The tenants that they should renew the lease in may next they will have to face increases of 95.9%in the middle of a inflation that does not give breath and a drop in property supply. Said percentage arises by applying the Leasing Contracts Index (ICL) calculated by the Central Bank for contracts that are renewed on May 1st.
This index Take it average variation between inflation and average remuneration (RIP). According to him Real Estate Professional College (CPI), which brings together brokers from the City of Buenos Aires, “this number demonstrates, once again, the hard reality that lives the rental market throughout the country Due to the critical economic situation and, above all, to the current Rental Law“.
In that framework, the Real Estate Chamber asked for one meeting with the Economy officials to address the delicate situation.
Current state of the rental supply
From the CPI they warn that, as a consequence of this law, there is a “mass withdrawal of properties from the rental marketarriving at a practically nil offer of real estate in the Buenos aires city“.
The president of the Real Estate Chamber, Alejandro Bennazarexplained that “before the Ley de Alquileres was enacted, there was a 116% more offer of real estate in the rental market”. lack of supply moved to prices who, in the last year, accumulate a rise from 118.6% in the case of Buenos Aires departments, according to the ZonaProp platform.
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Market. Getting a property to rent today is not an easy task. There is little supply and high prices.
The focus on the Rental Law
The owner of the ICC, Marta Liottoconsidered it necessary for the State to move forward “in a modification of the Law that corrects the most harmful points that it has, such as the term of the contracts and the ICL itself”. The sector also requests policies of fiscal and tax court to recover the stock of units for rent.
“If progress is not made in this direction, the rental market (and, therefore, the thousands of Argentine families that depend on him to have a roof) will continue to suffer a situation that will not make more than aggravate month by month, above all, with the crisis we are experiencing,” he warned.
Source: Ambito
