IGP-M at 30% leads to office contracts reviews



The surge in the General Price Index - Market (IGP-M) led owners of commercial offices and tenants to sit down to discuss new indexing possibilities for rental contracts or the partial application of the primary reference indicator for rent correction. The sector shows that 30% of landlords have already accepted the indicator change. Real estate fund managers reinforce the trend and say that owners have agreed to change the IGP-M for the Broad Consumer Price Index (IPCA), but it depends on each contract. Economists warn that, in the long run, the two indicators will be similar. However, as we are facing a weak economy in the country, the IGP-M took off and accumulated an increase of 29.83% in 12 months.


According to consultants heard by Valour, lessors and tenants negotiate on a case-by-case basis, and there is no predominant trend. The IGP-M appreciated 1.95% in the first preview of March, according to the Fundação Getulio Vargas (FGV).


Giancarlo Nicastro, president of the SiiLA Brasil consultancy, informs that, in several cases, the correction is being made by half of the IGP-M variation, and the remainder becomes a delicate balance to be paid if the tenant devolves the property before the end of the contract.


Read more: https://siila.com.br/news/detail/21857895



GET IN TOUCH

+1 770 827 9192

Varsovia 36 - 204,
Juárez, Cuauhtémoc,
06600 Mexico City

Rua Gomes de Carvalho, 1069, cj. 22 - Vila Olímpia
São Paulo/SP
04547-004

ABOUT SiiLA

SERVICES

SiiLA LATAM

FIND US ONLINE

  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Instagram

© 2020 REIX Corp. All Rights Reserved