Rents Are Expected to Rise by 1.1% in 2018, the Largest Increase Since 2013.

 

11 August 2017

It will be the largest increase since 2013 and would be twice this year’s increase, which was only 0.54%.

According to inflation data published this Thursday by the National Statistics Institute, rents are expected to rise by 1.1% in 2018. It will be the largest increase since 2013 and would be twice this year’s increase, which was only 0.54%.

The final inflation figure that will regulate the increase in rents next year will only be known in September and will be published by October 30, but the evolution in this year’s Consumer Price Index indicates that the figure will be around 1.1%, which has been the average variation in prices in the 12 months prior to July.

This rent increase will be applied to about 700,000 dwellings leased after 2006, under the New Urban Lease Scheme (NRAU), as well as several thousand commercial properties.

This means that for every 100 euros of rental costs, there may be an increase of €1.10. This year, the possible increase was only €0.54 per 100 euros of rent, and in the previous year, the 0.16% increase was negligible. In 2015, there was no increase, and in 2014 it was only 0.99%. 2013 was the last year with a significant increase in rents, with 3.36% inflation registered, coming on the heels of 2012, which also recorded a permitted increase of 3.19% in rents. In the crisis years, 2010 and 2011, inflation was zero and 0.3%, respectively.

The amount to be published in September is the index that also often guides readjustments in the price of food goods and various pensions and subsidies paid by the Portuguese state.

Original Story: Dinheiro Vivo – Erika Nunes

Photo: D.R. Erika Nunes

Translation: Richard Turner