Brazil residential rent increases nearly double inflation rate

Residential rental costs in Brazil rose by 9.13% in the 12 months ending in September, nearly twice the recorded inflation rate of 4.58% for the same period. According to FipeZap data, 31 of the 36 monitored cities reported price increases in September.

Fortaleza recorded the highest 12-month accumulated increase at 16.59%, while São Paulo maintained the most expensive average price per square meter among capitals at R$ 65.78. Although prices continue to rise, the monthly pace of adjustments has decelerated from 1.04% in April to 0.52% in September.

The pressure on rental prices is partly attributed to high interest rates and expensive credit, which cause many families to delay home purchases and remain in the rental market. Meanwhile, the sale of residential properties saw a 5.51% appreciation over the same interval.