The residential rental markets in São Paulo and Rio de Janeiro recorded, in May 2025, the lowest cumulative price increases since the beginning of 2022. The data comes from the QuintoAndar Imovelweb Rent Index, released this Tuesday (10). According to the index, the results indicate a significant slowdown in rental price appreciation in Brazil’s two largest metropolitan areas. However, rent growth is still outpacing inflation.

In São Paulo, average rental prices rose by 8.68% in the 12 months ending in May 2025. Although still positive, this is the lowest annual growth rate recorded for the city since April 2022. The result marks a shift in the São Paulo market, which had seen year-over-year increases around 9% over the past two years. In May, the average price per square meter reached R$ 68.91 — 0.12% higher than in April.

In Rio de Janeiro, the situation is similar. The capital of Rio State saw an accumulated rental price increase of around 10.13% over the same 12-month period, also the lowest level in three years. Last month, the average price per square meter reached R$ 45.50 — 0.38% higher than in April.

According to Thiago Reis, Data Manager at QuintoAndar Group, this moderation in growth does not indicate weakening demand in either market.

“It’s a good sign for renters looking for new housing options, as slower price growth tends to make the rental market less volatile. For property owners, it’s important to highlight that, even with the slowdown, the cumulative appreciation still remains above inflation, protecting the value of their assets. The market remains active,” says Reis.

In May 2025, the IPCA-15 (Brazil’s consumer price index preview) showed an accumulated inflation rate of 4.07% over the previous 12 months — a level lower than the rent index in both capitals.

One indicator of the market’s strength is the discount rate. In May, the average discount on signed rental contracts in São Paulo was 2.7%, matching the level seen in April — the lowest recorded since the beginning of the series in 2020. In Rio, the average discount rate was 2.2%.

The discount rate is calculated based on the difference between the listed rental price and the amount actually paid for properties negotiated during the reference month. This metric reflects the market’s heat, as it captures real negotiations between landlords and tenants based on finalized contracts.