One of the most important measures from Argentine President Javier Milei, the repeal of the Rental Law (Ley de Alquileres), is already generating positive effects in the real estate market, which under previous administrations was heavily regulated.
According to the local newspaper El Cronista, just a month after the repeal of the Rental Law, the market has already reacted positively.
The supply of apartments in the city of Buenos Aires, which had been extremely scarce, doubled; going from 400 to 800 units, and prices fell by 20%, as explained by the Argentine Real Estate Chamber (CIA).
“In December, after Milei's announcement, that number doubled. Today, we have a stock of more than 800 apartments, and it grows every day,” said Alejandro Bennazar, director of Institutional Relations at the CIA.
The newspaper's report details that the greater supply of units, together with the possibility of freely negotiating a contract between the parties, which was impossible with the previous regulation, had a direct impact on the drop in prices.
“If the update is monthly, no matter the adjustment index used, rental prices were reduced from 20% to 30%, compared to the values of November and December,” said Daniel Salaya Romera, owner of one of the real estate agency Salaya Romera Propiedades. “If the contract is signed with bimonthly adjustments, the values decrease, on average, 15% compared to December.”
These positive reactions from the real estate market arise after Milei's Decree of Necessity and Urgency (DNU) in December, an extensive measure where dozens of laws were repealed and updated regulations in Argentina in many fields, including real estate.
La Nación, another respected Argentine newspaper, pointed out that the repeal of the Rental Law had an impact from its first day, generating an aggressive increase in the supply of rental units.
The publication highlights: “Milei's DNU changed the rules of the game in the rental market and the owners are publishing their apartments again.”
The success of Milei's move resonated not only in Argentina, but also in the United States, with American political figures reacting to the positive effects of the measure on the real estate market.
One of those politicians was businessman Vivek Ramaswamy, Republican presidential candidate, who stressed that deregulatory policies “work” and that his “goal as President is to make Milei look like a moderate.”
Turns out it actually…works. My goal as President is to make Milei look like a moderate. https://t.co/BoeXkJ98pE
— Vivek Ramaswamy (@VivekGRamaswamy) January 13, 2024
