Commercial property sales prices did not follow the increase in inflation in the year

Get real time updates directly on you device, subscribe now.

The price of commercial real estate in Brazil has remained practically stable in the last 12 months. In this period, inflation measured by the Broad National Consumer Price Index (IPCA) rose by 11.73%.

Already registered by the General Market Price Index (IGP-M) reached 10.72%. Despite this, buying a property in this period was only 0.04% more expensive. The numbers are from a survey by FipeZap, an indicator that tracks the evolution of sales and rentals in the country.

The São Paulo economics professor at the Getúlio Vargas Foundation (EESP/FGV), Alberto Ajzental, emphasizes that, in practice, the 0.04% advance is almost nil. “Nominally, there was no change. In one year, nominal growth was zero, there was no change.

The number it was a year ago is still the same, zero.” According to the specialist, the difference is the real value, since the values ​​were not adjusted according to inflation.

This variation below the IPCA and the IGP-M can be explained, for example, by the effects of the Covid-19 pandemic that still continue to reflect on business.

Ajzental points out that social isolation against the coronavirus has made people not go to work in offices and therefore work from home. “This reduced the demand for commercial space and created a vacancy”, he points out.

In addition, the economist also draws attention to real estate credit conditions as an important factor for this result close to stability. “With the increase in the Selic interest rate, financing for the purchase of the property, in this case the commercial property, became more expensive. This caused demand to drop,” he says.

In this way, as it became more expensive for the end customer, property owners and builders were not able to pass on inflation or any increase to the price of the good itself, because it would make the customer very expensive”, he concludes.

Source: CNN Brasil

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

www xxx xxx video tube freeproncom filmsex hindi xxxvdo xxx hd
buy kamagra buy kamagra online $255 payday loans online same day no denial payday loans direct lenders only