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Rents: What increases will there be for contracts adjusted in August 2025? - La Nacion Propiedades
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www.lanacion.com.ar
July 31, 2025
Lease agreements adjusted in August will receive a new increase in their monthly rent; what is the increase for each contract?
The increase in rental contracts will depend on the time at which the agreement was signed.
In the eighth month of the year, current rental contracts will face a new monthly increase. It is important to clarify that the increase will depend on the type of rental agreement signed, as three types of contracts currently remain in effect: those signed under the rental law, those signed after its update, and those signed after the repeal of the regulations.
The characteristics of each modality are the following:
For the August 2025 adjustment , contracts signed under the law repealed in 2020 and renewed in 2023 will face a second and final year-on-year increase (since they will expire in 2026) of 55.67% , the lowest rate in almost three years and almost 11 percentage points lower than last month ( 66.11% in June). The last record below this threshold was September 2022, when the ICL climbed 64.67%.
According to specialists , the main reason for this moderation is the slowdown in inflation .
In concrete terms, if a tenant pays $400,000 in rent, they will have to pay $622,690 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $934,035 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.
ICL adjustments continue to slow down in their monthly adjustments.
Lee Charlie - Shutterstock
In most cases, the agreements include quarterly or 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 August increase will be calculated using the latest index published by INDEC (National Institute of Statistics and Census) (June 2025), so the increase will be 4.82% . In concrete terms: if the initial rent was $600,000 , the new amount payable in June will be approximately $628,892 . If the rent is $800,000 , the new amount will be $838,522 .
In August, two types of contracts will be updated: those adjusted by ICL and those adjusted with agreements after the repeal of the law.Rent
Now, the market outlook is different : rental contracts have begun to be agreed upon through free negotiation 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 in the ICL and the rental prices of new contracts , although that gap has now narrowed due to the slowdown in inflation.
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Source:
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www.lanacion.com.ar
July 31, 2025
Lease agreements adjusted in August will receive a new increase in their monthly rent; what is the increase for each contract?
The increase in rental contracts will depend on the time at which the agreement was signed.
In the eighth month of the year, current rental contracts will face a new monthly increase. It is important to clarify that the increase will depend on the type of rental agreement signed, as three types of contracts currently remain in effect: those signed under the rental law, those signed after its update, and those signed after the repeal of the regulations.
The characteristics of each modality are the following:
- Those signed under the rental law: have annual adjustments based on the Rental Contract Index (ICL)
- Those who did so after the regulation update - in October 2023 -: with semiannual adjustments by Casa Propia
- Those agreed upon after the repeal of the law - on December 29, 2023 - with contractual freedom between the parties
Rent increases in August
By ICL
The Lease Contract Index , published monthly by the Central Bank, was one of the major drivers of the rental market in 2023 and much of 2024. After reaching a peak of 265% year-on-year in July 2024, the ICL's dynamics experienced a change in trend starting in September of the same year, with increasingly moderate increases.For the August 2025 adjustment , contracts signed under the law repealed in 2020 and renewed in 2023 will face a second and final year-on-year increase (since they will expire in 2026) of 55.67% , the lowest rate in almost three years and almost 11 percentage points lower than last month ( 66.11% in June). The last record below this threshold was September 2022, when the ICL climbed 64.67%.
According to specialists , the main reason for this moderation is the slowdown in inflation .
In concrete terms, if a tenant pays $400,000 in rent, they will have to pay $622,690 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $934,035 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.
ICL adjustments continue to slow down in their monthly adjustments.
Lee Charlie - Shutterstock
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 or 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 August increase will be calculated using the latest index published by INDEC (National Institute of Statistics and Census) (June 2025), so the increase will be 4.82% . In concrete terms: if the initial rent was $600,000 , the new amount payable in June will be approximately $628,892 . If the rent is $800,000 , the new amount will be $838,522 .
By Own House
It is important to clarify that the contracts signed for the Home Ownership Index will not increase in the eighth month of the year , as this adjustment was in effect for less than three months.
In August, two types of contracts will be updated: those adjusted by ICL and those adjusted with agreements after the repeal of the law.Rent
What happens to contracts that end in August?
In August, contracts will also expire. These are the ones agreed upon in the same month of 2022 and signed under the rental law: for three years and with annual adjustments under the ICL .Now, the market outlook is different : rental contracts have begun to be agreed upon through free negotiation 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 in the ICL and the rental prices of new contracts , although that gap has now narrowed due to the slowdown in inflation.
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