Brazil Real Estate Prices Fall Far Behind Inflation in 2015

RIO DE JANEIRO, BRAZIL – The FipeZap Index, which measures the changes in price of property in twenty cities across Brazil, has released its monthly figures which show that in November the market largely remained stable, with a drop of only 0.05 percent. However, the average price per square meter of properties advertized for sale in Brazil between January and November this year presents a real decrease of 7.44 percent after inflation is taken into account.

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Real-estate prices dropped in Brazil in 2015 but prices in Rio de Janeiro remain the most expensive in the country, photo via Rio Exclusive.

According to the IBGE (Brazilian Institute of Geography and Statistics), the rate of inflation for the period was 9.47 percent, while the average price of real estate changed by only 1.32 percent in the year. Since the general rise in prices was greater than the fluctuation in the price of real estate an overall drop is registered for the year.

The average price per square meter of the twenty cities included in the survey was R$7,609. Rio de Janeiro, as ever, was the most expensive location, with an average price of R$10,458 per square meter advertised for sale.

By comparison real estate in Contagem, in Minas Gerais, was the cheapest at R$3,551 per meter-squared. Eight of the cities surveyed experienced a nominal decline: Florianópolis, Rio de Janeiro, Belo Horizonte, Recife, Contagem, Salvador, São Paulo and Brasília.

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