By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – The price increase per square meter of residential and commercial real estate in São Paulo and Rio de Janeiro registered a decline for the eleventh consecutive month in October, the lowest increase since 2008, according to the FipeZap Index, one of the main sources for the real estate market in Brazil. The price increase in São Paulo was of 0.3 percent, while in Rio de Janeiro the increase was of 0.35 percent.
The FipeZap Index which monitors prices of real estate in twenty Brazilian cities, still registers Rio de Janeiro as the city with the highest average real estate value per square meter in the country (R$10,830), followed by São Paulo (R$8,301) and Brasilia (R$8,089). The national average price per square meter is R$7,482.
The average value of the square meter of residential and commercial properties in Brazil registered an increase of 5.88 percent in the first ten months of the year, and an increase of 8.23 percent in the last twelve months. “October was the eleventh consecutive month of declines since the 13.8 percent registered in November of 2013,” said FipeZap in a press release. “This result therefore, reinforces the tendency of a slowdown of real estate prices in the country.”
Although prices per square meter in Rio de Janeiro have decreased their growth rhythm, the same cannot be said for the number of new real estate unveilings. According to the Association of Corporate Real Estate Market (ADEMI), 1,473 new units were introduced in the market in August, increase by eight percent in comparison to August of 2013.
According to the entity most of the new units, both commercial and residential, were unveiled in the Northern and Western regions of the city, influenced by the infrastructure works currently underway due to the Rio 2016 Olympics.