The Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV IBRE) launched on the 11th the Residential Rent Variation Index: IVAR/FGV. The new indicator will be calculated based on data collected from contracts signed by tenants and landlords in four capitals – Rio de Janeiro, São Paulo, Porto Alegre, and Belo Horizonte, obtained by FGV IBRE from real estate management companies.
The objective is to measure the evolution of prices and fill a gap in national statistics in this niche.
The index uses negotiated rental values rather than listing data as the basis for calculation. This includes data such as the values of new contracts and adjustments to existing contracts, in addition to the characteristics of each property.
The statistical methodology employed allows for the robust measurement of the average variation in rents over time, better reflecting the scenario – supply and demand – of the residential property rental market.
The IVAR/FGV will be released monthly and, in January 2022, will become part of the fixed release calendar of FGV IBRE’s indices, indicators, and surveys.
Source: Portal Ibre
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