Added to the wide margin of supply is competition in the market, causing prices to stabilize. Although they have not registered decreases in fees, they do detect reference values that have been sustained during these months of the year.
Regarding the reasons why the real estate market in San Juan has become more oxygenated, Domínguez analyzes several aspects. On the one hand, he details that the values entered into equilibrium due to the increase in supply. “When a unit is listed at an out-of-market value, it ends up being balanced because it does not arouse the interest of the tenant,” he says.
And he continues “values tend to compete in the market by increasing the units available. Before there were different units and unaffordable prices were requested. The values have been sustained because we have had months where inflation has risen quite a bit, but they do not keep up with inflation, so in several cases they are affordable rents.”
On the other hand, he assures that the fact of not having State intervention in the deadlines or updates led to the range of offers being expanded. “The scenario we have within the context is positive. We come from years with rental laws that harmed the market and today we see a more encouraging outlook compared to last year,” he said.
In that sense, he welcomes the launch of mortgage loans, since it will lead to families obtaining their own home, leaving more properties available for rent, leading to further growth in supply.
“If the market remains as it is, it will continue to generate a positive outlook that will help not only the owner but also the tenant,” Domínguez reflected.
Without law, what are rental contracts like?
For his part, the representative of the real estate brokers specified that, although each real estate agency or owner agrees with the tenant on the rental contract format, in most cases similar standard contracts have been handled since January.
“Today, contracts are made for two years with quarterly increases based on the location index, which is an average between inflation and salaries,” he explained.
As detailed, the LCI (Leasing Contract Index) is not far from inflation, but neither is it far from salaries, which is why it represents less in the tenants’ pockets, being convenient for both parties, which is reflected in the payment compliance.
“Obviously it is difficult to make ends meet, to pay the rent, but we have 97% compliance with the payment of the rental fee according to the survey of the College Statistics Commission, which is not a minor figure,” concluded Domínguez.
