Brazil: Rental price in São Paulo hits record, surpasses pre-pandemic level

RIO DE JANEIRO, BRAZIL – In April, São Paulo City recorded the highest value of the price of the rent square meter in the entire historical series of the QuintoAndar Rent Index, which began in 2019. According to the indicator, the price in April reached R$39.51 (US$7.69) per square meter.

The 1.28% increase compared to March caused more than half of the city’s neighborhoods to exceed the average price negotiated before the Covid-19 pandemic. Until then, the highest price negotiated in the capital had been recorded in March 2020, when it reached R$39.15.

It was also the tenth consecutive month of increase, reinforcing the scenario of heating up the real estate market in the capital. In 12 months, the average value of the square meter rose 9.87%.

Among the main factors for the record registered are the season for rentals and the search for studios and one-bedroom properties that resulted from the resumption of economic activity and the return to face-to-face work. The rise in the price of two and three-bedroom apartments also encouraged the movement.

The scenario allows us to indicate a heating up of the scenario, even if it is not spread throughout the city, highlights Thiago Reis, Data Manager at QuintoAndar.

WHERE RENTS ROSE THE MOST

Rent per square meter in 41 of the 61 neighborhoods monitored by the Index this year is already higher than at the beginning of 2020, equivalent to 67% of the locations in the São Paulo capital.

The neighborhoods are spread across all regions, indicating that there is not yet a homogeneous effect in the city.

For example, hot trading zones in the city, such as Pinheiros and Vila Olímpia, are still far from recovery. On the other hand, regions like Tatuapé and Mooca have already shown a recovery in the average price of the square meter.

“The rental value was affected in almost all neighborhoods during the initial months of the pandemic, in 2020. However, the size of the impact and the recovery time are quite different. Neighborhoods with more one-bedroom apartments, such as Vila Clementino and Liberdade, only recovered their prices with the resumption of demand for these properties in recent months, with the cooling-off of the health crisis,” says Reis.

With information from Exame