RIO DE JANEIRO, BRAZIL – The average price of new residential rental contracts in the city of São Paulo rose 3.12% from July 2020 through June this year, according to data released by the Housing Union (Secovi-SP) on Monday, July 19.
The figure fell below the IGP-M index, used to adjust existing rental contracts, which recorded a variation of 35.75% in the same period. The average value of new rental contracts remained virtually stable in June compared to May, with a slight increase of 0.20%.
The increase was felt in all the average property values in the month of June. The highest increase was seen in 3-bedroom properties, up 0.40% for the month.
“The rent value has shown stability in the last two months, after a slight drop in April. This behavior provides greater stability for the accumulated index, and proves that the adjustment of rents by the IGP-M is not being passed on in the vast majority of existing contracts,” analyzed the Secovi-SP in a note.
Among the types of guarantees most widely adopted by tenants, the guarantor/cosigner was the most common – used in 45.5% of rental contracts. The second most used was the 3-month rent deposit in 39% of cases. Another 15.5% chose surety bonds.