law was in force, there were a large number of empty apartments because the owners did not agree with the regulation that regulated them. “In 2022, there were about 200,000 empty properties in Buenos Aires, 45% more than in 2018, according to a report by Cedesu, a political group based in Buenos Aires that focuses on urban development. It was difficult to find an affordable apartment under the rent control law,” the American media detailed.
Finally, the WSJ included in the article the situation of Aldana Oliver, a woman who appeared on the cover of the article and who spent 18 months looking for an apartment to settle in so she could study dentistry in Buenos Aires.
Front page of the printed newspaper in which a section of the article about Argentina appears
The digital note of the cover story of The Wall Street Journal Capture
“There were very few places to rent and the ones available were very expensive,” Oliver said. After rent control was lifted, he quickly found a studio apartment for about $200 a month . “I found something really nice. And I got a good price,” he concluded.
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Source:
The Wall Street Journal elogió la derogación de la ley de alquileres en la Argentina
El medio de los Estados Unidos analizó cómo cambió la oferta y la demanda tras la decisión del presidente Javier Milei de derogar la ley de alquileres a fines de diciembre de 2023
www.lanacion.com.ar
October 02, 2024
The Wall Street Journal praised the repeal of the rental law in Argentina
The US media analyzed how supply and demand changed after President Javier Milei's decision to repeal the rental law at the end of December 2023
The Wall Street Journal praised Milei for repealing the rental lawSeth Wenig - AP
The renowned American newspaper The Wall Street Journal , a specialist in economic and business issues, published an article describing the reality and changes experienced by real estate in Argentina . The article referred to the rental law as the “strictest contract control in the world” and, in turn, argued that the repeal of Javier Milei “only brought benefits.”
The visible result of the repeal , according to the newspaper article, is that the rental offer of properties in the city of Buenos Aires increased by more than 170% since the beginning of the year and also mentioned that Argentina is experiencing a real estate boom .
“While rents continue to rise in nominal terms, many tenants are getting better deals than ever, with the real price of rental properties when adjusted for inflation down 40% since last October,” Federico González Rouco, an Argentine economist at Empiria Consultores, told the WSJ .
The rental offer of properties in the city of Buenos Aires increased by more than 170% since the beginning of the yearIgnacio Sanchez
“Milei’s decision to undo rent control regulations resulted in one of the clearest victories of what he calls ‘ economic shock therapy ,’” detailed the article, which cited a graph that Soledad Balayan, director of Maure Inmobiliaria, has been using since 2012. The graph shows in a compelling way how the liberalization of the rental market through the DNU led owners to turn their properties into rentals. “In other words, they once again trusted the traditional rental alternative (beyond the temporary) as an investment tool,” Balayan reflected, adding that “ the supply of apartments for rent seems to have found a ceiling, now what is sought is a balance since there are still distortions in the market. As inflation slows down, it will be easier to reach that balance.”
Soledad Balayan's post on X about her appearance in The Wall Street Journal article
The publication also insisted that in Argentina , when the rental law was in force, there were a large number of empty apartments because the owners did not agree with the regulation that regulated them. “In 2022, there were about 200,000 empty properties in Buenos Aires, 45% more than in 2018, according to a report by Cedesu, a political group based in Buenos Aires that focuses on urban development. It was difficult to find an affordable apartment under the rent control law,” the American media detailed.
Finally, the WSJ included in the article the situation of Aldana Oliver, a woman who appeared on the cover of the article and who spent 18 months looking for an apartment to settle in so she could study dentistry in Buenos Aires.
Front page of the printed newspaper in which a section of the article about Argentina appears
The digital note of the cover story of The Wall Street Journal Capture
“There were very few places to rent and the ones available were very expensive,” Oliver said. After rent control was lifted, he quickly found a studio apartment for about $200 a month . “I found something really nice. And I got a good price,” he concluded.
www.buysellba.com
