The repeal of the Rental Law after the entry into force of Legislative Decree 70/2023 has generated an increase in supply and prices drop “on average 20%” in some areas of the city of Buenos Aires, experts indicate.
“Until about 20 days ago the offer was zero, we didn’t reach 50, 60 houses; and until yesterday (Friday) there were more than 7,000 on offer”, said the president of the Chamber of Owners of the Argentine Republic (Capra), Enrico Abatti.
“This fundamentally benefits owners and tenants as well as real estate agents,” explained the expert.
Likewise, he emphasized it “today the tenant can choose and discuss the price of the rent”, which led to”In some neighborhoods of the Federal Capital they have dropped by 20% the average rent price compared to what landlords wanted a month ago.”
In this context of falling prices, experts told Clarín last week that they had noticed an increase in the supply of properties, although precise data on demand does not yet exist.
Abatti recalled that “from 1 July 2020 the Rental Law came into force it was the source of all the difficulties “What happened not only to the tenants, who could not find accommodation, but also to the owners, who had conditions unrealizable by the tenants, with contracts frozen for a year, with inflation above 160%.”
“Before the entry into force of law 27,551 there were no major problems between tenants and owners: in the Federal Capital there were at least 20,000 permanent homes,” he said in statements to Rivadavia radio this weekend.
However, he continued, “When the validity of that law began, it gradually diminished until reaching 1,300 homes about six months ago.
“Then the second law was approved (No. 27,737), with which they intended to modify the disasters they had caused with 27,551, but It was like pouring more fuel on the fire. because from there the offer disappeared“said the president of Capra.
He also highlighted that starting from Legislative Decree 70/2023 “You can use foreign currency because article 765 of the Civil and Commercial Code was reformed, where foreign currency was considered a thing and this does not happen anywhere in the world.”
In this sense, he specified that the currency “is now considered, but not as a legal resource of the country, but rather as a means of canceling an obligation.”
“This is an extraordinary fact”, underlined Abatti, who considered the entry into force of decree 70/2023 as “a Copernican change”.
For his part, Daniel Zampone, vice president of the Argentina Real Estate Chamber (CIA), declared that “the real estate market is recovering” after going through “The worst four years of the market century so far.”
In the dialogue with LN+ over the weekend, Zampone commented that since the repeal of the law, contracts have been stipulated “as they did before 2020: every two years, in pesos and updated every three months for inflation.”
Regarding the currency agreed to pay the rent, the vice president of the CIA said this “you can agree with dollars, reais or pesos, the current currency anything, as long as the parties agree.”
In this sense, he cited a recent case that happened in Rosario, Santa Fe, where both the owner and the tenant agreed that the payment would be in bitcoin.
“The impact on supply was immediate”market experts told Clarin last week.
Soledad Balayan, from Maure Inmobiliaria, commented that in one week (January 1st) “the number of units offered grew from 5,700 to 6,500 in one week,” almost 20%.
In this sense, the expert indicated it “February and March will be fundamental because these are usually months in which many contracts are signed. “People are returning from vacation.”
SN
Source: Clarin
