The survey examined two bedroom apartments (the range with the highest demand in the city) of 50 – 100 square meters in older buildings located in the regions of Perdizes, Jardins, Santana, Mooca e Tatuapé. These were all properties that were sold in 2009 and resold by the new owners in 2011.
The average price per square meter in these five regions was at R$4,970 in 2011, whether two years ago it was at around R$3,100, an average increase of 56%.
Price Increase by Region
Mooca: 80% (up to 175%)
A picture paints a thousand words (from our earlier SP housing post)
The price justification and the denial of a bubble
“The revitalization of neighborhoods has helped to improve the real estate market in São Paulo, which became more than ever, an excellent investment choice,” said Lello’s director Roseli Hernandez. For 2012, she believes that housing will remain a “safe and profitable” investment bet.
“There is no bubble in the housing market, since there is still a lot of credit and demand remains high. Therefore we have no indication that there will be any reduction in the price of used real estate. They will continue to appreciate in value and are a great option for investment. There is actually room for further appreciation, ” said Hernandez.
Our (ironic) opinion
With the comments above, real estate firm Lello has just joined the club of our “favorite real estate market forecasters”, alongside Consul Patrimonial. But one must admit: Consul Patrimonial still holds the comedy Oscar for predicting that the housing bubble in Brazil will pop only after 2017… that’s definitely a winner.