With the update of rents, how much can the rent increase in 2024?
Unlike what happened in 2023, the rent update in 2024 will not have any established limit. The forecast for the update is 6.94%. So, what does this increase in rent mean?
If you are looking for a property to rent or buy in 2024, you should talk to Casa no Minuto! Real estate consultants can help you throughout the process, as well as credit intermediaries from Poupança no Minuto, if you are looking for financing. But first, get to know the rent values that may arise.
Income will be updated in 2024 with a new coefficient.
According to the National Institute of Statistics (INE), the rent update in 2024 is 6.94%. This is the highest update value since 1994, resulting in a coefficient of 1.0694.
This increase will be partially offset by the strengthening of tenant support and the portion of rents that can reduce income tax.
The 2024 update opposes the ceiling set by the government that limited rent increases to 2%. "In 2024, these can increase in line with the inflation indicator used as a reference for their update," as seen on Notícias ao Minuto news.
To find out how much you can increase your income through the implementation of this update, you have to multiply the current value by the coefficient in question (1.064 in 2024).
But let's go to some examples, with specific incomes: How much does it increase if you have an income of 500 euros? Or 1,000 euros?
How much can income increase in 2024?
In practice, let's look at some examples with rents between 300 and 1,500 euros, to get an idea of the increase. This is because the thresholds imply different increases: For a rent of 300 euros, there is an addition of 20 euros, while for a rent of 1,500 euros, an increase of over 100 euros is at stake.
Check out the different increases based on different rental values in the following table, as mentioned in the news article.
| Income in 2023 | |
| 300 euros | 320.82 euros |
| 500 euros | 534.70 euros |
| 750 euros | 802.05 euros |
| 900 euros | 962.46 euros |
| 1,000 euros | 1,069.40 euros |
| 1,500 euros | 1,604.10 euros |
So, these are the increases you may encounter, varying according to the amount of your income. If you want to know more specifically, simply multiply the current value by the coefficient 1.0694.
If what you are looking for is still a property to rent or buy, contact the real estate agency Casa no Minuto and find out how we can help you. The same applies to the credit intermediaries of Poupança no Minuto: For free, they help you choose the best credit proposal for you!