Rental prices in Belo Horizonte have increased by 19.35% in the last 12 months. However, the pace of growth is slowing. In October, the average rental price per square meter in the city stood at R$32.68. In other words, renting a 100 square meter apartment costs an average of R$3,268 per month. Data is from the QuintoUnder ImmovableWeb Rental Index.
“This is a movement that has happened in other cities across the country. In the case of Belo Horizonte, this increase is still representative and higher than that of the other four capitals analyzed by the indicator”, says Pedro Capetti, data specialist at Grupo Quinto, referring to São Paulo (9.51%), Rio de Janeiro (13.17%), Curitiba (19.19%) and Porto Alegre (14.28%).
However, the average price per square meter in Belo Horizonte (R$32.68) is still lower than São Paulo (R$59.18), Curitiba (R$42.38) and Rio de Janeiro (R$38.29). Only in Porto Alegre (R$31.52), the average price of m² is lower than in the capital of Minas Gerais.
Thiago Reis explains, “The index data clearly shows that the country’s main capitals, such as Belo Horizonte, experienced a very strong period of price acceleration last year, mainly due to the recovery from the impact of Covid on the real estate market ” , Data Manager at Grupo Quintoender.
But experts say the upward cycle is already showing that it is losing strength. “We are seeing prices rising, but at a lower intensity, due to very high levels that far outweigh the damage caused by the health crisis. So the indicator shows that the cumulative increase over 12 months actually reaches almost 20% in BH and also in Curitiba. But when we compare these percentages between the end of last year and the beginning of this year, we find that there is a clear slowdown.
According to Pedro Cappetti, evidence of this scenario is that half of the neighborhoods monitored by the indicator have seen a decline in prices in the capital of Minas Gerais over the past three months.
“This list has grown and includes neighborhoods that have seen consistent price increases, such as Carlos Prates and Prado for example. This is indicative of value housing across the city”, Cappetti highlighted.
Data from Quintounder ImmovableWeb Rental Index shows that consumers still find room to negotiate. The average discount for transactions made in September was 3.2% – 0.2 percentage points higher than that recorded in the previous month.
“It is worth bargaining. For tenants, it is a way to keep the amount in their pockets in these difficult times. For the owner, it is an opportunity not to leave the apartment idle and bear the same costs as a condominium”, says Cappetti.
Check out the list of the 5 neighborhoods that have increased in value the most in the last three months in BH:
- Cruzeiro – 26.1%
- Manakas – 25.2%
- Santa Cruz – 13.9%
- Cidade Nova – 11.5%
- Luxembourg – 10.0%