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After the DNU, supply increases but tenants warn of worse conditions

Since publication of the Decree of Necessity and Urgency (DNU) of deregulation of the economy signed by President Javier Milei, The real estate sector assures that the rental supply was expanded by at least 20% in the City of Buenos Aires. However, tenants They assure that it is a “story” and warn about the persistence of abusive conditions in the contracts.

The libertarian DNU is the first broadly deregulatory tool of the Milei government that is already in force. In the modifications proposed in 366 articles, there is the repeal of the Rental Law. This is a point that generates controversy between the property and real estate sector, which is in favor, and tenant organizations, who understand housing as a social good whose commercialization deserves to be regulated by the State.

In that context, The Decree mainly proposes the free choice of currency for contracts, eliminates the deposit limit, the minimum term for renting -If it is not stipulated, it is understood that it will be two years-, and update method It will also be defined by the parties, that is, applying the Lease Contract Index (ICL) or the Own House index is no longer mandatory. The amounts and currency of the deposits or guarantee deposits are also freely established and the contract can be terminated at any time, as long as the tenant pays 10% of the remaining balance. In addition, the registration of rental contracts in the Federal Public Revenue Administration (AFIP) is eliminated.

For the organization Inquilinos Agrupados, the President “assumes the powers of Congress and drafts articles of the Civil Code.” “With the new contracts you don’t know how much you are going to pay during the year, because they can renew it every two months and you can freely choose the update method,” the owner of it exemplified as a warning, Gervasio Muñoz.

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On the other hand, for the president of CUCICBA, Marta Liotto, there is “a strong increase in queries both from owners who had taken their properties off the market, and from tenants, who are looking to get out of current contracts.” Regarding the method and period of updates, the specialist assures that “the parties prioritize reaching the Consumer Price Index (CPI)” and a frequency of increases of six months, although in some cases they agree that it be quarterly. “What we want is to go back. Return to the stage where everything worked and worked well. Hang in the closet, in the chest of memories, these two disastrous laws that harmed the sector so much,” Liotto asserts, regarding the solution to the housing problem.

Rentals: offer vs conditions

The president of the Argentine Chamber of Real Estate Services Companies (CAMESI), Mariano Malbran, puts a number on Liotto’s auspicious outlook. According to the sector representative, Before the DNU came into effect, 20% more queries had already been received, of which 80% had already carried out operations. “Almost everyone wants to set the value in dollars, and those who don’t, talk about a value in pesos per Indec index (IPC) every three months,” explains Malbrán. In any case, he assures that The salary receipts required to rent “are high,” which limits the future tenant’s ability to search for a a context of high inflation and parities that do not compensate the cost of living.

For Juan Arrizabalaga, member of Inquilinos Agrupados from Tandil, the reality of the real estate perspective is far away. He understands that the initial numbers provided by the sector “are not real” and are only “interested information.” “It’s a story-telling while they are expropriating your pockets,” she says. Under that logic, For the representative of the organization, the seriousness of deregulation has to do with the conditions that are not agreed upon, but rather “imposed from the market.” “There are no minimum terms, everything is dollarized at the price they want, there are no limits to what is requested for guarantees, deposits“, months in advance, arrangements, extraordinary expenses, it’s all about balls against,” he argues. That is why he considers that even if there is more supply, if it is more expensive and in worse conditions, it is not an improvement in the situation.

As a counterargument, Alejandro Bennazardirector of Institutional Relations of the Argentine Real Estate Chamber, assures that it is wait for “the landlords to regain confidence” so that the increase in units is orderly and the panorama becomes clearer. Meanwhile, according to the Scalabrini Ortiz Study Center (CESO), a studio apartment in CABA increased 284% year-on-year in November, the same as a two-bedroom. Meanwhile, a three-room apartment rose 308% in the same period, while inflation was 160.9%.

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