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Rents: what will be the increase in contracts from February

2023-02-01T12:35:44.441Z


Those who entered the properties this month receive an increase tied to wages and inflation. The advance of inflation is directly reflected in the value of rentals. For this reason, those who signed their contracts in February are calculating how much they will have to pay starting this month.  As established by the rental law that has been in force since 2020, the increase in rentals occurs once a year : both after 12 months of signing the contract and after 24 months. At that time, all


The advance of inflation is directly reflected in the value of rentals.

For this reason, those who signed their contracts in February are calculating how much they will have to pay starting this month. 

As established by the rental law that has been in force since 2020, the increase in rentals

occurs once a year

: both after 12 months of signing the contract and after 24 months.

At that time, all tenants must pay an increase through a calculation that is made taking into account the average taxable compensation of stable workers (Ripte) and inflation (IPC).

The data adjusted to February 16 of this year (last official update), as indicated by Marta Liotto, head of the Association of Real Estate Professionals,

gives 87%

.

This means that if a person signed their contract on February 16, 2022 for

$45,000 , for example, they must pay

$84,250

as of the 16th of this month 

.

In other words, he will have had an increase of 87.2%.

For those who had to do it in January, the rise was 81%.

Despite the strong impact on the pockets of those who do not own the place where they live, these increases are still

below general inflation since the interannual rise of the CPI (January 2022 vs. January of this year) practically reaches 99 %.

Regarding what happened during 2022, according to the surveys of the Zonaprop real estate advertisements platform, in the City of Buenos Aires the increase in rents

reached 98.2%

, above inflation of 94.8% and also of the adjustment level of the contracts.

On the other hand,

in Greater Buenos Aires, prices were slightly lower

: 71.2% in the North GBA and 83% in the West and South GBA.

According to the analysis of the University of San Andrés on the basis of Mercado Libre data, the lower increase in prices in the North zone is due to an increase in the supply of houses for rent, of the order of 63%, as well as to

a drop in demand for this type of property, partly because many of them are dollarized.

The rent adjustment method, as well as the duration of the contracts, which after the new Law went from two to three years, continue to be causes of

controversy between real estate agents, owners and tenants.

According to the president of the Argentine Real Estate Chamber, Alejandro Bennazar, "to avoid the impact on prices and a greater supply of real estate on the market, there should be a new law that offers the possibility of

returning to the two-year contract with a adjustment every six months at most adjusted by a salary value coefficient (CVS)".

In this sense, he stated that the new update index should not contain the CPI next to it because "it is an unknown quantity for all parties and forces them to constantly negotiate," he opined.

Among other concepts, according to the leader, "in order for there to be a drop in market prices

, incentives are needed to increase the supply of real estate and also a return of access to credit,

as a State policy," he said.

NE

look too

Rentals, fuel, rates, prepaid and telephony: the 5 increases that will hit your pocket in February

Temporary rentals: what to consider before signing and what are the requirements

Source: clarin

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