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Rentals: the BCRA index falls to 39.32% and marks a historic low for contracts in force under the 2020 law - Ambito
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www.ambito.com
November 27, 2025
By Jose Luis Cieri
This figure will be applied in December and will be the final adjustment because all agreements under the repealed regulations will expire within a year. Post-DNU updates.
The adjustments to rental contracts for December through the ICL are now known; having a calculator in hand is key to applying the percentage to the corresponding amount.Pexels
Residential rental contracts still governed by the now-repealed 2020 Rental Law are projected to experience their lowest year-on-year increase in December 2025 since the creation of the Central Bank's Rental Contract Index (ICL) . This indicator, which fell below its 2021 low, offers significant relief to thousands of tenants and highlights the profound shift in the dynamics of the Argentine real estate market.
The ICL (Consumer Price Index) for the year-on-year update in December stands at 39.32% . This percentage represents the first time the index has fallen below the 41% recorded in July 2021, when the first adjustment under the Law was applied. Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, analyzed the figure. "This adjustment underscores the sharp slowdown in the ICL, driven mainly by lower inflation."
"Just remembering that in December 2023 we had a 25% INDEC CPI and now that figure is barely around 2%, that shows us and gives us the explanation for what has been happening with the ICL," Braña stated.
The ICL—which combines the variation in the Consumer Price Index (CPI) and the Average Taxable Remuneration of Stable Workers (RIPTE)—reflects the effects of high inflation with a lag. The component of the formula with the greatest impact on the decline was clearly inflation. The index reached a peak of 265.05% in July 2024, and a sharp decline began in September 2024.
For those who signed a contract under the repealed law and are due for an adjustment in December, the calculation is based on the previous value. A practical example of applying this final annual adjustment is as follows:
Braña pointed out that this significant drop in the ICL (Contract for Liquidity) over the last 16 months has narrowed the enormous gap that existed between the values of contracts under the repealed law and actual market or bid values. He elaborated: "Today there are cases where applying the 39% ICL adjustment to a contract about to expire can result in a value that is even 10% to 15% above the market or bid value."
The normalization of the market and the increase in the supply of rental properties are the backdrop to this new reality. Mariana Lupardo , from MML Real Estate, analyzed the figures. During October, price updates in listings showed significantly more moderate increases than those observed during much of the period following the repeal of the Rental Law.
Year-on-year, values grew by an average of 32.07% , a variation that approached the increase in the general price level (31.3%), Lupardo indicated. The fact that all product categories show year-on-year increases almost identical to the CPI confirms that the market has reached a new equilibrium point. "The expectation component—central in recent months—is losing weight, and the adjustment is increasingly explained by inflationary pressures and less by supply pressures," the expert explained.
The market returned to traditional operating parameters and supply expanded. "We went from having fewer than 500 properties for sale throughout the City of Buenos Aires in the last quarter of 2023 to having approximately 17,500 properties for sale now," explained Braña. The number of rental units was 15.13% higher than in October 2024, according to market data. This replenishment of the rental stock has acted as a natural limit to price acceleration and fosters a more competitive environment among landlords.
"It became common practice to maintain a two-year initial rental term, which is long enough to provide some stability for tenants since Decree 70/2023 came into effect," Pantano explained. He added that this format is occurring "in a rental market that, while more stable and with a greater number of listings, has not yet achieved the level of confidence of an economy without inflation and with legal certainty."
When asked about the use of indices, Pantano commented that the ICL remains the main benchmark, although the use of the CPI is growing. "We go through several stages, and sometimes one system is more suitable than the other. We always try to advise clients to find a system that maintains a balance; that's what the ICL was designed for—it combines two indices, one that measures inflation and another that reflects wage growth."
The increased supply has led to a change in tenant behavior, with tenants now extending their search periods. Pantano interpreted this behavior, stating, "There is a large supply of rental properties available today, especially residential ones, so tenants are advised to conduct a more thorough search and carefully analyze the advantages of each option."
A couple inquires about mortgage loans. There are thousands of renters who long to become homeowners.Pexels
The recovery of the traditional rental market suggests stability. Pantano explained: "We have indeed seen a greater supply of traditional rental properties, which provides more stability for tenants and less drastic adjustments. We hope this trend will continue and even improve if inflation continues to fall and wages improve."
Finally, the FIRA survey establishes average benchmark value indicators for the interior of the country:
Unit Type: 1-bedroom apartment.
Estimated National Average Value (December 2025): $400,000.
Unit Type: 1-bedroom apartment.
Estimated National Average Value (December 2025): $570,000.
Unit Type: 2-bedroom house.
Estimated National Average Value (December 2025): $750,000.
Regarding the role of mortgage loans , the president of FIRA was emphatic. "Mortgage loans accessible to those with salaries are an indispensable tool for the growth of the real estate market, both for first-time home purchases and for properties that can be added to the rental market," she stated.
While there have been inquiries about mortgage loans, the number of completed transactions remains low nationwide. Pantano detailed the persistent obstacles. "Many mortgage transactions have been finalized this year, but political uncertainty and rising interest rates are causing many to put their plans on hold. Argentina needs mortgage loans with reasonable rates and installments as a tool for accessing housing," he concluded.
www.buysellba.com
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Alquileres: el índice del BCRA cae a 39,32% y marca un mínimo histórico para contratos vigentes de la ley de 2020
Esta cifra se aplicará en diciembre y será el último ajuste porque en un año finalizarán todos los acuerdos bajo la normativa derogada. Actualizaciones post DNU.
www.ambito.com
November 27, 2025
By Jose Luis Cieri
This figure will be applied in December and will be the final adjustment because all agreements under the repealed regulations will expire within a year. Post-DNU updates.
The adjustments to rental contracts for December through the ICL are now known; having a calculator in hand is key to applying the percentage to the corresponding amount.Pexels
Residential rental contracts still governed by the now-repealed 2020 Rental Law are projected to experience their lowest year-on-year increase in December 2025 since the creation of the Central Bank's Rental Contract Index (ICL) . This indicator, which fell below its 2021 low, offers significant relief to thousands of tenants and highlights the profound shift in the dynamics of the Argentine real estate market.
The ICL (Consumer Price Index) for the year-on-year update in December stands at 39.32% . This percentage represents the first time the index has fallen below the 41% recorded in July 2021, when the first adjustment under the Law was applied. Alejandro Braña , a real estate expert and member of the Buenos Aires Real Estate Association, analyzed the figure. "This adjustment underscores the sharp slowdown in the ICL, driven mainly by lower inflation."
"Just remembering that in December 2023 we had a 25% INDEC CPI and now that figure is barely around 2%, that shows us and gives us the explanation for what has been happening with the ICL," Braña stated.
The ICL—which combines the variation in the Consumer Price Index (CPI) and the Average Taxable Remuneration of Stable Workers (RIPTE)—reflects the effects of high inflation with a lag. The component of the formula with the greatest impact on the decline was clearly inflation. The index reached a peak of 265.05% in July 2024, and a sharp decline began in September 2024.
For those who signed a contract under the repealed law and are due for an adjustment in December, the calculation is based on the previous value. A practical example of applying this final annual adjustment is as follows:
- Contract: Annual (Law 27.551).
- Previous Value (until Nov. 2025): $400,000.
- ICL Adjustment (Dec. 2025): +39.32%.
- New Monthly Value (Dec. 2025): $557,280.
Braña pointed out that this significant drop in the ICL (Contract for Liquidity) over the last 16 months has narrowed the enormous gap that existed between the values of contracts under the repealed law and actual market or bid values. He elaborated: "Today there are cases where applying the 39% ICL adjustment to a contract about to expire can result in a value that is even 10% to 15% above the market or bid value."
Market normalization and the new Post-DNU adjustment scheme
While older contracts are entering their final stage under the ICL (as all 2023 agreements will expire in December 2026), new rental agreements, governed by Decree 70/2023, are consolidating their quarterly, four-monthly, or semi-annual indexation scheme. Taking as an example an initial rent of $400,000 for a new contract with variable terms, the adjustments applied for December, typically based on the ICL, are as follows:- Adjustment Frequency: Quarterly
- Adjustment Percentage: +6.01%.
- New Monthly Value: $424,040.
- Adjustment Frequency: Quarterly
- Adjustment Percentage: +8.08%.
- New Monthly Value: $432,320.
- Adjustment Frequency: Semi-annually
- Adjustment Percentage: +14.17%.
- New Monthly Value: $456,680.
The normalization of the market and the increase in the supply of rental properties are the backdrop to this new reality. Mariana Lupardo , from MML Real Estate, analyzed the figures. During October, price updates in listings showed significantly more moderate increases than those observed during much of the period following the repeal of the Rental Law.
Year-on-year, values grew by an average of 32.07% , a variation that approached the increase in the general price level (31.3%), Lupardo indicated. The fact that all product categories show year-on-year increases almost identical to the CPI confirms that the market has reached a new equilibrium point. "The expectation component—central in recent months—is losing weight, and the adjustment is increasingly explained by inflationary pressures and less by supply pressures," the expert explained.
The market returned to traditional operating parameters and supply expanded. "We went from having fewer than 500 properties for sale throughout the City of Buenos Aires in the last quarter of 2023 to having approximately 17,500 properties for sale now," explained Braña. The number of rental units was 15.13% higher than in October 2024, according to market data. This replenishment of the rental stock has acted as a natural limit to price acceleration and fosters a more competitive environment among landlords.
Outlook: terms, indices and the need for more credit
Josefina Pantano , president of the Real Estate Federation of the Argentine Republic (FIRA), analyzed the format that the new contracting took and the stability of the sector."It became common practice to maintain a two-year initial rental term, which is long enough to provide some stability for tenants since Decree 70/2023 came into effect," Pantano explained. He added that this format is occurring "in a rental market that, while more stable and with a greater number of listings, has not yet achieved the level of confidence of an economy without inflation and with legal certainty."
When asked about the use of indices, Pantano commented that the ICL remains the main benchmark, although the use of the CPI is growing. "We go through several stages, and sometimes one system is more suitable than the other. We always try to advise clients to find a system that maintains a balance; that's what the ICL was designed for—it combines two indices, one that measures inflation and another that reflects wage growth."
The increased supply has led to a change in tenant behavior, with tenants now extending their search periods. Pantano interpreted this behavior, stating, "There is a large supply of rental properties available today, especially residential ones, so tenants are advised to conduct a more thorough search and carefully analyze the advantages of each option."
A couple inquires about mortgage loans. There are thousands of renters who long to become homeowners.Pexels
The recovery of the traditional rental market suggests stability. Pantano explained: "We have indeed seen a greater supply of traditional rental properties, which provides more stability for tenants and less drastic adjustments. We hope this trend will continue and even improve if inflation continues to fall and wages improve."
Finally, the FIRA survey establishes average benchmark value indicators for the interior of the country:
Unit Type: 1-bedroom apartment.
Estimated National Average Value (December 2025): $400,000.
Unit Type: 1-bedroom apartment.
Estimated National Average Value (December 2025): $570,000.
Unit Type: 2-bedroom house.
Estimated National Average Value (December 2025): $750,000.
Regarding the role of mortgage loans , the president of FIRA was emphatic. "Mortgage loans accessible to those with salaries are an indispensable tool for the growth of the real estate market, both for first-time home purchases and for properties that can be added to the rental market," she stated.
While there have been inquiries about mortgage loans, the number of completed transactions remains low nationwide. Pantano detailed the persistent obstacles. "Many mortgage transactions have been finalized this year, but political uncertainty and rising interest rates are causing many to put their plans on hold. Argentina needs mortgage loans with reasonable rates and installments as a tool for accessing housing," he concluded.
www.buysellba.com
