Bankinter | The National Statistics Institute (INE) has published for the first time the indicator that limits the rise in rents. It places it at 2.2% for 2025, below inflation, which reached 2.8% year-on-year in December (preliminary), and the underlying rate (2.6%). The index is defined as the minimum value between: (i) year-on-year change in the CPI; (ii) year-on-year change in the core CPI; and (iii) a third variable incorporating two “government-defined” parameters.
Opinion of Bankinter’s analysis team: This benchmark will be the one that will limit rent reviews in 2025. However, as we have seen in recent years, they will continue to rise much higher. In 2024, they have risen 11.5%, according to the real estate portal idealista, compared to the limitation of 3%. This is because the limitation only affects the renewal and not the change of contract, except in “stressed rental areas”. The lack of supply, coupled with legal uncertainty, will continue to push rental prices upwards.
