Number of Residential Properties for Rent in Rio Reaches Highest Level in Past Five Years

RIO DE JANEIRO, BRAZIL – The APSA real estate administrator conducted a survey that shows a significant increase in the number of vacant properties available in September in the city of Rio de Janeiro.

For the second consecutive month, the highest vacancy rate of the past five years stood at 17.8 percent. That is, for every one hundred houses or apartments available for rental in the city, approximately 18 were vacant that month, waiting for a tenant. The company credits this scenario to the impact of the novel coronavirus pandemic.

The variation in the inventory of properties for rent differs according to region and neighborhood. And it is in the North Zone that the impact is greatest. There is an estimated 27.1 percent vacancy, most notably the neighborhood of Vila da Penha, which reaches 33.3 percent. On the other hand, Rio Comprido has seen great liquidity and has helped reduce the vacancy rate in the region. With a reduction of 16.8 percent in August, its current 10.4 percent vacancy is considered normal.

Grajaú has also made progress compared to the preceding month, with almost 20 percentage points positive difference, reaching the rate of 10.2 percent. Maracanã has seen an increase in vacant properties and in September recorded an 11.6 percent vacancy. Tijuca follows the same trend, with an increase over the preceding month of 9.92 percentage points, reaching the rate of 13.3 percent.

Downtown is yet another neighborhood with a strong impact, with a vacancy increase in residential properties compared to the preceding month reaching the rate of 24.4 percent. This is not related to commercial real estate vacancies – offices and rooms, which according to the largest company specialized in this market, Sergio Castro Imóveis, reaches almost 40 percent vacancy.

Copacabana is the neighborhood with the highest vacancy in the South Zone, at 20.9 percent. As a result, three bedroom properties, with the highest offer, feature the lowest price per square meter in the neighborhood, at around R$30.00. A great opportunity for anyone in need of a more spacious apartment in Princesinha do Mar.

The vacancy rate in Ipanema also draws attention (20.3 percent), despite a reduction of 13.25 percent between August and September. Next comes Botafogo (18.3 percent), where the vacancy rate has increased by 5.17 percent in a month. Leblon also records an increase of 8.15 percent over the preceding month, reaching a rate of 14.6 percent.

“It is a high number, since the level considered adequate to maintain the practiced rental values is when the vacancy rate stands between eight and ten percent. However, we point out that demand for housing is high, there is no shortage of people wanting to live in Rio de Janeiro, rather than living with relatives or friends, or living in more distant cities in the Metropolitan Region. But if income is not in line with the amounts charged, we have this outcome. Many people give up living alone, getting married, and continue sharing their homes with others,” explains APSA Manager Jean Carvalho.

As a result of demand driven by the resumption of economic activity levels, the trajectory of the housing vacancy curve in Rio de Janeiro had stabilized in May 2019 and had been dropping sharply since November last year. The rate in the capital stood at 13.5 percent in February, 13.6 percent in March, and 14 percent in April, according to APSA data.

The same had been true for commercial real estate, which had reached just over 30 percent vacancy in January, in a downward trajectory according to Sergio Castro. Progress in both sectors was interrupted by the pandemic.

Prepared monthly by APSA since January 2016, the survey’s records had shown peaks in September 2017 (15 percent) and January 2018 (14.9 percent).

“This is the result of impoverishment with rising unemployment rates. And when there are no tenants, the damage to landlords is great too. About 76.7 percent of renters own only one property and rely on these resources for their monthly subsistence,” says Jean.