Should You Invest?
Returns on investment are considered superb and investors are
becoming increasingly aware of the high growth potential that
Brazil offers as a stable though fresh, new investment market.
- Active encouragement and incentives for foreign investment -
you can own 100% of land and property.
- Cost of living is only 20% of that in the UK/Europe and
property maintenance costs are also extremely low.
- Some of the lowest property prices in the world.
- Increasingly, thriving manufacturing industries are relocating
to Brazil and boosting the economy.
- Year-round sunshine, with average summer temperatures of
21°C.
- Great natural beauty with fantastic scenery and 7,000km of
beaches.
- Easy access via direct flights from many international
airports.
- Pro-landlord rental markets- with high rental yields in major
city centres.
- Large tourist industry also increases the demand for short-term
rental.
Rental Yields
A 50 sq.m. apartment in Sao Paolo can be expected to yield 9.6%
per annum. Larger sized units generally have lower yields, from
5.4% to 7.2%. Yields for apartments in the suburbs of Sao Paolo are
between 4% and 8%.
Properties in Rio de Jainero are slightly more expensive than in
Sao Paolo, but they also fetch higher rents and return higher
yields; from 7.5% to 9.6%. Yields for apartments in other cities
such as Fortaleza, Bahia and Brasilia are around 4% to 7%. Smaller
units generally have higher yields.
location
type of
property |
size
(m2) |
average
price
to buy
(US$) |
cost per
m2 to buy
(US$) |
average
price
to rent
(US$) |
cost per
m2 to rent
(US$) |
yield
(%) |
Sao Paolo-
Apartments |
|
|
|
|
|
|
| |
50 |
50,000 |
1,000 |
400 |
8 |
9.6% |
| |
100 |
100,000 |
1,000 |
600 |
6 |
7.2% |
| |
120 |
120,000 |
1,000 |
700 |
5.8 |
7.0% |
| |
150 |
150,000 |
1,000 |
800 |
5.3 |
6.4% |
| |
200 |
200,000 |
1,000 |
900 |
4.5 |
5.4% |
Sao Paolo Suburbs-
Apartments |
|
|
|
|
|
|
| |
50 |
25,000 |
500 |
150 |
3 |
7.20% |
| |
100 |
55,000 |
550 |
200 |
2 |
4.36% |
| |
200 |
70,000 |
467 |
300 |
2 |
5.14% |
| |
300+ |
90,000 |
450 |
600 |
3 |
8.0% |
Rio de Janeiro Centre-
Apartments |
|
|
|
|
|
|
| |
50 |
75,000 |
1,500 |
600 |
12 |
9.6% |
| |
100 |
135,000 |
1,350 |
900 |
9 |
8.0% |
| |
120 |
150,000 |
1,250 |
1,000 |
8.3 |
8.0% |
| |
150 |
240,000 |
1,600 |
1,500 |
10 |
7.5% |
| |
200 |
300,000 |
1,500 |
2,000 |
10 |
8.0% |
| |
250 |
350,000 |
1,400 |
2,500 |
10 |
8.6% |
Rio de Janeiro Suburbs-
Apartments |
|
|
|
|
|
|
| |
50 |
20,000 |
400 |
120 |
2.4 |
7.20% |
| |
100 |
50,000 |
500 |
170 |
1.7 |
4.08% |
| |
150 |
65,000 |
433 |
250 |
1.7 |
4.62% |
| |
200 |
90,000 |
450 |
500 |
2.3 |
6.67% |
Brasilia-
Apartments |
|
|
|
|
|
|
| |
50 |
60,000 |
1,200 |
300 |
6 |
6.00% |
| |
100 |
120,000 |
1,200 |
450 |
4.5 |
4.50% |
| |
150 |
170,000 |
1,133 |
570 |
3.8 |
4.02% |
| |
200 |
200,000 |
1,000 |
700 |
3.5 |
4.20% |
| |
250 |
250,000 |
1,000 |
1,000 |
4 |
4.80% |
Fortaleza-
Apartments |
|
|
|
|
|
|
| |
50 |
45,000 |
900 |
250 |
5 |
6.67% |
| |
100 |
90,000 |
900 |
300 |
3 |
4.00% |
| |
150 |
130,000 |
867 |
450 |
3 |
4.15% |
| |
180 |
150,000 |
833 |
500 |
2.8 |
4.00% |
| |
200 |
180,000 |
900 |
800 |
4 |
5.33% |
| |
250 |
300,000 |
1,200 |
1,000 |
4 |
4.00% |
Bahia-
Apartments |
|
|
|
|
|
|
| |
50 |
35,000 |
700 |
200 |
4 |
6.86% |
| |
100 |
70,000 |
700 |
350 |
3.5 |
6.00% |
| |
150 |
100,000 |
667 |
450 |
3 |
5.40% |
| |
200 |
150,000 |
750 |
500 |
2.5 |
4.00% |
| |
250 |
180,000 |
720 |
700 |
2.8 |
4.67% |
Source:
Global Property Guide
Price History
Prices in Brazil have been relatively unstable over the past few
years, and Brazil experienced a decrease in property prices after
the devaluation of its currency in 1999. In the four years leading
up to 2005, property which had previously been sold for R$150,000
(£38,000/$65,000) went down to less than R$100,000
(£25,000/$42,000). Prices are therefore still relatively cheap but
with the economy now stable there is a strong basis for property
prices to climb again. Prices for a detached villa start at around
£15,000, although a significant premium will be added to property
close to Rio. Prices are also higher in the popular regions of
North-East Brazil.
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