Manaus’ free-trade zone cushions rental falls in Brazil: AIRINC

Economic uncertainty in Brazil is dampening demand for rental property in the country’s key cities, new data from AIRINC suggests.

Sugarloaf Mountain and cable car
Fragile confidence in Brazil’s economy and the government’s ability to improve the nation’s financial prospects is affecting the accommodation rental market at every level, according to the latest quarterly data snapshot from the global mobility data provider and consultancy.As well as its domestic issues, South America’s largest economy by GDP is also being hit by the global oil price decrease.Falling demand from foreign oil and gas operators is feeding through to a downturn in expatriate demand for accommodation, notes AIRINC in its Datapoints newsletter for Q3 2015.“Rio and Sao Paulo have both seen falling prices, increased negotiation and the highest availability of units in years, even in the most desirable areas,” it reports.Less affected according to AIRINC’s analysis is Manaus, the capital of the inland Amazonas state. It finds that the rental market has not fallen as much thanks to the presence of the free-trade zone, which “continues to draw domestic and international employers to the city, especially those working in the industrial sector or with manufacturing and assembly plants.”Follow the links for more Re:locate news and features on Brazil and Latin America.