HomeInternationalGiven the drastic drop in the supply of rents, in Congress they...

Given the drastic drop in the supply of rents, in Congress they are already talking about discussing a new law

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Given the drastic drop in the supply of rents, in Congress they are already talking about discussing a new law

The persistent inflation, which will end the year above 50%, complicates all variables, especially including rents, where supply suffered a strong retraction this year.

There were many owners who took their properties out of the offer and argue that the regulatory framework imposed by the Rent Law does not provide clear rules of the game for real estate activity.

Faced with this scenario, Congress will seek to agree on a new bill to replace the current law, enacted in mid-2020.

The president of the Chamber of Deputies, Sergio Massa, admitted that they will try to change it.

Massa acknowledged that “the law failed and ended up reducing the offer, reducing the possibility of developing the business and also generating uncertainty and difficulties for the tenant.”

The objective will be to find a rule that provides certainty to the owner and guarantees and peace of mind to the tenant, so that the sector can freely develop the activity, said legislators aligned with the massismo.

The chambers of the real estate sector have already been warning about the need for changes in the rule, so that the offer does not continue to disappear.

Among the issues to be resolved, in a context of high inflation, the following would be included in the debate:

– The updating of contracts once a year according to an index that combines 50% variation in wages and 50% inflation.

– Also reduce the duration of contracts, which the current law extended from two to three years.

– In addition, promote a loan project for your own home with quotas updated by the salary variation index.

The Argentine Real Estate Chamber has been warning that due to the current rental law a high percentage of the properties were withdrawn from the market.

Among the initiatives requested by the sector is an alternative update rate for rentals.

In that sense, they mention the Salary Variation Coefficient (CVS).

And they maintain that the rental period cannot exceed one year.

In addition, they agree on the need to convene all parties to discuss the new law, which the ruling party is already promising.

The Unique Association of Buenos Aires Real Estate Brokers (Cucicba), which has been demanding a new law for several months, says it has the promise that the new law will be discussed shortly.

“They were waiting for the elections to pass to launch this issue, which is necessary so that the sector does not continue to decline,” Cucicba sources told the NA news agency.

The demand of the auctioneers is to return to the 24 months of contract and admit a free agreement for a semester adjustment.

To make the changes there would be consensus with the opposition, since the elected deputy María Eugenia Vidal is one of the leaders of Together for Change that has been promoting the change of the law.

A recent survey by the Zonaprop real estate platform showed that 8 out of 10 owners consider that the Rent Law harmed them. (NA)


in details

The persistent inflation, which will end the year above 50%, complicates all variables, especially including rents, where supply suffered a strong retraction this year.

There were many owners who took their properties out of the offer and argue that the regulatory framework imposed by the Rent Law does not provide clear rules of the game for real estate activity.

Faced with this scenario, Congress will seek to agree on a new bill to replace the current law, enacted in mid-2020.

The president of the Chamber of Deputies, Sergio Massa, admitted that they will try to change it.

Massa acknowledged that “the law failed and ended up reducing the offer, reducing the possibility of developing the business and also generating uncertainty and difficulties for the tenant.”

The objective will be to find a rule that provides certainty to the owner and guarantees and peace of mind to the tenant, so that the sector can freely develop the activity, said legislators aligned with the massismo.

The chambers of the real estate sector have already been warning about the need for changes in the rule, so that the offer does not continue to disappear.

Among the issues to be resolved, in a context of high inflation, the following would be included in the debate:

– The updating of contracts once a year according to an index that combines 50% variation in wages and 50% inflation.

– Also reduce the duration of contracts, which the current law extended from two to three years.

– In addition, promote a loan project for your own home with quotas updated by the salary variation index.

The Argentine Real Estate Chamber has been warning that due to the current rental law a high percentage of the properties were withdrawn from the market.

Among the initiatives requested by the sector is an alternative update rate for rentals.

In that sense, they mention the Salary Variation Coefficient (CVS).

And they maintain that the rental period cannot exceed one year.

In addition, they agree on the need to convene all parties to discuss the new law, which the ruling party is already promising.

The Unique Association of Buenos Aires Real Estate Brokers (Cucicba), which has been demanding a new law for several months, says it has the promise that the new law will be discussed shortly.

“They were waiting for the elections to pass to launch this issue, which is necessary so that the sector does not continue to decline,” Cucicba sources told the NA news agency.

The demand of the auctioneers is to return to the 24 months of contract and admit a free agreement for a semester adjustment.

To make the changes there would be consensus with the opposition, since the elected deputy María Eugenia Vidal is one of the leaders of Together for Change that has been promoting the change of the law.

A recent survey by the Zonaprop real estate platform showed that 8 out of 10 owners consider that the Rent Law harmed them. (NA)

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