Rental prices have risen 27% since the new law regulating contracts was promoted

07/10/2020 - 17:19

• Clarín.com

• Economy

• Human Resources

The benefits that the new

was going to bring to the tenants are not yet materializing.

What can be seen is that the changes

, who reacted as had been warned: holding back the supply of real estate and

of the new contracts.

The latter is in itself important, because in recent years what has been observed is that the average rental cost has been rising

Former national deputy Daniel Lipovetzky, promoter of the criticized Rent Law

But the law changed the scenario, and ended up generating effects contrary to those intended.

In fact, the formula

has already been installed

to synthesize this phenomenon, in reference to the former national deputy of Together for Change

, main promoter of the Rent Law.

The concrete thing is that a report known yesterday, prepared by the real estate business site

, indicates that “from the sanction of the new rental law on July 1 of this year (housing rental contracts)

. "

The report also highlights that so far in 2020,

The report concludes that "there are signs that indicate that most of the impact of this law has already occurred at the level of publication prices, but there are still a few more percentage points of extraordinary adjustment in the coming months."

The main reasons that drove this phenomenon are two: the contracts must now be made

instead of the two that had been agreed until the entry into force of the law.

And

and the evolution of a new index will be taken into account, which reflects in equal parts the evolution of the CPI and the Salary Variation Coefficient (CVS).

The extension of the contract increases, justifiably or not, the

, because he is delivering an equity for three years.

The price adjustment broke a rule of

that had been agreed between tenants and owners.

What can happen is that if inflation is very high, and wages do not accompany it,

, despite the fact that the CVS pulls down the magnitude of the adjustment.

And it is a potential source of conflict between the parties.

Regarding the price adjustments of the contracts, the Government extended the

.

Accumulated inflation may generate a shock the day the thaw arrives.

And

This is what it is feared that could happen once a year, when the time comes to adjust the values ​​of the contracts according to the new law.

Returning to the Zonaprop report, the work highlights that the average prices in the City of Buenos Aires, for an average apartment with two rooms and 50 m2 is located at

, that is, it rises 6.2% in the month , this increase is lower than that of July (7.9%) and August (6.5%), but higher than the speed of adjustment prior to the rent law.

For its part, a unit with three rooms and 70 m2 is rented for 38,617 pesos per month.

In the last 6 months, rents increased at a rate of 67% per year, the highest increase since the start of the series in 2012.

Look also

The Government will extend the freezing of rents and UVA credits and the prohibition of evictions

New rental law: less supply, price rises and fears due to the indexation of contracts