He Consumer Price Index (CPI) The final figure for March closes at 9.8%, the same figure as that advanced by the INE and which translates into the highest since 1985. The 2% limit established by the Government in the annual renewal of rental contracts supposes that an average rent in Spain for a two-bedroom type home will now go to almost 700 euros/month, compared to the more than 750 euros per month that would have been with an increase linked to inflation, according to the study carried out by idealista, the real estate marketplace in southern Europe.
In the large markets, the difference is even more noticeable: Barcelona remains at 867 euros/month with the 2% increase, while it would have reached a monthly payment of 930 euros with the CPI. In Madrid, for its part, the limited increase leaves an income of 815 euros/month, which would have been almost 880 euros applying inflation.
He National Statistics Institute (INE) has published the final data for the Consumer Price Index (CPI) for March, which has maintained the same record figure of 9.8% in its interannual rate registered in the advance data known at the end of last month, and which represents more than two points above the February rate and the highest since 1985.
This increase will no longer affect tenants who have the annual review of their contract from now on. The Government of Pedro Sánchez has decided to intervene in the price of the free rental market by applying an extraordinary measure within the National Response Plan to the war in Ukraine, which involves applying a limit of 2% in the annual update of the rent of the contracts habitual residence between April 1 and June 30.
Therefore, in the next three months the Consumer Price Index (CPI) will no longer be used as a reference in the agreed annual renewal of rental contracts included in the Urban Leasing Law (LAU) to apply the Guarantee Index of Competitiveness (IGC), which will always be between 0% and 2%.
Together with the rental market in Barcelona and Madrid, the cities of San Sebastian and Bilbao They are the other capitals in which the difference between the limit of the increase in rents of 2% and the rise in the CPI that would have been applied to the renewal of the contract will be most noticeable.
The rent update for a two-bedroom apartment rented in Donosti will remain at 893 euros/month on average, while it would reach 961 euros/month if March inflation were applied. Bilbao, for its part, will see the annual rent increase remain, on average, at 791 euros/month, compared to the 851 euros/month it would have been if the rent update were linked to the CPI .
This is the average income with the increase applied to the renewal of rents with the IGC, which would have been with the March inflation rate, and the difference in income/savings in the provincial capitals:
