After javier milei established himself as the most voted candidate of the Open, Simultaneous and Mandatory Primaries (PASO), the devaluation of the official exchange rate and the jump in parallel exchange rates, the real estate market, both in terms of sales and rentals, was virtually paralyzed. “When the dollar moves, the market stops,” he explained Alejandro Bennazarpresident of the Argentine Real Estate Chamber (CIA).
“This context is extremely negative for the real estate marketsince it implies an even greater brake on the historic low activity that we have been suffering,” said the president of the Sole College of Real Estate Brokers of the City of Buenos Aires (CUCICBA), Martha Liotto.
“Currently the phones don’t ring“, said Bennazar. The operations that were in negotiation were in “stand-by” because the situation of uncertainty is both for the buyer and for the seller.
What happened in the rental market after the devaluation
the market of rentals It came from high price increases, above inflation for new contracts, since those closed by law should maintain the price for one year. In this context, “the STEP results not only did they not clear the uncertainty in the markets and the economy in general, but rather increased it, and the latest economic measures only add complications to this scenario,” Liotto said.
Currently, the contracts are “increasing above inflation and the rise in the dollar, and they will continue to do so,” he asserted. German Gomez Picassofounder of Real Estate Report. He also said that this phenomenon is due to the low supply, added to the rental lawwhich requires annual updates in a highly inflationary context.
“It is impossible to know what inflation will be 12 months from now and how the owners cover themselves at that time from what is not perceived due to the increase in the rest of the economy. This generates expectations of higher increases than those that had been taking place until last week,” he added.
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Prices. The increases continue and the median of the studio apartments offered in the city is $78,000.
In the last survey of the Scalabrini Ortiz Study Center (CESO)the offer price of a studio apartment in the Federal Capital increased 144.9% in July, while year-on-year inflation was 115%, according to the National Institute of Statistics and Censuses (INDEC). “The median of the studio apartments offered in the Federal Capital is $120,000,” the report said.
In that same line, Bennazar stated that the increase in the month of August will be considerable because the Leasing Contract Index (ICL)with which the annual updating of closed contracts is carried out -which is an average between the RIPTE (average taxable remuneration of stable workers) and inflation- can go from 110% (which was the average until the beginning of August) to 120% in a single month.
Regarding the offer, he said that “as a result of the law” the owners turn to temporary rentals and maintained that currently “the 12,000 contracts that expire per month, more than 40% do not want to renew“.
Source: Ambito
