Increase in the CPI for Housing Rent in 2023

On January 5, 2023, DANE announced that the increase in the Consumer Price Index (CPI) for urban housing rent could be up to 13.12%. It is important to note that this increase does not apply to housing contracts signed before July 10, 2003, nor to commercial properties such as warehouses, medical offices, offices, or retail spaces for rent in Medellín and other areas of the country.

When can the rent increase be applied?

It is important to keep in mind that the increase can only be applied once 12 months have passed since the lease agreement was signed. That is, if the lease for an apartment for rent in Medellín was signed in October 2022, the increase may only be applied in October 2023.

The amount of the increase may be negotiated between the tenant and the property owner and must be communicated in advance, as stipulated by Law 820 of 2003.

What should the increase be for commercial properties?

The increase for commercial properties must be agreed upon by the parties or applied according to what was established in the lease agreement, as this type of increase is subject to the general rules set out in the Civil Code.

Finally, Catalina Velasco, Minister of Housing, stated that efforts are being made to separate rent increases in Colombia from inflation, with the aim of preventing Colombians from being overly affected by high economic adjustments.

We recommend staying informed about the latest developments in the sector. This information allows you to understand the increases that may occur in the real estate market and, in turn, make better decisions regarding potential investments in an industry that represents greater stability and security.

At Alberto Álvarez Real Estate, we like to keep you informed.

Written by: Valeria Ospina – Marketing Analyst