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How much will rents increase in February 2025? - La Nacion Propiedades
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Cuánto aumentarán los alquileres en febrero 2025
La derogación de la ley de alquileres generó que en la actualidad convivan distintos tipos de contratos; de cuánto será el aumento de cada uno en el segundo mes del año
www.lanacion.com.ar
February 04, 2025
The repeal of the rental law has meant that different types of contracts currently coexist; how much will each one increase in the second month of the year?
The increase in rental contracts in February 2025
Read the summary and glossary generated by artificial intelligence.
On February 1, two types of rental contracts will be adjusted : those signed under the Rental Contract Index (ICL) of the now repealed law and those agreed upon for contractual freedom after the repeal of the rental law . It should be noted that each type of contract was agreed upon in accordance with the regulations in force on the date it was signed.
Since it came into force, the ICL has been characterized by constant increases above inflation. However, since September 2024, a change in trend has been evident , after which the increase in the adjustment by which the rental agreements signed under the law must increase has slowed down.
On the other hand, the agreements made after the update of the regulations in October 2023 also remain in force until December 29. Although these will have their third adjustment, under the Casa Propia index , in March 2025.
Rent increase according to each index
Adjustment by ICL
In January, contracts signed in the same month in 2023 will experience a second and final year-on-year increase of 174.42% , more than 15 percentage points less than those recorded in January (190.69%), according to data collected by the Central Bank of the Argentine Republic (BCRA).In concrete numbers, if a tenant pays a rent of $400,000 , starting next month and for the following 12 months he will have to pay $1,097,663 , while the one who pays $600,000 will pay $1,646,494 per month. A key fact to keep in mind is that the ICL varies on a daily basis , so the increase will depend on the day of the month in which the contract was signed to apply the corresponding adjustment.
Contracts signed in February 2023 under the rental law with adjustment by the ICL will suffer a second and final year-on-year increase of 174.42%
Adjustment after the repeal of the rental law
A separate analysis is required for those who closed their rental agreement after the repeal of the regulations, that is, after December 29, 2023. In these cases, the situation is different: freedom was established between the parties when defining the index and the term of the contract and the adjustment. In any case, most of the negotiations were closed with quarterly updates based on the Consumer Price Index (CPI) , which is directly adjusted for inflation : in this case, for those who have had their rent “frozen” since November, they will face an increase in February of 8.03% .
For example , if a quarterly adjustment was agreed upon , for a rent of $500,000 started in November 2024, which must be adjusted in February, the last index published by Indec is for December 2024, so the value to be paid would be $540,139.42 .
“In recent years, up until December, we had contracts that were adjusted every year based on the ICL, which generated the automatic reaction of trying to cover ourselves and, consequently, inflating the initial prices a lot. Today, the scheme is more consistent with the Argentine economic reality: more periodic updates that mean that this need for coverage, of putting money into uncertainty, is no longer there ,” analyzed Federico González Rouco, an economist specializing in housing.
The values that are handled today in the market tend to be lower than those of the current contracts.Fabian Marelli
What happens to contracts that end?
In the first month of the year , the contracts that were agreed upon in the same month of 2022 will end. These were signed for the rental law: for three years and with annual adjustments under the ICL .Now, the market outlook is different : rental contracts began to be negotiated freely by the parties , with adjustments every three or four months , in pesos and tied to inflation . Therefore, both tenants who terminate their agreements and those who chose to terminate them, must agree on the new contract under these conditions.
However, a key fact to bear in mind is that the values currently being handled in the market tend to be lower than the prices paid by tenants under contract. This is because a gap was created between the adjustment of the ICL and the rental prices of new contracts .
In concrete numbers, rental listing prices in December 2024 increased by 64.4% (the latest reported so far) compared to the same month last year, according to data provided by Zonaprop . Despite this increase, contracts adjusted under the ICL , which measures inflation and wages (with a two-month delay) rose by 174.42% annually in the same month. This increase is considerably higher than the Consumer Price Index (CPI) , which grew by 117.8% in the same period. The latter is the reference taken today to update rental values. In other words, it ends up being “cheaper” to start a new contract than to maintain the one that is adjusted with the ICL .
“The new dynamics of the market after the repeal of the law means that cheaper options can now be found on the market,” says Soledad Balayán, owner of Maure Inmobiliaria.
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