Brazil’s real estate properties register in June the highest price increase since 2014 – survey

RIO DE JANEIRO, BRAZIL – The month of June had the highest increase in the average price of residential property sales since August 2014, 0.57%, when the average monthly growth was 0.68%.

In previous months, according to the FipeZap Index, the percentage was 0.48% in May and 0.30% in April. The survey is carried out by the Fundação Instituto de Pesquisas Econômicas (Fipe), based on real estate ads in 50 cities.

The index showed that Manaus had the highest increase (2.14%) in the average price last month, followed by Vitória (1.60%), Brasília (1.49%), Curitiba (1.47%), Goiânia (1.40%), Florianópolis (1.26%), Maceió (0.81%), Fortaleza (0.72%), and Porto Alegre (0.64%).

Of the 16 capitals monitored, 15 showed growth. São Paulo showed a 0.40% gain, surpassing the variation in Rio de Janeiro (0.15%). Campo Grande was the only exception, where the variation registered a 0.94% drop.

The partial balance sheet for the first half of 2021 also points to a nominal increase of 2.17% in the period. The index is lower than the 3.82% inflation registered in this time interval, according to the behavior observed and expected by the IPCA/IBGE. The information was published in the Focus Bulletin of the Central Bank of Brazil on Monday (5).

In this partial balance of the last year, all 16 state capitals monitored presented an increase in the average price. If the last 12 months are considered, the nominal advance was 4.76%. On the other hand, there was a drop of 3.36% in real terms compared to the accumulated inflation (+8.40%).

In relation to the average residential sales price, Rio de Janeiro led the highest price among the Brazilian capitals last month: R$ 9,545/m2. followed by São Paulo (R$ 9,529/m2) and Brasília (R$ 8,336/m2).

Among the 16 monitored with lower average residential sales value include: Campo Grande (R$ 4,327/m2), João Pessoa (R$ 4,692/m2) and Goiânia (R$ 4,721/m2). Overall, the average cost of the 50 cities monitored by FipeZap was calculated at R$7,655/m2.

The survey highlights the accumulated increases in 12 months in Maceió (+14.27%), Vitória (+13.30%), Manaus (+13.29%), Curitiba (+11.08%), Brasília (+10.48%), Florianópolis (+9.47%), Goiânia (+9.22%) and João Pessoa (+8.89%).

In São Paulo and Rio de Janeiro, in turn, the accumulated results were increases of 4.41% and 2.29%, respectively.