The norm established that the increases should be determined according to the Rental Contracts Index, which combines inflation and the evolution of wages.
from next month of July they are going to start to expire first rental contracts signed under the new Rental Law, in force since July 2020. Said regulation, among other things, established contracts with a minimum term of three years. The market already anticipates that, in the case of renewal, the new contracts could contain strong increases for tenants.
The current Rental Law stipulated the annual updating of rents or, in other words, that the prices paid by tenants increase every 12 months. Furthermore, he determined that those increases were determined according to the Leasing Contract Index (ICL) who publishes the central bank and combines inflation and the evolution of wages.
Within this framework, it is expected for the contracts that were managed tied to the Central Bank index, the increases be very tall since they will add to the high inflation it is added that the current Rental Law aims for the increases to be below inflationso the owners will surely want to recover what was lost in that period.
Market Estimates
According to the notices published in Zonaprop, the platform calculates that the rental prices for new contracts accumulate in 2023 a 38.4% increaseby above inflation (29.6%) and the ICL (23.8%). The price variation registered in the last 12 months for new contracts was 126.3%superior to the inflation (105.2%) and to the adjustment of the contract formula in accordance ICL (94.9%).
For those looking for a new rental, the average price among the notices published for the Buenos aires cityIt is $105,613 per month for a studio. for a two-room apartment reaches the $128,584 average monthly and one of three rooms averages a value of $169,000 monthly .
Source: Ambito
