By Richard Mann, Contributing Reporter
RIO DE JANEIRO, BRAZIL – In April, the average rental price announced for new residential leases climbed five consecutive times, exceedingexpected inflation for the first four months of the year.
Fipezap research figures, released this Thursday (15th), show that from January to April, the average rent rose 2.5 percent – above the 2.09 percent of the Broad Consumer Price Index (IPCA).
The variation measured by the survey is based solely on advertised prices for new residential rental contracts – in other words, it does not take existing real estate rental contracts into account; these are usually adjusted by indexes such as the General Market Price Index (IGP-M).
From March to April, the average price of announced residential leases rose 0.81 percent – above inflation of 0.57 percent. However, in 12 months, the price increase continues to lag behind inflation.
While the increase in the average figure is 3.06 percent for the 12 months ended in April, the IPCA registered a 4.94 percent variation.
This survey also determines rent profitability by comparing the average rental and sales values. In April, the average annual rental income stood at 4.56 percent of the sales value.