The Government’s idea to suspend the Rental Law through a Decree of Necessity and Urgency (DNU) it basically caused uncertainty in the real estate sector. This has been reflected in multiple inquiries from prospective tenants and landlords. Also many of the contracts that were about to be signed have been put on hold until they have more certainty, they ensure in the sector.
“Since the news became public, uncertainty has been generated and it is assumed that it will cause a greater contraction in supply,” says Roberto Arévalo, a real estate entrepreneur who operates in the Federal Capital.
According to your experience”there are specific cases of suspension of companies ordered by the owners. It happens that potential tenants, landlords and brokers, in the absence of clear rules, aware of the negligence of the policy, hang in wait,” the entrepreneur said when asked how the possibility of canceling the concession affected places.
The truth is that with the current law that adjust the price once a year amid high inflation, the three-year duration of the contract when there were two, the growth of tourist rentals and the dollarisation of contracts They have created a situation of market paralysis. The offer has dropped by 30% in the municipality.
According to Marta Liotto, president of the City’s Real Estate Professionals Association (CPI), “the news of the suspension of the law has had a strong impact on the sector because when uncorroborable reports are generated, uncertainty grows among market operators and therefore, many operations are at a standstill awaiting greater certainty”said the representative of the Buenos Aires real estate.
Alejandro Bennazar, head of the Real Estate Chamber (CIA), says the news “fell well in the market to the extent that it is tall and does not remain in an advertisement”, he indicated. “The negative is the unknown factor, the uncertainty that is generated in the market” “Now let’s wait for what will be resolved: if it is a matter of repeal of the law, it should go through Congress. If it is a question of an annulment, we believe that the previous law could be applied again,” he slipped.
According to broker Oscar Puebla, “All of this is a big uncertainty. We don’t know where the problem will go. What we tell people is that, through the repeal of the law, we will see more offers and that will more peace of mind for the market, values will drop and we will have clearer rules“he points out.
According to a recent report by the General Directorate of Statistics and Censuses of Buenos Aires, based on data from the specialized portal Argenprop, the supply of properties available for rent in the city of Buenos Aires it’s down 30% in the past year. This was one of the consequences of the change in the rules of the rental market introduced by law, in addition to the exorbitant price increases.
In the last few hours, according to his experience, “there is a good expectation from the owners and in the case of the tenants, the doubts arise from knowing if there will be new properties on the market to rent”. it still doesn’t happen because it doesn’t exist, we have clear rules. The questions are many and we hope this will be resolved as soon as possible,” he said.
At the offices of Toro Brokers SA, in respect of accommodation (not at the offices) all contracts have been suspended that they had planned for this week and next week, said Sebastian Cantero, owner of that real estate agency.
Among the many concerns, according to businessmen, people consult what will happen to those who have a valid contract according to current legislation (27551).
“The contracts that have been signed They will remain in force, they will remain as they are. The suspension or repeal of the law will take place for the new contracts”, says Cantero. Arevalo also agrees: “in fact, the contracts signed pursuant to law 27551 remain in force, even if a new law is promulgated since it does not have retroactive effect”, he pointed out.
Source: Clarin
