Real estate caps imposed to slow Venezuelan inflation | 3 December 2013
In order to curb Venezuela’s high inflation rates, President Nicolas Maduro has announced he will be placing a cap on rental prices on commercial real estate, foxnews.com reports.
On Friday (29 November), Mr Maduro signed a decree that stipulated commercial leases could not be charged at anything above a monthly rent of 250 bolivars per sq m.
The controversial step has been taken as part of a plan to reduce the high inflation rates that Venezuela is currently experiencing; reports confirm they are running at a two-year high of 54 per cent. The government has also insisted that certain retailers cut the prices of their goods and cars, to aid the situation.
The rising prices are said to have placed a heavy strain on the middle classes, who Mr Maduro is trying to protect, according to brecorder.com.
Mr Maduro has concentrated on commercial real estate in particular as he believes some businesses have been ‘trying to sabotage the economy by stoking inflation’.
As such, this could be a good time for individuals or companies to lease properties, safe in the knowledge that they can’t be charged in excess of the rental limit, regardless of inflation.
Additionally, in an attempt to make leasing an easier process, the decree also mandated that any disputes between tenant and landlord must now be addressed and resolved by a government body, rather than a private agency.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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