Argentine Rental Market Sees 190% Increase in Supply Following Rental Law Repeal

Buenos Aires, Argentina – The repeal of Argentina's controversial rental legislation has been hailed by some as a significant positive step for the housing market, leading to a notable increase in available rental properties. The sentiment was encapsulated by social media user "santi," who stated in a recent tweet, "> lo mejor que le pasó a ambos lados de la mesa en materia de alquileres fue la derogación de esa ley. invotable." (the best thing that happened to both sides of the table regarding rentals was the repeal of that law. unvotable.) This change, primarily driven by Executive Order 70/2023, has reshaped the landscape for landlords and tenants.

President Javier Milei's administration enacted Executive Order 70/2023 in December 2023, effectively derogating the prior rental laws (Law 27.551 and its 2023 reform, Law 27.737). This executive action aimed to deregulate the rental market by returning greater contractual freedom to parties. Under the new framework, landlords and tenants can freely negotiate terms such as contract duration, currency of payment (including foreign currencies), and rent adjustment mechanisms and periodicity.

The previous legislation, Law 27.551, originally passed in July 2020, mandated a three-year minimum contract term and annual price updates based on a specific index that averaged inflation and salary increases. A reform in October 2023 (Law 27.737) attempted to address market imbalances by changing updates to every six months using the "Casa Propia" index, but maintained the three-year minimum and required payments in national currency. Critics argued these regulations significantly reduced rental supply and discouraged investment.

Following the repeal, the market has shown signs of significant change. According to a report by the Colegio Inmobiliario de la Ciudad de Buenos Aires (CABA), the supply of rental properties increased by 189.77% since December 2023, with a 5.39% rise in November 2024 alone. This surge in availability is seen by proponents as a direct consequence of the deregulation, fostering a more dynamic and accessible market for both property owners and prospective tenants.

While the DNU 70/2023 has not been without its legal challenges in other areas, the changes to urban residential leases have largely proceeded unchallenged, contributing to a new era for Argentina's rental sector. The shift underscores a broader governmental strategy to reduce state intervention in the economy, with the rental market serving as a key example of its immediate impact.