Residential rents rose in August

Rents in Brazil rose 1.76% in August, according to data from the Residential Rent Variation Index

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According to data from the Residential Rents Variation Index (IVAR), residential rents rose by 1.76% in August. In the 12-month period, the increase was 10.41%. The survey is carried out by the Brazilian Institute of Economics of Fundação Getúlio Vargas.

The index is calculated based on the monthly values ​​of residential rentals in Brazil. The information is captured directly from the contracts between lessors and lessees with the intermediary of companies in the field.

Most expensive residential rents

According to the study, all the capitals surveyed registered highs in the month of August. Check out:

  • São Paulo: 1.04%;
  • Rio de Janeiro: 1.15%
  • Belo Horizonte: 3.10%;
  • Porto Alegre: 2.63%.

As can be seen, rents increased the most in Belo Horizonte and Porto Alegre in August. Last month, the two capitals also recorded the highest increases in the survey.

Residential rentals in 12 months

Within a period of one year, rates also grew. See the comparison:

  • São Paulo: from 8.99% to 10.53%;
  • Rio de Janeiro: from 10.41% to 11.34%;
  • Belo Horizonte: from 9.71% to 12.61%;
  • Porto Alegre: from 6.31% to 8.32%.

In relation to the last 12 months, Belo Horizonte was the capital that accumulated the largest increase among all analyzed.

Difference between IVAR and IGP-M

Like the IVAR, the IGP-M (General Price Index – Market) is also known as rent inflation. However, they are very different indices.

The IGP-M is the average of three indicators related to wholesale sales, building materials and prices of basic products, calculated by the IPA-M (Wholesale Price Index – Market), IPC-M (Consumer Price Index – Market) and INCC-M (National Construction Cost Index – Market).

These indices make up the IGP-M in different proportions. Look.

  • IPA-M: 60%;
  • IPC-M: 30%;
  • INCC-M: 10%.

In this sense, the IGP-M is a broad gauge and is strongly influenced by external factors, such as the dollar and commodity prices.

The IVAR is a specific index for measuring the variation of residential rents.

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Image: Nopparat Khokthong / Shutterstock.com

About Yadunandan Singh

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