Heating economy sets commercial rents to hit record high in 2024

The change in rents was 7.88%, an index higher than the official inflation

At the pace of a booming economy, renting commercial space has become more expensive by 7.88% in 2024. The change is the highest ever recorded since 2013, when the calculation of the FipeZap index began.

Last year the average rental price per square meter (m²) reached R$45.53. This value indicates that the cost of renting a 200m² commercial space, for example, is approximately R$9,100 per month.

The data was published this Tuesday (21) and reveals that the FipeZap index exceeded the country’s official inflation by more than 3 percentage points (pp).

The general index of national consumer prices (IPCA), calculated by the Brazilian Institute of Geography and Statistics (IBGE), reached 4.83% in 2024.

Furthermore, FipeZap was above the general market price index (PGI-M), of the Fundação Getulio Vargas (FGV), commonly called “rent inflation”, as it tends to adjust rental contracts annually. The PGI-M ended 2024 at 6.54%.

In 2023, the average rent adjustment was R$5.87%. In the twelve years of the survey, half of them had a deflation, i.e. a drop in the average price of rents, with particular attention to 2015 and 2016, when they decreased by 9.43% and 7.92% respectively.

The FipeZap Index is a partnership between the real estate advertising platform Zap and the Institute of Economic Research Foundation (Fipe), connected to the Faculty of Economics, Administration and Accounting of the University of São Paulo (FEA-USP).

The survey detects the prices of premises and commercial complexes of up to 200 m² in ten cities (São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Florianópolis, Brasilia, Salvador, Campinas, Niterói), based on 61,683 advertisements on the Internet.

Economical heating

According to DataZap economist Paula Reis, the record change in commercial rents reflects the warming of the Brazilian economy, which has grown above expectations, driven by a strong labor market.

“The macroeconomic situation has positively influenced the commercial rental property market, contributing to expanding the demand for goods and services and encouraging trade,” he explained to Agência Brasil.

Last week, the Zap platform had already announced that residential rents would increase by 13.5% in 2024, reaching R$48.12/m². Increased employment levels also explain the expansion.

Paula Reis points out that from 2013 to October 2023, commercial square meters exceeded residential square meters. The reversal is due to the greater appreciation of residential rents in the last three years.

Rental by city

In the FipeZap inflation ranking, Niterói (17.84%) showed the greatest increase in rental prices, followed by Curitiba (10.89%), Rio de Janeiro (9.05%), Belo Horizonte (8.47 %), Brasilia (7.62%), Sao Paulo (7.13%), Salvador (6.23%), Campinas (5.71%), Florianópolis (5.11%) and Porto Alegre (4.63%) .

The researchers clarify that the FipeZap index considers the advertising prices of new rentals. “It does not incorporate into its calculation the correction of current rents, the values ​​of which are periodically readjusted as specified in the contract,” they underline.

Sao Paulo, the country’s largest city, is the capital with the most expensive commercial square meter (m²) for rent. Check the ranking:

• Sao Paulo: R$54.40/m²
• Florianópolis: R$45.90/m²
• Rio de Janeiro: R$44.34/m²
• Salvador: R$42.34/m²
• Niterói: R$ 41.95/m²
• Campinas: R$40.83/m²
• Curitiba: R$36.74/m²
• Brasilia: R$35.24/m²
• Porto Alegre: R$34.39/m²
• Belo Horizonte: R$33.66/m²

Economist Paula Reis explains that the price difference between cities is due to reasons such as residents’ income, population density, scarcity of land and property, among others.

“It is worth underlining that, even between neighbourhoods, this variation is considerable, and above all the location of the property, considering the proximity to the business center and the region’s infrastructure, affects prices,” he adds.

Sale by city

The FipeZap Index also provides information on the value of sales of premises and commercial complexes, based on a sample of 63,989 advertisements.

In 2024 the average cost increased by 0.4%. The average sales price stood at R$8,421/m². Last year was the first with an increase since 2014. Of the twelve years of the survey, only 2013, 2014 and 2024 saw an increase in the average cost. In the case of residential properties, the average sales price increased by 7.73% in 2024.

Sales price inflation in 2024 was presented by Curitiba (7.16%), Salvador (5.5%), Niterói (2.4%), Florianópolis (1.8%), Sao Paulo (1, 33%) and Campinas (1.02%). On the other hand, Porto Alegre (-1.33%), Brasilia (-1.5%), Belo Horizonte (-2.04%) and Rio de Janeiro (-3.56%) fell.

Discover the ranking of the cities with the highest sales prices of commercial properties:

• Sao Paulo: R$ 10,142/m²
• Rio de Janeiro: R$8,505/m²
• Florianópolis: R$8,362/m²
• Curitiba: R$8,182/m²
• Niterói: R$7,838/m²
• Brasilia: R$6,647/m²
• Porto Alegre: R$6,376/m²
• Campinas: R$6,353/m²
• Belo Horizonte: R$6,196/m²
• Salvador: R$5,328/m²

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.