By Jay Forte, Contributing Reporter
RIO DE JANEIRO, BRAZIL – According to Fipe-Zap, for the thirteenth month in a row rental prices across Brazil rose well below the inflation rate, and in June rental rates actually went down. It is the first time this has happened since 2008 when the Fipe-Zap index was created, marking a turn-around from the rampant increases seen in the real estate boom years of 2009-2014.
In the nine Brazilian cities included in the index, June 2015 saw an average decrease of the rental housing prices by -0.57 percent in comparison to June 2014. In the same period, inflation measured by the IPCA was increased by 8.89 percent.
Rio de Janeiro had the largest decrease of 4.65 percent in listing prices, and when adding inflation to that it means property owners looking for rental income will not enjoy the same profit margins they became accustomed to. For renters, the trend means housing is becoming more affordable.
The monthly variation, from May to June of this year, also experienced a fall in the price of rents: the decline was 0.66 percent, compared to an increase of 0.79 percent in the IPCA. Again Rio de Janeiro was the city with the largest drop of 1.63 percent, followed by São Paulo, which was down 0.64 percent.
Despite the declines, the average advertised price for rental per square meter in Rio de Janeiro remains the most expensive, estimated at R$40.21. São Paulo is second, with R$37.29, and the average in the nine cities surveyed in June was R$33.54. The least expensive rent was in Curitiba, where the rent costs an average of R$16.08 per month per square meter.