From August to September, the growth in Brazil’s residential rent prices slowed from 1.33% to just 0.96%.
The Economic Research Institute Foundation (Fipe) conducted this study. It looked at 25 cities on the Zap Properties website.
For this year, rents have gone up by 13.26% in total. Over the last 12 months, they’ve risen by 16.16%.
Even with the slowdown, the FipeZAP Index outpaced inflation, indicating that rents in Brazil effectively became pricier in real terms.
The survey also revealed interesting city-level data. Every surveyed city saw rent go up. Cities like Santos, Recife, and São Bernardo do Campo led with the biggest hikes.
On average, the rent cost stands at R$ 41.51 per square meter.
São Paulo had the highest average, costing R$ 50.69 per square meter, closely followed by Florianópolis (R$ 50.46).
The average in Recife is R$ 46.33, followed by Rio de Janeiro at R$ 44.06, Brasília at R$ 40.36, Belo Horizonte at R$ 35.37, and Curitiba at R$ 34.72.
Cities with the lowest rental rates in September included Fortaleza (R$ 27.59), Porto Alegre (R$ 30.77), Salvador (R$ 32.10), and Goiânia (R$ 33.05).
Background
For context, Florianópolis has become one of the most expensive cities in Brazil for renting residential properties.
Over the past few years, the city has seen a significant increase in rent prices, largely driven by tourism and a growing tech industry.
This surge has put financial strain on many residents.
Because of these high costs, some locals are considering relocating to more affordable cities.
Property values in Florianópolis have impacted renting and made it more challenging for first-time homebuyers to enter the market.
While the city offers quality living, the escalating costs have made many question if it’s worth staying.
Rent control policies do exist but have had limited impact in curbing the rise. So, for those feeling the pinch, it might be time to consider more affordable living options elsewhere.