Rental contracts in Argentina are experiencing changes due to modifications in the contract modality and the update period. Despite this, many tenants maintain agreements under the old regulation (Law 27.551), which implies an annual increase based on the Rental Contract Index (ICL).
According to the Central Bank, contracts signed in January 2023 under the old law will face an increase of 174.4% in January 2025. Although it is a significant increase, a decreasing trend in the index is observed, with a decrease of 15.86% compared to contracts updated in January 2025.
In the case of rents that are updated annually in February 2025, they are based on the Rental Contracts Index (ICL) provided by the Central Bank. For example, a monthly contract of $100,000 would increase to $274,400 in the following twelve months.
Amid a continuous decline in inflation, the new contract modalities linked to the Consumer Price Index (CPI) published by INDEC favor tenants. For example, ICL-based contracts will increase by 19.17% in January, while those linked to the CPI will increase by 13.42% in the same month of 2025.
Following the repeal of the Rental Law, new contracts must be freely established between the parties. This has resulted in a notable increase in the supply of rentals in the real estate market. Although there is no mandatory regulation for the update, duration, or payment currency, 24-month contracts in pesos with quarterly adjustments have gained popularity. These contracts use as a reference the CPI published by INDEC or the ICL from the Central Bank.
