In real estate, they point out that official indecision brought down the few negotiations underway. Meanwhile, the increases by the current law continue
By patrick eleisegui
12/04/2023 – 13,00hs
The feint was the worst decision, they say in real estate. The renewed calm of the Government after letting it be known that it would deactivate the rental law injected an overdose of uncertainty that ended up completely paralyzing operations. In this stretch of April, the new contracts are conspicuous by their absence, while, for tenants, the scenario has also become worse: while the regulations remain in force, the increases adjusted for inflation and parity are already around 95 percent.
From the field of marketing, they point out that the ruling party “stayed there after the comments and the promises of advertisements.” And that, at least until now, “what could have been died there“.
“The market was left as if all this had been a dream,” he acknowledged to iProfessional Marta Liotto, head of the Professional Real Estate Association (CPI). “Now there is no offer and the adjustment percentage continues to rise,” he added.
“We do not know at this point what to think. Because politics even seems to turn the other way with the situation around the elections in the City and the decisions of Horacio Rodríguez Larreta. No one from the Ministry of Economy, the Chamber of Deputies or the Government House has ruled on what will finally happen with the law,” said the directive.
“A week from the headlines, there are no news. In real estate there are many drawbacks: times are running out and the deadlines for signatures are getting shorter. We don’t know what can happen with the new contracts that arise,” he added.
Rental law: another record rise in this section of April
Liotto reported that, based on current regulations, rents for those who in this section of April must comply with the annual adjustment face minimum increases of 93.7 percent.
Uncertainty about the future of the current framework froze negotiations for new contracts.
The increases that are applied each month are the result of a coefficient that, established by the Central Bank (BCRA), combines the numbers of precisely monthly inflation and the salary increases agreed in the parities.
Since its implementation two and a half years ago, the coefficient in question accumulates an increase of more than 265 percent.
“The government’s move ended up becoming a kind of test of the market and public opinion. Days after what was revealed, it is clear that the ruling party came out to measure the popular will in the face of the possibility of suspending or repealing the law. In In reality, the initial idea of the Government was precisely the repeal. But they found that an action like this borders on illegality,” another reference to real estate activity, strictly off the record, commented to this medium.
“The Government understands that going through Congress would imply facing a process of months and that’s why he didn’t move the pieces in the last days. Unfortunately, the possibility of a positive change for the sector ends up being diluted by this impossibility of applying the repeal. The ruling party seems to be in a hurry or, in any case, not very interested in completing certain processes,” he added.
Negative market reaction
In the midst of the uncertainty, the niche reaction has been a violent retraction of the offer, combined with the position of multiple owners to cancel reservations and pre-agreements.
CPI sources indicated that the availability of units fell to less than 1,100 houses and apartments for rent after knowing the official decision to change the regulations. The historical average is of the order of 6,500 properties.
The offer of extensive rentals has not ceased to be limited since the current law is in force.
“Tenants with contracts communicate to find out how this whole situation affects them, while the owners withdraw apartments,” Marta Liotto, head of the entity, told this outlet.
“We inform people who have current contracts that everything continues as signed,” he said.
Liotto maintained that “for us this context is a problem. They call and say that, if we go back to the two-year contract and the free agreement on prices, as was the case before, it is better to wait to rent the property again. The Government made announcements without support that complicated the situation.
Meanwhile, in the field of tenants, complaints are accumulating the decision of the owners to freeze or directly cancel the concerted reservations in the last hours.
