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Rents: How Much Will They Rise in June Adjustments? - La Nacion Propiedades
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May 30, 2025
Rents: How much will they increase for those who have the adjustment in June?
There are three types of contracts that will be updated in the sixth month of the year: how much your rent could be for the next few months
The increase in rent will depend on the time at which the lease was signed and the index with which the adjustment was set.Shutterstock - Shutterstock
On June 1, rental contracts with scheduled adjustments for that month will face a new price increase . However, it's important to clarify that three types of contracts currently exist:
- Those that were signed under the rental law , with annual adjustments by the Rental Contract Index (ICL)
- Those who did so after the regulation update - in October 2023 -, with semi-annual adjustments by Casa Propia
- Those agreed upon after the law was repealed on December 29, 2023, with contractual freedom between the parties.
Therefore, the increase will depend on each person's index .
Along these lines, one of the most controversial updates is that of the annual agreements adjusted by ICL . These were signed in June 2023 , and in the sixth month of the year they will face their final increase, as they were made for three years and with annual increases, under the then-current rental law. They must be renewed in June 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 force, it has been characterized by constant increases above inflation , even reaching 265% in July 2024. However, since September of that year, a change in trend has been evident , from which the increase in the adjustment slowed down .
The ICL increase in June reached 80.65%.Wasan Tita - Shutterstock
The increase according to each contract
By ICL
In June 2025, contracts signed in the same month in 2023 will suffer a second and final year-on-year increase (since they will end in 2026) of 80.65% , 15 percentage points less than those registered in May ( 95.24% ), 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 $722,581 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $1,083,871 per month. A key factor to keep in mind is that the ICL (tax-based property 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 House
It's worth noting that in June, rental agreements signed under the updated law —those agreed between October 17 and December 29, 2023—will also be adjusted. These are adjusted semiannually and based on the Casa Propia coefficient , which in June will be around 48.44% (this value is approximate, as the corresponding coefficient has not yet been published).For example, in December 2023, the average rent for a two-bedroom apartment in Buenos Aires was $334,888, according to Zonaprop. If that tenant had started the contract on December 1, 2023, under the law , they would have to pay the third updated Casa Propia adjustment of $1,298,908 on June 1, 2025 .
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) .
Thus, 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) - April 2025 -, so the increase will be 9.58% . In concrete terms: if the initial rent was $500,000 , the new amount payable in June will be approximately $547,889 . If the rent is $800,000 , the new amount will rise to $876,622 .
New rental contracts tend to close every three or four months and are adjusted for CPI. Gentleness
What happens to contracts that are ending?
In the sixth 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 have begun to be negotiated freely between the parties , for two years with adjustments every three or four months , in pesos and tied to inflation . Therefore, both tenants who terminate their agreements and those who choose to continue 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 April 2025 increased by 44.6% (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 80.65% annually in the same month. This increase is considerably higher than the Consumer Price Index (CPI) , which grew 47.3% 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 ).
In concrete terms, based on data from the City of Buenos Aires, a studio apartment with 40 m² rents for $527,566 on average; a one-bedroom apartment with 50 m² rents for $622,309 ; while a two-bedroom apartment with 70 m² rents for $836,751 per month.
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