Despite the request of tenants and owners, the discussion to modify the Rental Law does not manage to advance in Congress, meanwhile, it is expected that next month the rentals have a record rise.
while in november the leases increased 73.12%, it is expected that in December the figure will climb to 77.58%, that is to say that citizens who pay today $45,000 for rentalsin December they will pay approximately $80,000.
The increases in rentals will affect tenants who signed contracts in December 2020 or 2021, In this way, the figure that will be a record puts greater pressure on the increases that will arrive at the beginning of next year..
According to the Professional Real Estate Association (CPI) of the City of Buenos Aires, the increases are due to “the effect of the increases in the parity rates and inflation”, since the index that determines the increases in the contracts contemplates the variation of the price index and wages.
In this regard, Marta Liotto, president of the CPI, stated after the increase that was generated in November in leases that “I think that this number speaks for itself of the difficulty that the rental market currently faces due to the failure of the Rental Law ”.
He further added: “Unless Congress makes progress on reforming that rule, as promised in March of this year and never delivered, prospects are not the best.“.
It should be remembered that the leases They increase month by month according to the Rental Contracts Index (ICL), published by the Central Bank, which contemplates the variation of inflation, according to the official figure published by INDEC and salaries, according to the average remuneration of stable workers (RIPTE).
How much did the rents increase this year?
The progression of the increases during this 2022 were: in January (52.21%); February (51.28%); March (51.67%); April (53.66%); May (53.91%); June (55.97%); July (58.16%); August (60.96%); September (64.67%); October (67.31%); November (73.12%).
In terms of values, on average a studio apartment in the City of Buenos Aires ranges from $60,000; while a two- and three-bedroom apartment averages $87,000 and $120,000, respectively.
