Residential rental value drops 0.61% in 12 months, according to FGV

The Residential Rent Variation Index (Ivar) is the new indicator used by FGV / Ibre. Photo: Albari Rosa / Arquivo / Gazeta do Povo

The Brazilian Institute of Economics of Fundação Getulio Vargas (FGV / Ibre) launched this Tuesday (11) a new indicator to measure the variation in prices of residential rents. The Residential Rent Variation Index (Ivar) uses information from contracts signed between landlords and tenants, negotiated by property management companies in São Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre.

In December, Ivar rose 0.66%, a slowdown from 0.79% recorded in November. The 12-month index was -0.61% in December, compared to 0.70% in November. In previous years, the annual rate was -5.08% in December 2019 and 4.08% in December 2020.

According to FGV / Ibre, the difference in statistical methodology generates a significant difference between the Ivar and the evolution of rents measured by traditional indices. The Residential Rent sub-item of IPCA-15, from the Brazilian Institute of Geography and Statistics (IBGE) increased by 6.98% during the 12-month period in December, while the weekly index consumer prices (IPC-S), FGV / Ibre, the increase was 4.45%.

According to FGV / Ibre researcher responsible for the Ivar methodology, Paulo Picchetti, the new indicator captures nuances that others do not reflect. The four cities that make up the Ivar recorded a deceleration over the 12-month period, with São Paulo falling more than the national average, with -1.83%.

The decline in Porto Alegre was -0.35% and Belo Horizonte and Rio de Janeiro saw increases of 1.46% and 0.46%, respectively. The statistics of the new indicator will be integrated into other indices produced by FGV, such as the IPC-S and the IGP-10. With information from Agência Brasil.

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