Residential rent is higher than May inflation, FipeZap indicates

Residential leasing in the country closed the month of May with an increase of 1.70%. The survey was presented by the Economic Research Institute Foundation – FipeZap. The rise in the month exceeds the monthly inflation measured by the IPCA (0.47%).

Among the capitals evaluated, São Paulo has the highest average value in the country. In the capital, the square meter reaches R$ 42.11. Recife follows, R$38.83, Brasília R$35.15 and Rio de Janeiro R$34.81.

In the last 12 months, the value of rents accumulates the readjustment of 11.11%, touching the inflation index for the period of 11.73% published by the Brazilian Institute of Geography and Statistics – IBGE.

For the real estate market, the year started with record adjustments. In February, the average rental price registered the highest monthly increase in eleven years, 1.36%. For the economist at Fundação Getúlio Vargas, Alberto Ajzental, the price rise was already expected.

“Usually people wait until the end of the year to choose their properties and make lease commitments. There are more people renting, less offers available. It is a common behavior in the market in February. In the months of January and July, demand drops”. Explains Professor Alberto Ajzental.

The professor also explains that the month of May consolidates a sequence of price rises that balances the interests between tenant and owner.

“At the beginning of the year, the accumulated readjustment reached only half of inflation. The owner’s profit margin was smaller, even lower than the savings income. Not now. On the other hand, the index has not yet beaten inflation, maintaining the advantage for the tenant.

For Fábio Tadeu Araújo, economist at FAU Business and specialist in the real estate market, the loss of purchasing power of the average Brazilian population has stopped an even more significant rise in prices.

“The average income of Brazilians has regressed to values ​​of ten years ago. If resources decrease, families cannot afford the rents and put pressure on the renegotiation of contracts. Without an agreement, the tenant looks for another property, cheaper. This leads to a reduction in the average price of properties available for lease”, explains economist Fábio Tadeu Araújo.

One of the modalities that has increasingly attracted the real estate investor is daily rentals. The earning possibilities can present faster profits, however, it is necessary that the property presents the “vocation” for the business.

“The property must be in good condition and in an outstanding location. It also requires continuous monitoring of the entry and exit of the tenant, who ends up becoming a guest. It is necessary to manage entries and exits, ensuring the integrity of the properties”, concluded economist Alberto Ajzental.