The advance of inflation is directly reflected in the value of rents. For this reason, those who signed the contracts in February are calculating how much they will have to pay starting this month.
As established by the rental law effective from 2020, the increase in rents it is administered once a year: both after 12 months from signing the contract and after 24 months. At that point, all tenants must pay an increase through a calculation that is made taking into account the average taxable wages of stable workers (Ripte) and inflation (IPC).
The data updated to February 16 of this year (last official update), as indicated by Marta Liotto, head of the Real Estate Professionals Association, gives 87%.
This means that if a person signed their contract on February 16, 2022, they can do sor$45,000 for example, you will have to pay from the 16th of this month $84,250. In other words, it will have had an increase of 87.2%. For those who had to do it in January, the increase was 81%.
Despite the strong impact on the pockets of those who do not own the place where they live, these increases continue to exist below headline inflation as the inter-year CPI increase (January 2022 vs. January this year) is practically 99%.
As regards what happened in 2022, according to the surveys of the real estate advertisement platform Zonaprop, in the City of Buenos Aires the increase in rents reached 98.2%, above the inflation of 94.8% and also the level of adjustment of the contracts. Instead, in Greater Buenos Aires, prices have been adjusted slightly below: 71.2% in the North GBA and 83% in the West and South GBA.
According to the analysis by the University of San Andrés on the basis of Mercado Libre data, the lower price increase in the North area is due to an increase in the supply of rental houses, of the order of 63%, in addition to A a drop in demand for this type of property, also because many of them are dollarized.
The method of adjusting the rent, as well as the duration of the contracts, which after the new law has increased from two to three years, continue to be grounds for controversy between real estate, landlords and tenants.
According to the president of the Argentine Real Estate Chamber, Alejandro Bennazar, “to avoid the impact on prices and a greater supply of properties on the market, there should be a new law that offers the possibility of return to the two-year contract with a maximum adjustment every six months corrected by a salary value coefficient (CVS)”.
In that sense, he said the new updated index shouldn’t contain the CPI alongside it because “it’s an unknown factor for all parties and forces them to negotiate constantly,” he said.
Among other concepts, according to the leader, “so that there may be a decrease in prices on the market Incentives are needed to increase the supply of real estate and also a return to access to credit, as a state policy,” he said.
NEITHER
Source: Clarin
