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In record decline after almost 4 years: How much will the current rental law adjust? - Ambito Financiero
Source:
www.ambito.com
August 28, 2025
By José Luis Cieri
In September, the agreements under the repealed regulation will be updated below inflation and far from the index's historical peaks.
Those with current rental contracts will adjust their agreement in September with the best percentage since 2021. Depositphotos
The rental segment of the real estate market is experiencing a turning point, marked by a new development that, while seen as a relief for tenants, is also a symptom of a more complex economic landscape. For contracts still governed by the defunct 2020 Rental Law, the September update stands at 50.36% , the lowest figure in the last four years and well below the peaks that exceeded 200% in early 2024 .
To find an adjustment percentage lower or similar to that of September 2025, we must go back almost four years. It was only in November 2021 that the Lease Contract Index (ICL, regulated by the Central Bank) was lower, as the annual adjustment at that time was 49.53% . Then, the following month, in December 2021, it was already somewhat higher, reaching 51.38%. Going back a little further, in October 2021 , the annual BCRA ICL was 48.57% , also quite close to the level that will be applied next month.
Therefore, a renting family that has been paying $400,000 per month for a two-bedroom apartment until next September will have to pay approximately $601,440 until their contract expires in August 2026.
Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, explained the phenomenon: "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 this year 2025; and of no less than 215% since July 2024."
He noted that the supply has multiplied in the City, going from fewer than 500 (in December 2023) to nearly 20,000 available properties. This put an end to "unpublished" rentals and the validation of exorbitant prices, as the market is now competitive and requires negotiation.
Two- and three-bedroom apartments among the most sought-after for rent
"Today, there isn't a single location that isn't being negotiated, whether the value, frequency, term, or even the index used for the adjustment," Braña asserted.
Owners are adapting to reality and even applying bonuses to already signed contracts, a practice unthinkable in the recent past. This new equilibrium is due to the fact that "the market is trying to find a new balance between supply and demand," he added.
One factor that aggravates the situation is the expenses. "Today, expenses are a serious financial burden for both owners and tenants ; they've grown uncontrollably," Braña emphasized. What used to represent between 5% and 15% of the rent can now amount to 50% or more, forcing owners to reduce the rental price to make the property attractive.
According to Scalese, the most sought-after areas for this type of unit are Belgrano and Núñez , due to their convenience to schools, sports activities, and transportation. As for features, tenants value the balcony and a kitchen connected to the living-dining room. The building's age isn't a priority; people prefer to renovate and add their own personal touch.
In addition to families and students, Scalese pointed to a third increasingly relevant tenant profile: those looking for a spacious apartment for their pets . "People looking for a spacious two-bedroom or two-bedroom apartment also do so with their pets in mind." According to the specialist, a major development is expected in this regard. "Very soon, there hasn't been a decree yet, but at any moment pets won't be banned in buildings. While other requirements will be required, it's something that people are very interested in."
"They also consider the cost of utilities. People looking for permanent housing look for utilities that are appropriate for the services they have, which is why they prefer utilities that don't have so many amenities," Scalese added.
"Next year, in 2026, the residual effect we still have today from contracts signed under the Rental Law, which were for a minimum term of 36 months with annual adjustments, will end," Braña explained. This means the rental market will enter a new phase, where most contracts will be governed by the DNU, which could further stabilize the situation.
The rental market has gone from being a "nightmare" to a scenario with greater supply and negotiable opportunities. However, the underlying problem persists, with limited purchasing power and rising rental costs, which continues to be a challenge for those looking for a home in Buenos Aires and most other parts of the country.
www.buysellba.com
Source:
En caída récord tras casi 4 años: de cuánto será el ajuste de contratos vigentes por la ley de Alquileres
En septiembre, los pactos de la derogada normativa tendrán una actualización que se ubica por debajo de la inflación y lejos de los picos históricos del índice.
www.ambito.com
August 28, 2025
By José Luis Cieri
In September, the agreements under the repealed regulation will be updated below inflation and far from the index's historical peaks.
Those with current rental contracts will adjust their agreement in September with the best percentage since 2021. Depositphotos
The rental segment of the real estate market is experiencing a turning point, marked by a new development that, while seen as a relief for tenants, is also a symptom of a more complex economic landscape. For contracts still governed by the defunct 2020 Rental Law, the September update stands at 50.36% , the lowest figure in the last four years and well below the peaks that exceeded 200% in early 2024 .
To find an adjustment percentage lower or similar to that of September 2025, we must go back almost four years. It was only in November 2021 that the Lease Contract Index (ICL, regulated by the Central Bank) was lower, as the annual adjustment at that time was 49.53% . Then, the following month, in December 2021, it was already somewhat higher, reaching 51.38%. Going back a little further, in October 2021 , the annual BCRA ICL was 48.57% , also quite close to the level that will be applied next month.
Therefore, a renting family that has been paying $400,000 per month for a two-bedroom apartment until next September will have to pay approximately $601,440 until their contract expires in August 2026.
Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, explained the phenomenon: "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 this year 2025; and of no less than 215% since July 2024."
The impact on rents
For contracts agreed upon under Decree 70/2023 and using other payment periods, the percentages are as follows. If the agreement is for an initial $500,000, the new amounts will be those published below through the ICL:- Quarterly: With a 7.70% adjustment, the rent of $500,000 will go to $538,500 .
- Quarterly: With a 12.19% adjustment, the rent of $500,000 will become $560,950 .
- Semiannual: With an 18.83% adjustment, the rent of $500,000 will increase to $594,150.
The "back and forth" that changed the market
The repeal of the Rental Law completely changed the landscape . Braña stated: "Today, competition is such 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."He noted that the supply has multiplied in the City, going from fewer than 500 (in December 2023) to nearly 20,000 available properties. This put an end to "unpublished" rentals and the validation of exorbitant prices, as the market is now competitive and requires negotiation.
Two- and three-bedroom apartments among the most sought-after for rent
"Today, there isn't a single location that isn't being negotiated, whether the value, frequency, term, or even the index used for the adjustment," Braña asserted.
Owners are adapting to reality and even applying bonuses to already signed contracts, a practice unthinkable in the recent past. This new equilibrium is due to the fact that "the market is trying to find a new balance between supply and demand," he added.
The problem of expenses and nominal value
Despite the increased supply and the opportunity for negotiation, tenant purchasing power is a key factor. Braña said: "It's logical for a tenant to look for the best value for their budget." Demand doesn't support certain prices, especially for larger units, and real estate agents and owners must adjust their expectations.One factor that aggravates the situation is the expenses. "Today, expenses are a serious financial burden for both owners and tenants ; they've grown uncontrollably," Braña emphasized. What used to represent between 5% and 15% of the rent can now amount to 50% or more, forcing owners to reduce the rental price to make the property attractive.
Search profiles and most searched areas
Agustina Scalese , of Girgola Inmobiliaria, shares her perspective on the market. "The majority of people looking for two-bedroom apartments are families with one or two children, but this type of apartment is also sought after by more than two students who come to Buenos Aires and are willing to share the apartment."According to Scalese, the most sought-after areas for this type of unit are Belgrano and Núñez , due to their convenience to schools, sports activities, and transportation. As for features, tenants value the balcony and a kitchen connected to the living-dining room. The building's age isn't a priority; people prefer to renovate and add their own personal touch.
In addition to families and students, Scalese pointed to a third increasingly relevant tenant profile: those looking for a spacious apartment for their pets . "People looking for a spacious two-bedroom or two-bedroom apartment also do so with their pets in mind." According to the specialist, a major development is expected in this regard. "Very soon, there hasn't been a decree yet, but at any moment pets won't be banned in buildings. While other requirements will be required, it's something that people are very interested in."
"They also consider the cost of utilities. People looking for permanent housing look for utilities that are appropriate for the services they have, which is why they prefer utilities that don't have so many amenities," Scalese added.
Market strategies and a future outlook
Faced with tenant price resistance, landlords and real estate agencies are adopting new strategies. Braña explains that renegotiations , discounts , and bonuses are being applied to existing contracts. Furthermore, new contracts are being offered in pesos, with 24-month terms and quarterly or four-monthly adjustments, using the CPI (Consumer Price Index) or the ICL as a reference ."Next year, in 2026, the residual effect we still have today from contracts signed under the Rental Law, which were for a minimum term of 36 months with annual adjustments, will end," Braña explained. This means the rental market will enter a new phase, where most contracts will be governed by the DNU, which could further stabilize the situation.
The rental market has gone from being a "nightmare" to a scenario with greater supply and negotiable opportunities. However, the underlying problem persists, with limited purchasing power and rising rental costs, which continues to be a challenge for those looking for a home in Buenos Aires and most other parts of the country.
www.buysellba.com
