You can already see the impact of Javier Milei’s ads

Just a few hours after the results of the runoff were announced, the president-elect, Javier Milei, made the first announcements that anticipate guidelines from his government. In addition to the privatization of public companies, he announced the repeal of the Rental Law, an initiative questioned, but defended for the protection it granted to those who do not have their own home. Tenants and real estate agents Neuquen They gave their opinion on possible changes in a place with high housing demand.

The first announcements generated concern and even impact in the city. “Although the Rental Law is still in force, we have already received inquiries about abuses that are being made arguing that the law is going to be repealed soon,” he said. Federico PriorNeuquén reference of the Tenants Federation. He clarified, for example, that some make out-of-contract increases or rent with part-time contracts, for a few months, because they wait for the regulations to be repealed. He noted, however, that these maneuvers are not permitted.

From the real estate Great Valley Business They conveyed tranquility in the face of the announcements that were made in recent days. “Repealing a law of this type is technically impossible because state intervention will always be necessary in this type of contract, as happens in any country in the world. Even in liberal countries, state intervention is necessary in this commercial relationship. Let’s take the example from cities like New York or Madrid, where given the advance of Airbnb-type tourist rentals, and the shortage of properties for permanent rental, the State had to intervene by limiting and even prohibiting this type of rentals,” explained Lucas Albanesi, a representative of the real estate agency. .

“It is true that the Rental Law, even in its current modified version, does not resolve the underlying issue. Imposing a system of updating the rental value (both in term and in the type of indexation) does not solve anything. It only generates skepticism in the owner and the consequent speculation in the initial rental value that remains deregulated. Each owner can increase the publication value of a property at will and, in a market of limited supply and wide demand like the current one, values ​​skyrocket uncontrollably. as we can currently see, more than anything in Neuquén Capital and surrounding areas,” he expressed.

For Prior, the announcements of Javier Milei They further deepened the housing situation in Neuquén capital, where demand exceeds supply. Given the uncertainty about possible changes, many renters chose to withdraw their properties from the real estate market and wait for a time of greater stability. “The path of this political project is the commercialization of housing, which is what the large real estate market asks for, it deepens the business vision and not from the social point of view,” he said about his position of taking housing as a social and not just as a good. “I understand the frustration with inflation and the need to seek change, but this position is detrimental to their rights,” he said.

Fewer rental offers

The tenants’ representative assured that Rental property ads have already been reduced and that many expect homes to be priced in dollars, something that is already seen in Buenos Aires and tourist cities in Neuquén, such as San Martín de los Andes. “It would be a setback for an achievement of the last modification,” he said and clarified that many developed countries support State intervention in access to habitat, such as the regulations in New York for Airbnbs and the penalties for idle housing in developing countries. Europe.

Albanesi, from the real estate sector, broke down the current context: “Now, what resolves the underlying issue? Why are we now going through this housing emergency? Why before did the owner maintain his sanity when setting the values ​​of publication of their rentals? And this is explained by the market of supply and demand. Just a few years ago the market was overflowing with rental properties of all types, the supply was high. So the owner had to measure himself when setting the rental value , at the risk of having their property “idle” for months with the loss of profits that this implies. Today there seems to be no ceiling for this speculation in setting the value. And this is maximized in the region, where the high influx of linked workers to the oil and gas industry (around 40 people enter the province daily) means that the demand for rentals is through the roof. The result: priceless values ​​for those not linked to the industry.”

“What was different a few years ago? Simple: access to one’s own home. If we ask our parents, any worker once had the possibility of accessing a house or an apartment through the IPVU or telephone lines. credit from the Hipotecario bank. If we look closer in time, Procrear or the controversial UVA credit lines solved the same need. Today credit is zero and access to own housing is only for the privileged who can finance that dream with own funds. The vast majority today must go out and rent, not because of a financial decision, but because they have no other choice. Demand rises exponentially and values ​​are not far behind,” he reflected.

And he closed: “To summarize, the fundamental solution to the rental crisis will come from access to mortgage credit, like any civilized country. It is not necessary to go to Europe or the United States. Our neighboring countries all have accessible lines Unfortunately, it is clear that Javier Milei will not solve this problem with funds from the public treasury (as happened with the Anses funds destined for Procrear, for example). There will remain the hope that private banks will begin to grant these loans, as is also the case. in any civilized country.”

For now, the repeal of the Rental Law is just an announcement. Although it has already generated an impact in reducing supply in Neuquén capital, the regulations are still in force and any contract that escapes these regulations can be reported. Prior stated that the State has failed to monitor compliance with the regulations, but encouraged tenants to report any abuse in their rental contracts.