Rents in Rio de Janeiro are rising faster than inflation

Rents in Rio de Janeiro are above the rate of inflation. This is according to the July report of Imovelweb, published this week. In 2022, the value increased 12.2% above the inflation rate, resulting in a real increase of 6.4%, and monthly gains of over 1.2% have been recorded since January.

According to the study, the average price of monthly rent in Rio de Janeiro in July was R$2,104 for two-bedroom apartments, an increase of 1.7% in this period. Looking at the last 12 months, the rental value has also increased slightly above inflation.

Among the city’s regions, the South Zone was reported as the most expensive, with an average monthly rent of R$3,084, while the West Zone is the cheapest place to live, with an average price of R$1,057 per month.

Region

Rental value (R$)     Monthly change (%)   Annual change (%)

West Zone

1.057                                    0,4                             1,8

Greater Méier

1.154                                    -0,5                             2,3

North zone

1.169                                    -1,3                             4,5

Ilha do Governador and Leopoldina Zone

1.304                                      2,2                            5,3

Greater Tijuca

1.519                                     -0,3                            4,1

Barra da Tijuca and Baixada de Jacarepaguá

1.782                                      0,4                            9,3

City center

1.833                                      1,0                            9,2

Southern zone

3.084                                      2,9                            16,9

When analyzed by neighborhood, Leblon and Ipanema are the most expensive in the city, with average monthly rents of over R$4,000.

Cheapest (R$)

Rental value (R$)     Monthly change (%)   Annual change (%)

Guaratiba

967                                       -1,5                             0,0

Realengo

975                                       -9,6                             0,1

Tomás Coelho

1.000                                      3,0                          -11,2

Most expensive (R$)

Rental value (R$)     Monthly change (%)   Annual change (%)

Urca

3.515                                      5,9

Ipanema

4.262                                      2,1                            12,9

Leblon

4.738                                      1,9

The data of Imovelweb’s monthly price report, also called the index, are compiled based on all the properties listed on the portal (over 4 million), both for rent and sale, and indicate the average price of the properties.

REAL ESTATE FOR SALE, PRICES BELOW INFLATION

In July, the average price to buy a property in the city was R$ 8,929 per square meter, an increase of 0.4% this month and a 12-month consecutive increase.

In 2022, the cumulative increase was 1.9% below the inflation rate, resulting in a real decrease of 3.9 percentage points. Over the last 12 months, the price fell by 8.4% in real terms.

Leblon is the most expensive neighborhood in which to buy a property, with an average price of R$21,561 per square meter. Turiaçu, in the North Zone, on the other hand, is the cheapest, with R$2,361 per sqm.

Cheapest (R$/m²)

Sales  value (R$)     Monthly change (%)   Annual change (%)

Turiaçu

2.361                                     -1,6                            -7,4

Coelho Neto

2.410                                      1,4                            -4,0

Honório Gurgel

2.966                                     -4,1                            10,7

Most expensive (R$/m²)

Sales  value (R$)     Monthly change (%)   Annual change (%)

Lagoa

16.569                                    0,0                              1,5

Ipanema

19.874                                    0,6                              1,6

Leblon

21.561                                    0,2                             -1,8

PROFITABILITY, HOW LONG DOES IT TAKE TO PAY OFF THE PURCHASE OF A PROPERTY?

The Property Profitability Index relates the property’s sales price and rental value to determine the time it takes to recoup the money invested in purchasing the property.

In July, the Imovelweb report recorded an annual gross index of 4.33% in Rio de Janeiro, meaning that it takes 23 years to recoup the investment to buy in the city, 6.5% less than a year ago.

Greater Méier and the North Zone are the regions that offer the best returns for investors. Vargem Grande and Vaz Lobo are the best neighborhoods for rent-seekers.