Tenants Could Pay Almost 7% More in 2024

by | Sep 7, 2023 | Tenants

The INE (National Institute of Statistics) released today the “quick” estimate of inflation that serves as the basis for calculating the annual updating coefficient of rents. The final number is 6.94% – close to the 7% that had already been predicted by the owners associations, so rents next year could see large monthly increases: a rent of 500 euros could increase 34.70 euros a month, and a rent of 1000 euros could rise by 69.4 euros/month, which works out at 416.40 euros and 832.80 euros a year respectively – almost the equivalent of an additional monthly rent. The Government can act to prevent these increases if it chooses to re-implement a rule already in effect this year, when a special diploma limited rent increases to a maximum of 2% (instead of the 5.43% determined by inflation), with landlords being compensated for the difference through tax deductions.

The final, real inflation coefficient will be released on September 12th by the INE. Taken from the following article, in Portuguese: https://cnnportugal.iol.pt/arrendamento/rendas/paga-uma-renda-de-500-prepare-se-para-gastar-mais-416-em-2024-se-nao-houver-travao-o-governo-nao-diz-se-vai-haver-os-proprietarios-temem-armadilha-os-inquilinos-receiam-o-absurdo/20230831/64f07ba9d34e371fc0b724a5