Brazil is fast becoming one of the best options for international investment, both for internal and global situations. Diversity and vastness are its main features, besides its really low prices, compared to the global market.
When comparing a property in Europe, with another one with exactly the same features in Latin America, we can talk about prices differences that range from four, six, or even ten times cheaper. For example, a two bedrooms apartment in London costs about US$600,000, while a similar one in São Paulo, is around US$150,000.
Property prices in developed countries can’t grow forever. They are more likely to stabilise, if not, to drop after the well known “real estate bubble” bursts.
On the other hand, in São Paulo property prices have just started to react to the increase of demand. Despite circumstantial economic ups and downs, price tendencies are definitively on the raise.
The average rental yield for a property in Brazil is about 10% to 12% a year, over the value of the property, for permanent rentals. For holiday rentals, it may vary, depending on the area the property is located and the demand it faces in a particular period of time. It is commonly higher, but seasonal variations it make it harder to estimate average profits.
In case you need more information or have doubts on any of these issues, I will be glad to answer all your questions.
Brazil’s tourism is undeniably doing well, and as more people go into the country, demand for short-term rentals increases. There is also a noticeable increase in interest in foreign property ownership. Some of the tourists opt to buy vacation homes for their frequent visits, or even buy to move into the country.
Rio de Janeiro still remains the more popular city for foreigners but São Paulo is the most important business city.
Apartments in the centres of Sao Paulo can cost around US$1,000 per sq. m. On the other hand, apartment prices in Rio de Janeiro are more expensive, at US$1,250 to US$1,600 per sq. m.
Despite the influx, foreigners still make up a small portion of property buyers in the market and I would like to help you to perform your real state investments in Brazil.