Residential Rental Prices in Brazil Set to Remain High in 2026 Amid Inflation and Interest Rate Pressures
Brazil’s residential rent prices surged in 2025 and are expected to remain high in 2026 due to inflation and limited housing supply, impacting major cities like Rio de Janeiro and São Paulo.
- • Residential rents rose 8.85% on average in 2025.
- • IVAR increased 0.51% in December 2025, pushing annual rent growth higher.
- • High interest rates and persistent inflation are expected to keep rent increases elevated in 2026.
- • Rio de Janeiro saw the largest annual rental price rise at 12.11%, followed by São Paulo at 9.48%.
Key details
The residential rental market in Brazil is experiencing significant upward pressure heading into 2026, following an 8.85% average price increase in 2025. According to the Fundação Getulio Vargas Institute of Economic Research (FGV IBRE), the Residential Rental Variation Index (IVAR) rose by 0.51% in December 2025 alone, further intensifying annual rent adjustments.
Economist Matheus Dias of FGV IBRE attributes these price hikes largely to persistent inflation, service cost inflation, and the need for price recomposition in the rental sector. He indicates that rent increases in 2025 slightly outpaced those seen in 2024. For 2026, expectations point to continued elevated rent adjustments due to enduring high interest rates, ongoing inflationary pressures, and a constrained supply of rental properties, especially in central urban areas.
Among major capitals, Belo Horizonte recorded the highest monthly rent increase between November and December 2025 at 1.11%. Over the entire year, Rio de Janeiro led rental price surges with a 12.11% rise, followed by São Paulo at 9.48%. Other cities such as Porto Alegre and Belo Horizonte showed some deceleration in rent growth, but the overall national trend remains upward.
These figures highlight the challenges renters face as economic factors drive up housing costs, with affordability concerns growing for many residents in Brazil’s urban centers.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
