Rental prices in Brazil rose by 17.18% in the year to March, registering the highest uptick since December 2011. Florianópolis saw the biggest rise in rental rates, with a 36.75% increase and the district of Barueri in Sao Paulo had the most expensive square metre in Brazil. As a result, buy-to-let properties in Brazil continue to offer solid return on investment.
Double-digit rises all round
The latest FipeZap+ index reports that rental prices in Brazil skyrocketed in the 12 months to March. They rose by an average of 17.18% over the year, with a 1.75% increase in March itself. This latest annual rise is the highest in over 12 years.
According to FipeZap+, the uptick is three times the rate of inflation, which rose by 4.65% over the same 12-month period.
All 25 state capitals in the FipeZap+ rental index experienced significant rental increases in the year to March. Florianópolis stood at the top of the table, with a massive rise of 36.75%. Next were Goiania, up 31.53%, Curitiba, up 23.64% and Fortaleza, up 22.45%. Rental rates in all four cities soared far ahead of inflation.
Rental rates this year
In the first quarter of this year, rental prices in Brazil continued to experience a steady upward trend. Rates rose by 4.63% between January and March, indicating strong demand and short supply.
The latest figures for rental rates point to an average of 4.73% annual return on buy-to-let properties in Brazil.
Highest rental prices in Brazil
As is usually the case, Sao Paulo had the most expensive rents in Brazil, with an average square metre price of R$47.06. The priciest district was Barueri, where a small two-bedroom apartment costs R$2,593 a month to rent.
Florianópolis was the second-most expensive city for rents in the country, with an average of R$47.06 per square. Rio de Janeiro took fourth position, after Santa Catarina and Recife.
A recent report found that Fortaleza had the most affordable rental rates in Brazil, despite the sharp uptick in prices. An apartment in the capital of Ceará costs less than half a similar property in Rio de Janeiro.
(Source: FipeZap+)
