BuySellBA
Administrator
How much will the rent increase in May 2025 according to the index with which you closed the contract? - La Nacion Propiedades
Source:
www.lanacion.com.ar
May 08, 2025
The increase will depend on the index under which the contract was signed: ICL, Casa Propia, or CPI; the increase will depend on how much each index will increase.
Currently, three types of rental contracts coexist at the same time with adjustments to different indexes.Rawpixel.com - Shutterstock
On May 1, rental contracts will receive a new increase for those whose agreements are adjusted that month. Currently, three types of contracts remain : those signed under the rental law , those signed after the regulations were updated in October 2023, and those signed after the law's repeal . Therefore, the increase will depend on the rate for each contract.
In this way, one of the updates is calculated based on agreements signed in May 2023 and adjusted by the ICL (Lease Contract Index). These will undergo their final increase this new month , as they were made for three years with annual increases, under the then-current rental law. They must be renewed in 2026, at which point tenants and landlords can set new conditions or terminate them.
The ICL is published by the Central Bank and, since it came into effect, has been characterized by constant increases above inflation . However, since September 2024, a change in trend has been evident , as the increase in the adjustment has slowed . Furthermore, the fifth month of the year marks a paradigm shift: after three years, for the first time, the increase is below 100% .
In concrete terms, if a tenant pays $400,000 in rent, they will have to pay $780,952 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $1,171,440 per month. A key factor to keep in mind is that the ICL (Income Tax) varies daily , so the increase will depend on the day of the month on which the contract was signed, in order to apply the corresponding adjustment.
For example, in November 2023, the average rent for a two-bedroom apartment in Buenos Aires was $282,389, according to Zonaprop. If that tenant had started the contract on November 1, 2023, under the law , they would have to pay the third updated Casa Propia adjustment of $1,136,693 on May 1, 2025 .
The contracts that were agreed with Casa Propia will receive their third increase Gentleness
In most cases, the agreements include quarterly and four-monthly updates based on inflation as measured by the Consumer Price Index (CPI) .
For those who signed contracts with a three-monthly adjustment, the May increase will be calculated using the latest index published by INDEC (National Institute of Statistics and Census) - March 2025 -, so the increase will be 11.51% . In concrete terms: if the initial rent was $500,000 , the new amount due in March will be approximately $557,525 . If the rent is $800,000 , the new amount will rise to $892,040 .
Now, the market outlook is different : rental contracts are now being negotiated freely between 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 opted to cancel them must agree to the new contract under these conditions.
However, a key fact to keep in mind is that current market prices tend to be lower than the prices tenants are paying under contract. This is because a gap has developed between the adjustment of the ICL and the rental prices of new contracts .
In concrete numbers, rental listing prices in March 2025 increased by 43.2% (the latest reported so far) compared to the same month last year, according to data provided by Zonaprop .
Despite this increase, contracts adjusted according to the ICL ( Income Price Index), which measures inflation and wages (with a two-month lag), rose 95.24% annually in the same month. This increase is considerably higher than the Consumer Price Index (CPI) , which grew 55.9% in the same period. The latter is the reference used today to update rental values. In other words, it ends up being "cheaper" to start a new contract than to maintain the one adjusted according to the ICL ( Income Price Index ).
"The new market dynamics following the repeal of the law mean that more affordable options can now be found," says Soledad Balayan, owner of Maure Inmobiliaria.
www.buysellba.com
Source:
Cuánto va a aumentar el alquiler en mayo 2025 según el índice con el que cerraste el contrato
El incremento dependerá del índice bajo el que se firmó el contrato: ICL, Casa Propia o IPC; de cuánto será el incremento en cada uno
www.lanacion.com.ar
May 08, 2025
The increase will depend on the index under which the contract was signed: ICL, Casa Propia, or CPI; the increase will depend on how much each index will increase.
Currently, three types of rental contracts coexist at the same time with adjustments to different indexes.Rawpixel.com - Shutterstock
On May 1, rental contracts will receive a new increase for those whose agreements are adjusted that month. Currently, three types of contracts remain : those signed under the rental law , those signed after the regulations were updated in October 2023, and those signed after the law's repeal . Therefore, the increase will depend on the rate for each contract.
In this way, one of the updates is calculated based on agreements signed in May 2023 and adjusted by the ICL (Lease Contract Index). These will undergo their final increase this new month , as they were made for three years with annual increases, under the then-current rental law. They must be renewed in 2026, at which point tenants and landlords can set new conditions or terminate them.
The ICL is published by the Central Bank and, since it came into effect, has been characterized by constant increases above inflation . However, since September 2024, a change in trend has been evident , as the increase in the adjustment has slowed . Furthermore, the fifth month of the year marks a paradigm shift: after three years, for the first time, the increase is below 100% .
This will be the increase according to each contract
By ICL:
In May 2025,The contracts signed in the same month in 2023 will suffer a second and final year-on-year increase (since they will end in 2026 and the new contract will have to be agreed upon again under the current market conditions) of 95.24% , almost 21 percentage points less than those registered in April ( 116.85% ), according to data collected by the Central Bank of the Argentine Republic (BCRA).In concrete terms, if a tenant pays $400,000 in rent, they will have to pay $780,952 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $1,171,440 per month. A key factor to keep in mind is that the ICL (Income Tax) varies daily , so the increase will depend on the day of the month on which the contract was signed, in order to apply the corresponding adjustment.
By Own Home:
It's worth noting that in May, rental agreements signed under the updated law —those agreed upon from October 17 to December 29, 2023—will also be adjusted. These are adjusted semiannually and based on the Casa Propia coefficient , which in May will be around 56.7% (this value is approximate, as the corresponding coefficient has not yet been published).For example, in November 2023, the average rent for a two-bedroom apartment in Buenos Aires was $282,389, according to Zonaprop. If that tenant had started the contract on November 1, 2023, under the law , they would have to pay the third updated Casa Propia adjustment of $1,136,693 on May 1, 2025 .
The contracts that were agreed with Casa Propia will receive their third increase Gentleness
By CPI:
Starting December 29, 2023 , with the repeal of the rental law, contracts began to be freely agreed upon between the parties . This means that landlords and tenants can freely agree on the duration of the contract, the frequency of adjustments, and the index to be used.In most cases, the agreements include quarterly and four-monthly updates based on inflation as measured by the Consumer Price Index (CPI) .
For those who signed contracts with a three-monthly adjustment, the May increase will be calculated using the latest index published by INDEC (National Institute of Statistics and Census) - March 2025 -, so the increase will be 11.51% . In concrete terms: if the initial rent was $500,000 , the new amount due in March will be approximately $557,525 . If the rent is $800,000 , the new amount will rise to $892,040 .
What happens to contracts that are ending?
In the fifth month of the year, contracts agreed upon in the same month of 2022 will expire. These were signed under the rental law: for three years and with annual adjustments under the ICL (Income Tax ).Now, the market outlook is different : rental contracts are now being negotiated freely between 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 opted to cancel them must agree to the new contract under these conditions.
However, a key fact to keep in mind is that current market prices tend to be lower than the prices tenants are paying under contract. This is because a gap has developed between the adjustment of the ICL and the rental prices of new contracts .
In concrete numbers, rental listing prices in March 2025 increased by 43.2% (the latest reported so far) compared to the same month last year, according to data provided by Zonaprop .
Despite this increase, contracts adjusted according to the ICL ( Income Price Index), which measures inflation and wages (with a two-month lag), rose 95.24% annually in the same month. This increase is considerably higher than the Consumer Price Index (CPI) , which grew 55.9% in the same period. The latter is the reference used today to update rental values. In other words, it ends up being "cheaper" to start a new contract than to maintain the one adjusted according to the ICL ( Income Price Index ).
"The new market dynamics following the repeal of the law mean that more affordable options can now be found," says Soledad Balayan, owner of Maure Inmobiliaria.
www.buysellba.com
