Brazil real estate prices and rents rise above inflation

Rental costs in Brazil rose by 9.28% over the last 12 months according to the FipeZAP Index, outstripping official inflation. Despite these rising costs, rental delinquency rates fell to 3.05%, the lowest level since June 2023. Experts suggest tenants are prioritizing rent payments over other debts, such as credit cards, to avoid eviction. Additionally, stricter screening processes by landlords, including requirements for income to be three times the rent value, have contributed to a more solvent tenant profile.

In the residential sales market, property prices also showed resilience. The FipeZAP Residential Sales Index reported a 5.49% increase over the last 12 months, which remains above the 4.14% inflation rate used for comparison. This growth occurred despite high interest rates and expensive real estate credit. The price increases were widespread, with all 56 cities monitored by the indicator showing appreciation over the past year.

Geographically, Barueri recorded the highest price per square meter in the country at R$ 72, followed by São Paulo at R$ 65.18. In the capital cities, Aracaju saw the most significant annual appreciation at 25.78%, driven by urban expansion and new infrastructure developments.