With galloping inflation,
the escalation in rental prices continues to rise
.
In May, tenants who have to renew their contract will pay
a 95.93%
increase in the amount of the monthly payment.
This arises from applying the Leasing Contracts Index (ICL) calculated by the Central Bank for contracts that are renewed on May 1.
This index takes the average variation between inflation and average remuneration (RIPTE) and, in this context,
the trend of the rent adjustment index is on the rise.
According to the Professional Real Estate Association (CPI), which brings together brokers from the City of Buenos Aires, "this number demonstrates, once again,
the harsh reality that the rental market is experiencing
throughout the country as a result of the critical economic and above all, to the current Rental Law," he said in a statement.
And it awarded to that norm, "a massive withdrawal of properties from the rental market, reaching a
practically zero offer of real estate in the City of Buenos Aires.
According to Alejandro Bennazar, president of the Real Estate Chamber (CIA), "before the Rental Law was passed,
there was a 116% increase in the supply of real estate in the rental market,"
he said, based on studies carried out by the chamber.
This lack of supply was transferred directly to the prices that, in the last year, accumulated a rise of
118.6% in the case of the departments of Buenos Aires,
according to the ZonaProp platform.
According to the Center for Economic and Social Studies Scalabrini Ortiz (CESO), the median of the studio apartments offered in the Federal Capital was, in March, $80,000.
In other words, taking into account that
the Minimum Vital and Mobile Salary is $69,500, it only covers 86.9% of a rent
.
According to the same survey, the median of offers for two-room apartments is $90,000 and $150,000 for three-room apartments.
Is the Rental Law suspended or not?
The distortions in the market from the implementation of the Rental Law have been dragging on
for almost three years.
But the concern in the real estate sector intensified especially, after the Government let it be known, weeks ago,
that it would suspend the Law in force since July 2020.
However, after that hint of announcement that, it was even speculated, could be given through a DNU (Necessity and Urgency Decree) there is still no official information about it.
The Real Estate Chamber requested
a meeting with Economy officials to address the issue, which could take place next Monday.
Marta Liotto, head of the CPI, raises "the urgent need for the State to move forward in a modification of the Law that corrects the most harmful points it has, such as the term of the contracts and the ICL itself," she says.
And she recalls that the sector is also asking for fiscal and tax cut policies to recover the stock of units for rent.
"If progress is not made in this sense, the rental market (and, therefore, the thousands of Argentine families that depend on it to have a roof)
will continue to suffer a situation that will only worsen month by month,
especially with the crisis that we are experiencing”, said that entity.
According to Gabriel Brodsky, CEO of the Predial firm, "since the Government slipped the possibility of repealing the Law, the real estate market, which came with a very low supply of rentals, was even more affected.
“
New rentals are not entering, there is no stock available.
The little that is published is rented hours later.
There is despair for all kinds of properties, ”he tells about the reality of his business.
“The only thing that announcement did was make
the owners go into stand-by mode to see what happens.
It is convenient for them to wait a few days or a few months and thus avoid annualized three-year contracts because if the Rental Law is finally canceled it is very feasible that they will be two years again ”, he risked.
NE
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The rental law, campaign loot in the election year
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