CPI forecast for 2023: will rental prices go up?
It’s official now. The latest agreement between PSOE and EH Bildu is committed to extending the rent update limit to a maximum of 2%. Given this news, and after the CPI inflation that has characterized, the question that owners and tenants are asking is will rents rise? Next, we show you what the CPI forecast is for. Rent your apartment and forget about worries 0% late payment. We take charge if the tenant does not pay. GET INFORMED FOR FREE Current context: evolution of the CPI in has been a year of surprises as far as the Consumer Price Index (CPI) is concerned. At the beginning of the year, Spain was still suffering the economic and social consequences of the pandemic . And, just when we thought it was going to get better, the Russian invasion of Ukraine and its effects hit the country. Consequently, the CPI began to climb progressively and in a very short time, reaching percentages that had not been seen for decades. Faced with this panorama, taking into account that CPI inflation had a direct impact on the evolution of housing prices, the Government was quick to make a move. Thus, in March the Council of Ministers approved the limit of the annual rent update in all rental contracts. In other words, the owners could not raise the rent more than 2% upon completing the annual renewal, leaving aside the value set by the CPI. This measure initially lasted from April to June. But over the next few months, inflation continued to rise.
CPI forecast for 2023
How much will the CPI rise in ? The CPI forecast in Spain for is promising. The last value recorded by the National Institute of Statistics (INE) is from November, where the annual CPI inflation stood at 6.8% . This is a value lower than the 7.3% with which it closed the previous month and which contributes to the decrease in price increases . Regarding the underlying CPI, the annual variation rate has increased by one tenth, to 6.3%. According to the INE, the drop in value is caused by the decrease in fuel and electricity prices , elements that increased their price in . Given this, the Funcas economic research and analysis center predicts that the CPI will close this with a rebound in value, and then begin another downward trend in. As a result, the annual average focould be reduced by more than three points, around 4.7% and with an underlying index of 4%.
CPI forecast: how much will rents rise in 2023?
In the rental price will continue to be limited by the 2% annual increase limit. With the approval of the extension of the limit, the measure is extended until. In this way, the temporary disengagement from the CPI will be maintained for next year, providing peace of mind to tenants, but keeping the owners of rented homes tied to the established percentage. In other words, landlords will still not be able to raise the rent based on the value set by the CPI . This poses a dilemma. If the CPI forecast for marks a rebound and values rise again, the price of living would become more expensive and homeowners would be paying direct housing expenses at a higher price, but maintaining a stable rental price. Faced with this possible situation, many landlords could withdraw their property from the rental market to save excessive expenses. A measure that would contribute to worsening the reduction in supply , a scenario that can already be observed in many areas of the country, where demand far exceeds the number of available homes.