Inflation, which serves as a basis for calculating the annual update coefficient for rents for various types of leases, including housing, stood at 2.16% in August, according to the flash estimate released this Friday by the National Statistics Institute (INE). The final data will be released on September 11th.

If this value is confirmed, this means that a current rent of 500 euros could increase by 10.8 euros at the beginning of next year, while a rent of 1,000 euros could increase by 21.6 euros, if the owner so decides.

This update applies to all contracts that are under the New Urban Lease Regime (NRAU). This is the case for residential rents, whether under the free rent regime, supported rent (the so-called social rents) or conditional rent. It also applies to commercial, industrial or property lease contracts for the exercise of a liberal profession or other non-residential purposes.

This annual update does not include old rents prior to 1990, in the case of residential leases, which have different rules.

Despite the new increase, the value of the rent update coefficient marks a sharp slowdown compared to what happened in the last two years and which, in fact, forced the government to impose a brake. Last year, the value of the coefficient was almost 7%.