Natalia Muscatelli
08/12/2020 - 19:59
- Clarín.com
- Economy
- Economy
As of the entry into force of the new rental law, a large part of the real estate market believes that there will be an increase in the stock of properties that will be put up for sale and that this could continue to push property prices down.
So far, the year-on-year drop in property prices is estimated at 16.6% on average , taking into account the prices published in the first half of 2019 versus the values of the operations closed in the same period of this year, according to a report from Remax real estate.
"In principle it is presumed that part of the offer that is for rent could go up for sale taking into account a set of factors" explains José Rozados, Real Estate report analyst: "First, because the law implies an increase in risk for owners because The term of the contract is lengthened and generates uncertainty regarding what the level of updating of the rents will be. If the rent is added that is at a level lower than 2% per year, all this can be done by the owner withdrawing the property from the rental and trying to sell it. Or decide to invest that value in other markets, "he says. Anyway, for now, there are many doubts about what will happen in the future," he says.
Also the businessman of the sector Sebastián Cantero points out that "with this law, neither the owners nor the tenants know what they are going to charge or pay next year. For this reason, many people decide to leave the apartments empty or put them up for sale. So, the greater the supply of properties the values go down ", he summarizes.
Prices in real estate in CABA / Remax
According to Santiago Levrio, Co Creator of Emehomem “the data is showing that there are more people taking properties off the market. However, the owners do not have the hope of selling and some are trying to change the rented or empty apartments as payment currency to buy at the well, ”he said.
The same is the opinion of Agustin Walger, commercial director of Lépore Properties : "the investor who has the rent as extra income, sells it and puts it in works. The problem is for those who depend on the rental income and if they don't rent the property they need to sell it. For this reason, the price trend will continue to decline, "he said.
Meanwhile, Horacio Ludigliani, from the homonymous real estate company, adds that one month after the application of the new rental law, "legislators are studying modifications to increase the supply of real estate. The owners are withdrawing from the business because today it is a good opportunity to sell and invest well with less risk than rent and a profit in hard currency, "he says.
"If one analyzes the last quarter by applying the new form of rent updating, it is well below real inflation. Those who remain in the market increase their values by a minimum of 30% since 3 years and a single month of deposit disadvantages the owner. Thus, many contracts chose not to renew "
Regarding property prices, according to Remax, "The values for at least two years are down. The factors that are driving this situation are the drop in the cost of construction due to the devaluation and the exchange rate gap that is Today they have the lowest demand due to the null supply of mortgage loans in the current economic context and the growth in the supply of properties, "they explained at the firm.
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