Real estate investment in SP yields from 2% to 20% since 21 – 05/14/2023 – Market

Although investment in real estate is one of the favorites of Brazilians, the return obtained with the appreciation of prices in the real estate market in recent years was well below inflation and fixed income.

Survey made at the request of Sheet by the property purchase and sale platform QuintoAndar shows that, from March 2021 to March 2023, the average price of the purchase contract negotiated in São Paulo increased by 5.32%.

The result is well below the inflation measured by the IPCA (National Consumer Price Index) in the same range, of 16.48%, as well as the CDI, which delivered a yield of 20.59%, according to platform data. TradeMap.

However, when broken down by region of the city, there is a relevant difference in the appreciation of property prices.

In the west zone of São Paulo, for example, which includes neighborhoods such as Butantã, Jaguaré, Panamby and Morumbi, the average price increase between March 2021 and March 2023 reached 20.11%.

On the other hand, the lowest appreciation in the period was seen by properties in the east zone, in neighborhoods such as Mooca, Tatuapé, Vila Ema and Vila Formosa, which saw an increase in the price per square meter of just 2.28%.

“Location makes a huge difference”, says Daniel Viana, director of real estate investments at Inter Asset.

“The better located the real estate development, the more the valuation dynamic tends to be different from the average”, endorses Bruno Nardo, partner at RBR Asset, a manager focused on the real estate market.

Cyro Naufel, institutional director of Grupo Lopes, says that the dynamics in the western region of the city is related to the high number of high-quality launches.

In the case of the south zone, the performance reflects the large number of studios launched in recent years, which tend to have an average ticket lower than the market average, says Naufel.

“Depending on the launch location, the price can vary a lot. Mainly in the south zone, where neighborhoods like Vila Nova Conceição, Brooklin, Moema, Campo Belo are extremely valued. In the extreme south, there are neighborhoods with lower values. consequently, it ends up interfering in the final price”, says the director of Grupo Lopes.

Economist at QuintoAndar, Vinicius Oike says that the pandemic has changed the preference of some families. “There was a price increase in regions with large apartments, in wooded regions, with less emphasis on centrality”, says the specialist.

The central region, on the other hand, has suffered from problems such as the closure of businesses and the increase in crime, with repercussions for prices practiced in the real estate market, says Oike.

Nardo, from RBR, adds that the time window considered to evaluate the performance of the real estate market in general also ends up having relevant weight for the result obtained by the investor.

Viana, from Inter Asset, recalls that the period considered by QuintoAndar’s survey coincides with the cycle of high interest rates promoted by BC (Central Bank), which took the Selic rate from the historic low of 2% to the current level of 13.75 % per year.

At times of rising interest rates, says Viana, the real estate sector tends to suffer from a drop in demand for financing, with negative impacts on the prices of projects already launched.

On the other hand, with the scenario ahead of a reduction in interest rates, the market tends to experience a recovery, with the current moment being a possible window of opportunity for investors with a focus on the long term, says the director of Inter Asset. “When interest rates fall, one of the first sectors to recover, and quickly, is real estate.”

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Center: Acclimation, Bela Vista, Bom Retiro, Center, Consolação, Liberdade, Santa Cecília

Midwest: Barra Funda, Jardim Paulista, Perdizes, Pinheiros, Vila Madalena, Vila Olímpia, Vila Pompéia

South Center: Bosque da Saúde, Brooklin, Campo Belo, Chácara Inglesa, Chácara Santo Antonio, Ipiranga, Moema, Paraíso, Saúde, Vila Mariana, Vila das Mercês

East: Mooca, Tatuapé, Vila Ema, Vila Formosa, Vila Prudente

North: Casa Verde, Parish of Ó, Santana, Vila Guilherme

West: Butantã, Jaguaré, Jardim Ester Yolanda, Panamby, Portal do Morumbi, Vila Andrade, Vila Sônia

South: Jabaquara, Jardim Marajoara, Vila Mascote