The real estate market has already hit bottom and they expect growth in supply

According to Alejandro Bennazar, Director of Institutional Relations of the Real Estate Chamber, there was recently a considerable increase in inquiries and offers, “at good levels of operations after the DNU.” Therefore, they remain expectant.

He Decree of Necessity and Urgency (DNU) 70referring to the deregulation of the economy and which in one of its sections repealed the Rental Law, came into force on December 29 and established a new panorama for tenants and owners.

The application of the DNU promoted by Javier Milei established that the rental contract can be done in any currency (for example, in dollars), for any term and that the parties may agree to adjust the value of the rentals.

In that sense, the official rule explained that “the use of any index agreed upon by the parties, public or private, expressed in the same currency in which the rents were agreed will be valid.” The entry into force of the decree generated mixed reactions between tenants and real estate agencies.

DNU: the effects on tenants and owners

On the side of the former, the group that represents the interests of the individuals who are looking to rent, came out against it and filed an action for annulment along with a precautionary measure to annul the DNU.

While since real estate They were in favor of the measure and assure that in recent days the supply of rental properties began to grow.

In December, the supply of properties for rent decreased by 68.6% year-on-year, as revealed by a Real Estate Report.

Rentals: how contracts are currently negotiated

An important aspect to clarify is that the signed contracts before December 29, they continue to be under the regime of the aforementioned law, while those signed subsequently will be under the new DNU until the Justice or the Executive decide otherwise.

To the there is freedom to negotiatethere is diversity in the contracts that were signed under the new regulations established by the Executive, with differences in the deadlines and the formulas used to establish the updates.

According to Marta Liotto, former president of the Real Estate Professional Council, 50% of the contracts are being signed for one year and another 50% for two years.

Regarding updating the contract, he stated that “some owners ask for a quarterly increase, some have asked me quarterly”.

In addition, the survey reflected that the index used to update the rental value is the INDEC CPI. This was explained to the web portal Jorge Toselli, from JT Inmobiliaria, indicating that “the trend of new contracts pwould appear to be for 24 monthswith a adjustment biannual according to the variation of the INDEC CPI for that period” and added that “I do not believe that, in the case of traditional rentals, they are agreed in dollars. “That will be left for the temporary ones or perhaps the higher quality properties.”

For his part, Daniel Bryn, founder of Invertire Real Estate, contributed that “what is most likely, or what is seen in common, is that the adjustment will be semiannual and that it will be due to the ICL (Index of Lease Contracts), which is the one contemplates the BCRA, or by the CPI” and specified that “we are moving towards adjusting for inflation, as a second alternative the ICL and, as a third, salaries.”

In that sense, he pointed out that ““If it is due to inflation, what is being imposed is a semiannual adjustment,” On the other hand, “if it is due to other adjustments (such as the ICL or salaries), which in reality are not as high as inflation, it may be that the adjustment is every three months.”

The requirements requested for the tenant with the new rental contracts, After the entry into force of the DNU, they are a blank salary receipt and proprietary guarantee or surety insurance. Additionally, when entering an apartment, you must pay one month in advance plus another deposit.