Rentals: renewals will suffer a 60% increase due to the inflationary effect

Renewals of rental agreements in August will increase more than 60% for tenants. This means that a monthly rent of $60,000 for a three-room apartment will cost $96,000.

The calculation arises from the variation established by the Index for Lease Contracts (ICL) prepared daily by the Central Bank (BCRA). This index is prepared with the combination of the increase in wages and inflation.

According to the ICL, that tenant signed a contract on August 1, 2021, must renew it on August 1, 2022 with a 60.96% increase.

Anarchy in the real estate market: 60% of rents are dollarized

A survey carried out by Inquilinos Agrupados indicated that 30% of the tenants have contracts for shorter terms than the legal one.

The head of that entity, Gervasio Muñoz, denounced “maneuvers” by real estate companies to apply increases outside the official index. He also warned that 20% have updates every six months or less.

Real estate sector analysts warn that the situation of the tenants is more worrying because the owners ask for more and more requirements to deliver their property for rent.

How much does a rental cost?

In July the rents they rose 17% for houses and 3% for apartments compared to June, according to a report from the University of San Andrés (UDESA). Measured on a year-over-year basis, there was a 15% drop in the housing market and a 4% increase in the apartment market.

In the suburbs, rental prices rise below inflation, according to a comparative study by Zonaprop. In North GBA they rose 5% in the month and accumulated a 30% increase in the year. In West and South GBA the increase is 5.5% and the accumulation in 2022 is 29.9%.

The increase in rental prices is due to the fact that during July there was a strong rise in the blue dollar of 30%.

In addition, in the case of houses in North GBA, a high proportion of those offered for rent in Mercado Libre are in dollars.

During July, this proportion was 70% of total properties, well above the proportion represented by house rentals in dollars in CABA, GBA South and West. In addition, many properties are valued in dollars, especially in areas more frequented by tourists. Source: NA.

LM / CCM

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