CARACAS, Thursday November 22, 2012 | Update

Venezuela's house rental up to USD 1,960.46 per square meter

Different parameters will be used to calculate house rental value

Before setting a property’s replacement value, inspections shall be carried out (File photo)
Thursday November 22, 2012  03:15 PM

Venezuela's Housing Ministry has published the square meter baseline price for house rental and sale of rented apartments.

The information has been released through Official Gazette No.40,054, dated November 20. The official publication outlines the replacement value (square meter) of multi-family dwellings (buildings) and single-family homes (houses). It also provides for a set of parameters to be used by the House Rental Superintendence to determine costs and tenants' rents.

According to such parameters, square meter minimum value as per multi-family dwellings has been set at USD 787 whereas the maximum value is USD 1960. Regarding single-family households, the value ranges from USD 435.5-1,639.53.

Nearly three weeks ago, Housing Minister Ricardo Molina stressed, "Immovable property is appraised by means of a socialist-based criterion. Dwellings are not a commodity, but fundamental elements to fulfill a human right."

Pursuant to the legal framework, five parameters shall be taken into account in order to set house rent: replacement value, property dimensions, depreciation value, seismic vulnerability, and geographical region.

The presence of elevators and basement, and the number of floors in buildings are also to be taken into consideration.

Before defining a property's replacement value, inspections shall be carried out. If upon the respective inspections officials determine a property is below 57 points, the minimum baseline per square meter shall be adopted. Instead, if a property is above 444 points, the maximum baseline shall be used.

Translated by Jhean Cabrera
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