The residential rental market in Belo Horizonte recorded its first price drop in June after 30 consecutive months of appreciation, the longest streak ever recorded by the QuintoAndar Imovelweb Rental Index.
The index showed a decrease of 0.91% compared to May in the city’s average price per square meter, which now stands at R$ 41.29. The last time the index had registered a negative monthly variation was in November 2022. Despite the one-off drop, the accumulated appreciation over the last 12 months is still significant, reaching 13.41%.
The first half of 2025 ended with an accumulated increase of 7.64% in rental prices in Belo Horizonte — the lowest since 2021. In 2022 and 2023, the increase was 12.77% and 17.56% for the same period. Last year, between January and June, the average price rose by 7.94% — slightly higher.
“This semester had a unique dynamic. It represents the end of the longest appreciation cycle ever measured in Belo Horizonte. The coming months will be crucial to understand if a stabilization trend will consolidate,” says Thiago Reis, Data Manager at Grupo QuintoAndar.
The recent movement was mainly influenced by the price drop for one-bedroom properties, which fell by 2.82% in the month. The other categories, two and three-bedroom properties, also showed a decrease of 0.42% and 0.63%, respectively, which also contributed to the overall result.
Limited Negotiating Power
Despite the drop in the average rental price, negotiating power for tenants in Belo Horizonte remained limited. The average discount obtained in transactions in June was only 2%, a slight decrease of 0.1 percentage points compared to May. This is the second-lowest discount percentage registered in the entire historical series. This level indicates that the demand for properties in the city remains strong, leaving little room for tenants to bargain for lower prices.
Luxemburgo: At the Top of the Ranking
The first half of 2025 also consolidated the appreciation of the Luxemburgo neighborhood, in the Center-South region of BH. In June, the area was elevated, for the first time, to the position of the most expensive in the city, with a square meter price of R$ 68.70. This placed it ahead of traditional areas like Savassi, Lourdes, Anchieta, and Barro Preto. The neighborhood has seen a price increase of almost 60% this year alone.
“This is a region that is already traditionally highly desired and sought after, both for its location and its infrastructure. And, in recent times, Luxemburgo has seen its property supply renewed with high-end developments. This has raised the average rental prices throughout the neighborhood,” says Reis.