“The rental price is the only frozen price in the Argentine economy, which remains unchanged for a year, living with inflation rates that already reach 71% year-on-year“, they affirm.
As they stated, the situation does not benefit the tenant either: “the flight from supply caused by the combo of loss due to inflation and low rent, forces him to assume higher initial prices within the scarce supply available.”
“The dynamics of the evolution of the real rental price in the current context of inflation, demonstrates in fact, that there are less than 10 months of effective rent collected or paid, depending on whether it is the owner or the tenant, out of the 12 corresponding to the year of the contract. The equivalent of at least 2 months of the initial rent vanishes due to the effect of inflation. Only in month 12 the loss reaches almost 40%, “they detailed.
In this sense, the report assures that: “rents are far from increasing in real terms and are even recomposed annually below inflation”.
“The problem is not the market that only reflects an underlying problem. Nor is it about the “greed” of the owners who are the ones who finance this kind of “now 12” imposed by the new law on the price of rents. The problem is the loss of the purchasing power of the currency, which is within the orbit of the state to solve or at least mitigate.“, they conclude.
Source: Ambito
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