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The roller coaster ride: Brazilian residential rents develop very differently depending on the city in June

The Residential Rental Variation Index (Ivar), monitored by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV Ibre), experienced a deceleration in June, with a decrease of 0.48% compared to the previous month’s rate of -0.06%.

This contributed to a 12-month accumulated rate of 7.96% in June 2023, down from 8.14% in May.

FGV Ibre identified changes in the variation rates of three cities comprising the Ivar between May and June.

Belo Horizonte declined from 3.09% to -4.98%, Rio de Janeiro dropped from 3.15% to -2.77%, and Porto Alegre decreased from -0.33% to -0.13%.

Brazil, Brazil News, Rio de Janeiro
Brazilian residential rents develop very differently depending on the city in June. (Photo Internet reproduction)

Only São Paulo saw an increase in residential rent variation, rising from -2.02% to 1.54%.

Compared to June of the previous year, two cities within the Ivar index showed deceleration.

Rio de Janeiro decreased from 11.63% to 8.82%, and Belo Horizonte declined from 11.68% to 10.68%.

On the other hand, São Paulo and Porto Alegre experienced advances in their year-on-year rates, with São Paulo rising from 6.50% to 7.22% and Porto Alegre increasing from 6.13% to 6.28%.

The Ivar index measures the monthly evolution of residential rental values in the Brazilian real estate market.

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