Decemberthe last month of the year a new bad news for tenants who will go through the second part of November with unprecedented increases. The real estate market anticipated that for those who must renew next month the increases that could reach 80%a record number driven by inflation and wage increases.
From the Professional Real Estate Association of the City of Buenos Aires (CPI) assured that under the weight of runaway inflation, rents will also jump sharply due to the effect of salary increases that, precisely, sustains the coefficient tied to what happens both with prices at a general level and with salaries.
Inflation: what data for November and December could avoid 100% annual
In this context, the rate of rent update For the contracts that were signed in December 2021 and December 2020, it is estimated that the increase will be 77.58%, so a rent that today has a value of $30,000 will have a value close to $53,000.
The data translates into a new problem for tenants who face an increasingly complicated situation of hold on cost of livingwhile for owners it represents a percentage that is 11 points below year-on-year inflation, according to the Professional Real Estate Forum to the daily Financial sphere.
The increases that occurred in the year
- 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%
- December: 77.58%
How to know how much the rent will be
The increases established by the Rental Law are based on salary increases (RIPTE) and inflationary, according to the Consumer Price Index delivered by the INDEC.
Those wanting to calculate the year-over-year increase for October will need to use specific rent data. Tenants must access the page of the central bankly search the Index for Lease Agreements (ICL), an indicator that aims to establish the parameters when entering into rental contracts.
Then you will have to calculate the existing variation, that is, you will have to divide the ICL with the same date last year. Finally, the result of that division must be multiplied with the value of the original rental price.
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