Commercial real estate rents could rise 2.2% in 2026

Urban building rents are likely to rise by up to 2.2% next year according to inflation data published on Wednesday.

Although the annual rent coefficient update is set and based on the average inflation rate over the past 12 months, July’s values allow for an estimated calculation.

Data from the National Statistics Institute (INE) confirms that the average inflation for the past 12 months for non-housing property settled at 2.16% in July.

The value had slowed in recent months, but this new upward trajectory is expected to be the new normal which means the the annually updated coefficient for commercial real estate rents, which is calculated annually by the INE and based on inflation over the preceding 12 months, should stand at around 2% but could vary between 2.1% and 2.2%.

Updating the amount of rent in line with inflation by the landlord is not mandatory, but the landlord must forewarn the tenant by a registered, hand-delivered letter at least one month prior to the start of the rent increase for commercial property.