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Contracts in force under the Rental Law: what will be the October update? - Ambito Financiero
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www.ambito.com
September 23, 2025
By Jose Luis Cieri
The rental dynamics in the real estate market have changed. The Lease Contract Index (ICL), values in post-DNU contracts, continues to decline.
Those with current agreements under the repealed Rental Law will face the smallest adjustment since August 2021. The ICL has been declining for more than a year. Depositphotos
The rental dynamics in the real estate market have changed. Supply has increased, and the Lease Contract Index (ICL) continues to decline, with another downward adjustment in October. To find a lower or similar update rate to this month's 46.13% annual rate, we must go back four years: in August 2021, the Central Bank index stood at 44.55%, and it was not until September of that year that it rose above the current level, at 47.06%.
The October figure represents the lowest year-on-year update since then, a far cry from the peaks experienced in 2024, when the ICL exceeded 200% and put pressure on tenants like never before ( even signing a new contract requires challenging numbers ). Now, for a contract in force under the 2020 Rental Law, a three-room apartment that until September cost $300,000 per month will increase to $438,390, an amount that will be paid between October 2025 and September 2026, when the agreement concludes.
The statistic is not insignificant. In November 2021, the ICL stood at 49.53%, and in December it climbed to 51.38%. In October of that same year, it was 48.57%. These are the lowest figures that can be compared with the present, which shows the change in trend.
José Rozados , of Reporte Inmobiliario, provided a complementary perspective based on hard market data. “In August and September, the rental market in Buenos Aires City once again showed signs of stabilization. While listing prices registered new increases, these remained at more moderate levels than in previous months. The average year-over-year increase was between 32% and 41%, depending on the type of property, figures close to the general inflation rate,” he noted.
According to the consulting firm's survey, studio apartments remained at $450,000, one-bedroom apartments increased by 3.8% monthly to $550,000, two-bedroom apartments increased by 3.2% to $727,500, and three-bedroom apartments increased by just 0.8%, reaching $957,500.
Two-bedroom apartments range from $720,000, on average, for new deals.
Rozados added: "These variations, very similar to the price evolution of the economy in general, consolidate a process of convergence after years of severe distortions resulting from the impositions of the Rental Law, repealed at the end of 2023."
Braña added: “Today, competition is so great that tenants take weeks or even months to choose their future home because they know they can afford it. Fortunately, the nightmare we've been enduring since mid-2020 is behind us.”
The city's supply is a prime example. It went from fewer than 500 available units in December 2023 to nearly 20,000 today. This abrupt leap eliminated the practice of "unlisted" rentals and off-market prices, because the abundance of options forces owners and real estate agents to negotiate.
Rozados agreed that the increased availability of traditional rental units is one of the factors behind the slowdown in listing prices. "The growth in inventory generates more competition among owners and a framework of predictability that hasn't been seen in recent years," he stated.
By having a greater offer, owners and tenants can negotiate better to be able to make a new rental contract.
Altgelt added that the currency is also beginning to play a role. “Many owners who previously rented in dollars had switched to the peso because the dollar was lagging behind. Perhaps now, with this small devaluation, some will once again want the dollar as a strong currency, especially in more premium properties. And in that segment, tenants accept it and even prefer it, because they perceive greater certainty in the prices,” he noted.
Furthermore, the expert projected that next year, in 2026, the residual effect of contracts still governed by the defunct Rental Law will end. From then on, most agreements will fall under the umbrella of the DNU, which could consolidate a more stable and predictable scenario.
The rental market has moved from a rigid and distorted environment to one with greater competition, abundant supply, and opportunities for negotiation. The lowering of the ICL (Income Tax) has served as a respite, although purchasing power and the burden of expenses remain a key challenge. Braña concluded: "Rentals are no longer a nightmare and have become a competitive market, where both landlords and tenants know they have to negotiate."
www.buysellba.com
Source:
Contratos vigentes por la Ley de Alquileres: cuál será la actualización de octubre
Se modificó la dinámica del alquiler en el mercado inmobiliario. Sigue el descenso del Índice de Contratos de Locación (ICL), valores en contratos post DNU.
www.ambito.com
September 23, 2025
By Jose Luis Cieri
The rental dynamics in the real estate market have changed. The Lease Contract Index (ICL), values in post-DNU contracts, continues to decline.
Those with current agreements under the repealed Rental Law will face the smallest adjustment since August 2021. The ICL has been declining for more than a year. Depositphotos
The rental dynamics in the real estate market have changed. Supply has increased, and the Lease Contract Index (ICL) continues to decline, with another downward adjustment in October. To find a lower or similar update rate to this month's 46.13% annual rate, we must go back four years: in August 2021, the Central Bank index stood at 44.55%, and it was not until September of that year that it rose above the current level, at 47.06%.
The October figure represents the lowest year-on-year update since then, a far cry from the peaks experienced in 2024, when the ICL exceeded 200% and put pressure on tenants like never before ( even signing a new contract requires challenging numbers ). Now, for a contract in force under the 2020 Rental Law, a three-room apartment that until September cost $300,000 per month will increase to $438,390, an amount that will be paid between October 2025 and September 2026, when the agreement concludes.
From then on, negotiations will no longer be conducted under the old rules , but within the framework of Decree 70/2023, which established a more flexible regime regarding deadlines and frequency of adjustments.The ICL in perspective
The decline in the ICL continues to worsen month after month. In September, the updated index had been 50.36%, and compared to that level, the fall in October feels like a relief for thousands of renters. "This index has been falling sharply and steadily for over a year now, reaching its peak in July 2024 at 265.05%. It has registered a drop of 140% since the beginning of 2025 and a no less than 215% since July 2024," explained Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association.The statistic is not insignificant. In November 2021, the ICL stood at 49.53%, and in December it climbed to 51.38%. In October of that same year, it was 48.57%. These are the lowest figures that can be compared with the present, which shows the change in trend.
The stabilization of values
José Rozados , of Reporte Inmobiliario, provided a complementary perspective based on hard market data. “In August and September, the rental market in Buenos Aires City once again showed signs of stabilization. While listing prices registered new increases, these remained at more moderate levels than in previous months. The average year-over-year increase was between 32% and 41%, depending on the type of property, figures close to the general inflation rate,” he noted.
According to the consulting firm's survey, studio apartments remained at $450,000, one-bedroom apartments increased by 3.8% monthly to $550,000, two-bedroom apartments increased by 3.2% to $727,500, and three-bedroom apartments increased by just 0.8%, reaching $957,500.
Two-bedroom apartments range from $720,000, on average, for new deals.
Rozados added: "These variations, very similar to the price evolution of the economy in general, consolidate a process of convergence after years of severe distortions resulting from the impositions of the Rental Law, repealed at the end of 2023."
The market after the repeal of the law
The repeal of the Rental Law at the end of 2023, through the Government's Decree, fundamentally changed the way the sector operates. With shorter terms, quarterly, four-monthly, or half-yearly adjustments, and the freedom to choose the reference index (ICL or CPI, among others), the market regained a dynamism it had lost.Braña added: “Today, competition is so great that tenants take weeks or even months to choose their future home because they know they can afford it. Fortunately, the nightmare we've been enduring since mid-2020 is behind us.”
The city's supply is a prime example. It went from fewer than 500 available units in December 2023 to nearly 20,000 today. This abrupt leap eliminated the practice of "unlisted" rentals and off-market prices, because the abundance of options forces owners and real estate agents to negotiate.
Rozados agreed that the increased availability of traditional rental units is one of the factors behind the slowdown in listing prices. "The growth in inventory generates more competition among owners and a framework of predictability that hasn't been seen in recent years," he stated.
The adjustments under the DNU
In parallel with the contracts still governed by the old law, those already agreed upon under the new regime will coexist. The following details the ICL updates that will apply to a contract that initially had a monthly value of $400,000 and is due to be adjusted starting in October 2025:- Quarterly : With a 6.61% adjustment , the rent of $400,000 will increase to $426,440 .
- Quarterly : With a 10.12% adjustment , the rent of $400,000 will increase to $440,480 .
- Semi-annual : With an 18.49% adjustment , the rent of $400,000 will rise to $473,960 .
What is convenient
Francisco Altgelt , president of Altgelt Negocios Inmobiliarios, noted that most contracts are better aligned with the CPI than the ICL. He explained: "Until now, the market has been using quarterly updates based more on the CPI than the ICL index. And that way, both parties, both the tenant and the owner, feel comfortable," he explained.
By having a greater offer, owners and tenants can negotiate better to be able to make a new rental contract.
Altgelt added that the currency is also beginning to play a role. “Many owners who previously rented in dollars had switched to the peso because the dollar was lagging behind. Perhaps now, with this small devaluation, some will once again want the dollar as a strong currency, especially in more premium properties. And in that segment, tenants accept it and even prefer it, because they perceive greater certainty in the prices,” he noted.
More competitive
Tenants' price resistance has led landlords to adopt new strategies. Discounts on already signed contracts, renegotiations, and short-term rent adjustments in pesos are part of the current menu. "The market is trying to find a new balance between supply and demand," Braña emphasized.Furthermore, the expert projected that next year, in 2026, the residual effect of contracts still governed by the defunct Rental Law will end. From then on, most agreements will fall under the umbrella of the DNU, which could consolidate a more stable and predictable scenario.
The rental market has moved from a rigid and distorted environment to one with greater competition, abundant supply, and opportunities for negotiation. The lowering of the ICL (Income Tax) has served as a respite, although purchasing power and the burden of expenses remain a key challenge. Braña concluded: "Rentals are no longer a nightmare and have become a competitive market, where both landlords and tenants know they have to negotiate."
www.buysellba.com
