How will the housing situation change by 2024?

The year 2023 has been full of changes for the housing sector with the implementation of the legislative package "More Housing." The most impactful measures have already been in effect since October 7 and are having effects this year. However, there are still some changes that will come into force next year. The economic publication ECO reminds us of what these changes are:

Rental prices will increase by 6.94%.

Starting January 1, all rental prices - both residential and commercial - will be updated with a maximum increase of 6.94%. Unlike in 2023, the government has decided not to impose any restrictions on the adjustment of rental prices. This will be the largest increase in the last 30 years, surpassing the 5.43% that was supposed to be implemented in 2023, which was capped by the government at a maximum limit of 2%. Each landlord is given the right to decide whether to increase the rent and what adjustment to apply, within the legal maximum limit of 6.94%. The adjustment of rental prices can only be made upon the renewal of the contract.

Extraordinary rental support of 4.94%

To soften the rise in rent, the government is enhancing extraordinary rental support for the most vulnerable families.

New contracts with a 2% cap

New rental contracts will also have a cap of 2% in 2024 and will not be included in the extraordinary support for rental prices. With the "More Housing" package, which has been in effect since October 7, new rental contracts for properties that have been on the market for the last five years will not be allowed to increase rent by more than 2%. This rule will be in effect for seven years (until 2030).

Relaxation and compensation for old leases