Real estate startup Quinto Andar has released a ranking on the cost of housing in some of Latin America’s top cities, with Buenos Aires, Argentina, leading the ranking of the most expensive city in terms of housing.
In addition to the Argentine capital, the study evaluated the real estate markets of Mexico City, Panama City, Lima (Peru), Quito (Ecuador) and the Brazilians São Paulo, Brasília, Rio de Janeiro, Curitiba, Belo Horizonte, Salvador and Porto Alegre. .
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According to the survey, the most expensive square meter (m²) is in Buenos Aires with an average of US$ 2,479 (R$ 13,417) per m². On the other hand, some of the Brazilian cities appear at the other end of the ranking, among the cheapest to live in.
The city of Porto Alegre (RS) appears as the cheapest, with an average price of US$ 990 (R$ 5,358) per m². Salvador, Belo Horizonte and Curitiba are also among the cheapest, as is Quito, all costing less than US$ 1200 (R$ 6,500) per m².
Brasília (DF) appears in the ranking as the most expensive city in Brazil, with an average of US$ 1,866 (R$ 10,099) per m². Then come Rio de Janeiro with US$ 1,784 (R$ 9,655) and São Paulo with US$ 1,725 (R$ 9,336) per m².
Income commitment and purchase term
Another important aspect that the study points out is about the commitment of income to housing in Latin American cities. According to Quinto Andar, only Curitiba, Porto Alegre and Rio de Janeiro had an average percentage of income allocated to housing below 30% (limit recommended by experts).
In addition, the data are also not positive in terms of the time taken to purchase a property in each city. According to the survey, of the 12 cities analyzed, only Belo Horizonte was below average between seven and ten years of family income commitment to the acquisition of a home of their own.
Despite this, even in the capital of Minas Gerais, the indicator is considered “worrying”, since it is just below seven years.
Check the full ranking
Methodology
To standardize the comparison of prices between the countries in the study, only the purchase/sale and rent announcements of apartments were selected.
For the analysis of the most used search filters, both apartments and houses and all filters accessible on the websites were considered. When comparing cost of living and purchasing power, a conversion was made to dollars (US$).
This type of currency conversion adjusts the different exchange rates to domestic fluctuations in the price level and allows for a better comparison of the cost of living and the purchasing power of the population in the countries. The exchange rates in purchasing power parity, ppp (purchase power parity), were extracted from the World Bank.
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