March 22, 2011 at 1:08 pm #274412
Anyone in the know have any predictions on how the rental market with play out this and next year in SP capital? I’m back in the market and am pretty shocked by the prices in the city center and outskirts. I spoke to one real estate agent and he said for the moment ‘os precos estao parados’. And some people are offering to pay the condominio and/or IPTU as an incentive. Anyone think prices will go down in the capital. And is it possible that outside the capital we will see a real reduction in prices?
March 23, 2011 at 9:48 am #274425
I only have anecdotal evidence, as the owner of an upscale rental unit near Avenida Paulista.
We have owned for well over a decade. Sometimes we used it ourselves as a city pad, but for most of those years it has been on the rental market.
In the past it usually never stayed empty for more than a month at the most. It is a nice little condo, well decorated, extremely well located, and we have never been greedy when it came to setting the rental rate: Always keeping it lower than similar units in the same area.
However, I moved out last year and this time it took nearly six months before we got it rented.
We finally did sign a contract and a renter moved in, but it stood empty for a lot longer than at any time in the past. So based on this limited sample of one, I’d say that the market is definitely weak. Prices probably won’t go down a lot in nominal terms, but in real terms they will because they certainly won’t increase in line with inflation (or with the dollar, or any other half-serious currency). It is a buyer’s market like nothing we’ve ever experienced in the past 10+ years of investing in real estate in Brazil.
The strong hands, like us, who can afford to keep their units empty will just do that until someone shows up and pays asking price. Weak hands will be forced to either sell or lower their prices.
March 23, 2011 at 10:13 am #274426
There is also a glut of new properties coming onto the market still in central SP – most of which seem to be 1 or 2 bed properties between 34 and 50 square metres, many of which will go for rental. As Picolino mentions, there are plenty of people who will be forced to undercut and then devalue the market value out of necessity, which in theory can create a downward spiral.
March 23, 2011 at 11:01 am #274427
We had a posting last week where we briefly discussed this index of prices (ofertas).Take a look at the bottom index, the ESTAT√É¬çSTICAS ZAP IM√É‚ÄúVEIS.Look for the alugel, not the vendas. You will see that rental asking prices in Sao Paulo have basically been stable for the past year and in the surrounding ABC area the prices have actually in many cases dropped. Again, this is asking price so who knows what the agreed prices were.
March 24, 2011 at 3:19 pm #274456
Well, I’ve been checking on the current situation recently… Actually,according to some news the Brazilian real estate marker is strong enough.However, the prices are getting lower, I have checked it here: https://siteimovel.com/sao-paulo/, this site represents clear image about the current situation.But I would advise you to follow the current political news, because due tosome circumtances we can expect changed, you know.
March 24, 2011 at 4:06 pm #274458
That’s a useful link, although i couldn’t get it to give me an average of the whole SP metropolitana area, just to get an idea of which way the wind is blowing in general. I saw for my bairro prices for both aluguel e venda still increased from this time last year. It’s got to slow down IMO or it’s going to price everyone out of the market.
[QUOTE=Steven]We had a posting last week where we briefly discussed this index of prices (ofertas).Take a look at the bottom index, the ESTAT√É¬çSTICAS ZAP IM√É‚ÄúVEIS.Look for the alugel, not the vendas. You will see that rental asking prices in Sao Paulo have basically been stable for the past year and in the surrounding ABC area the prices have actually in many cases dropped. Again, this is asking price so who knows what the agreed prices were.
April 2, 2011 at 10:23 pm #274628
Rental process here is way too complicated. They can blame the market for all they wish, but landlords get on the way when it comes to get it rented.
Look, I am not saying we have a share of tenants from hell. Nonetheless units without appliances ,
Bureaucratic rental code, excessive rental insurance.
How often do we see here roommates taking up on a 2,3,4 bedroom unit ?
And landlords here, aren’t them the most nitty picky kinds on earth or what ?
So the inventory is flooded. Do you see any landlord being aggressive with paying the broker
Fee at the crunch time as NY and Boston landlords do? Noooooooo
So, what gives ?
Then again, Brazilian would be tenants are a fussy lot. Here and abroad. Bunch of P…es! They all want some type of discount.
I hs a rare case of a tenant wanting to pay a year’s worth of rent up front. His credit on a crapper, nonetheless a legit circumstance. A year’s rent on the bank. Asked a little discount. Landlord refuses and then sents him to Get Porto Seguro. Because he banks irregular payments on commission , he would have to fork over 8 months to Pirto Seguro plus rent to landlord.
Most people will not rent these pads and will go outside city proper to get affordable rent.
March 23, 2015 at 1:07 pm #28331
June 6, 2017 at 9:13 pm #311119
The rental market has picked up considerably. Just the gap of haves and have nots, and the fact a Home Mortage is an expensive proposition for most working stiffs.
Expect rental demand to increase and rates to increase in the coming years.
It is gradually becoming a seller’s market.
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