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Rents: What increases will those contracts that increase in July 2025 face? - La Nacion Propiedades
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www.lanacion.com.ar
June 23, 2025
For tenants and landlords, understanding the applicable index will be key to knowing the increase in their rent.
Rental contracts will face a new increase in July.
Starting next Tuesday, July 1st , tenants and landlords will once again face an increase in monthly rent , depending on the type of contract. It is important to clarify that three types of contracts currently exist:
Therefore, the increase will depend on each person's index .
For the July 2025 adjustment, contracts signed under the law repealed in 2020 will face a second and final year-over-year increase (since they expire in 2026) of 66.11% , the lowest rate in almost three years and 14 percentage points lower than last month ( 80.65% 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 July 2025, the ICL will increase by 66.11%.Freepik - Image by Freepik
In concrete terms, if a tenant pays $400,000 in rent, they will have to pay $664,454 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $996,682 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.
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 July increase will be calculated using the latest index published by INDEC (National Institute of Statistics and Census) - May 2025 -, so the increase will be 5.89% . In concrete terms: if the initial rent was $600,000 , the new amount payable in June will be approximately $635,331 . If the rent is $800,000 , the new amount will rise to $847,108 .
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 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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Alquileres: ¿qué subas enfrentarán los contratos que aumentan en julio de 2025?
Para inquilinos y propietarios, comprender el índice aplicable será clave para conocer el aumento de su alquiler
www.lanacion.com.ar
June 23, 2025
For tenants and landlords, understanding the applicable index will be key to knowing the increase in their rent.
Rental contracts will face a new increase in July.
Starting next Tuesday, July 1st , tenants and landlords will once again face an increase in monthly rent , depending on the type of contract. It is 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 .
The increase according to each contract
ICL: the slowdown in the annual adjustment
The Leasehold 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 July 2025 adjustment, contracts signed under the law repealed in 2020 will face a second and final year-over-year increase (since they expire in 2026) of 66.11% , the lowest rate in almost three years and 14 percentage points lower than last month ( 80.65% 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 July 2025, the ICL will increase by 66.11%.Freepik - Image by Freepik
In concrete terms, if a tenant pays $400,000 in rent, they will have to pay $664,454 starting next month and continuing for the following 12 months , while someone paying $600,000 will have to pay $996,682 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 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 July increase will be calculated using the latest index published by INDEC (National Institute of Statistics and Census) - May 2025 -, so the increase will be 5.89% . In concrete terms: if the initial rent was $600,000 , the new amount payable in June will be approximately $635,331 . If the rent is $800,000 , the new amount will rise to $847,108 .
Increases for Own Home
It is important to clarify that the contracts signed for the Home Ownership Index will not increase in the seventh month of the year , since this adjustment worked for less than three months.What happens to contracts that end in July?
In July, 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 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 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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