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Airbnb in Florianópolis: is it really profitable?

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Authored by the expert who managed and guided the team behind the Brazil Property Pack

property investment Florianópolis

Yes, the analysis of Florianópolis' property market is included in our pack

Florianópolis has emerged as one of Brazil's most attractive Airbnb markets, with median monthly revenues reaching $768 and top performers exceeding $2,500. The island city's unique combination of tech sector growth, digital nomad influx, and limited supply creates compelling opportunities for short-term rental investors.

If you want to go deeper, you can check our pack of documents related to the real estate market in Florianópolis, based on reliable facts and data, not opinions or rumors.

What's the current average price per square meter in Florianópolis?

Property prices in Florianópolis currently average R$12,000-13,000 per square meter citywide as of September 2025.

Prime neighborhoods like Jurerê Internacional and Córrego Grande command R$14,169-17,435 per square meter, with luxury beachfront properties reaching R$15,000-20,000 per square meter. These premium areas offer the highest Airbnb potential due to their desirable locations and amenities.

Central apartments and tech-adjacent areas maintain the R$12,000-13,000 range, making them attractive for investors seeking a balance between entry cost and rental potential. The tech sector proximity in areas like Córrego Grande has driven significant price appreciation, with 16% growth in the past year alone.

When converted to US dollars at current exchange rates, these prices translate to approximately $2,800-3,400 per square meter citywide, making Florianópolis competitive compared to other international markets while offering strong local demand dynamics.

How have property prices in Florianópolis changed over the past 3 to 5 years?

Florianópolis property prices have experienced remarkable growth, increasing approximately 60% over the past five years from R$6,500 per square meter in 2020 to R$10,400-13,000 per square meter in 2025.

The most recent year (2024-2025) showed continued momentum with average citywide growth of 9.98%, significantly outpacing Brazil's national average. Tech-adjacent neighborhoods like Córrego Grande led the market with 16% annual growth, reflecting the city's transformation into a technology hub.

This appreciation has been driven by multiple factors including digital nomad influx, tech sector expansion, limited developable land on the island, and infrastructure improvements. The price trajectory has consistently exceeded São Paulo and Rio de Janeiro in certain property categories, establishing Florianópolis as a premium Brazilian market.

It's something we develop in our Brazil property pack.

What's the forecast for real estate prices in the next 12 to 24 months?

Property prices in Florianópolis are expected to appreciate 3-7% annually through 2026, with premium areas likely achieving growth at the upper end of this range.

The forecast is supported by continued tech sector expansion, sustained remote worker attraction, and ongoing infrastructure upgrades including the recently completed 50km ring road project. Limited developable land on the island continues to constrain supply while demand remains robust.

Premium neighborhoods with beachfront access or tech sector proximity are positioned for stronger appreciation, potentially reaching 7% annual growth. Central and emerging areas may see more moderate but steady growth in the 3-5% range, still outperforming most other Brazilian cities.

Florianópolis is expected to maintain its position as one of Brazil's top-performing real estate markets due to its unique combination of lifestyle appeal, economic drivers, and supply constraints that favor property owners and Airbnb investors.

How high are interest rates for mortgages in Brazil right now?

Brazil's mortgage interest rates currently range from 10.9-11% as of September 2025, reflecting the country's benchmark Selic rate of 15%.

These rates represent multi-decade highs and significantly impact affordability for leveraged property purchases. The high financing costs mean most successful Airbnb investors in Florianópolis are cash buyers or use minimal leverage to maximize returns.

For foreign investors, the high local interest rates create both challenges and opportunities. While borrowing locally is expensive, cash purchases become more attractive, and properties can be acquired at better relative values compared to markets with lower interest rates.

The elevated rates also reduce competition from leveraged buyers, potentially creating better acquisition opportunities for well-capitalized investors targeting the Airbnb market in prime Florianópolis locations.

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What's the rental yield like in Florianópolis for Airbnb properties?

Airbnb rental yields in Florianópolis range from 3-7% depending on location and property type, with emerging neighborhoods offering higher returns than established premium areas.

The Airbnb market shows strong performance with median monthly revenues of $768, while top 10% of properties exceed $2,500 monthly. High-season occupancy can reach 66%, with annual averages typically running 43-50%, providing consistent income streams for well-managed properties.

Central established areas tend toward the lower end of the yield range (3-5%) due to higher property prices, while emerging neighborhoods can achieve 5-7% as entry costs remain lower relative to rental potential. Properties with modern amenities, high-speed internet, and walkable locations command premium rates.

Luxury beachfront properties can generate R$10,000+ monthly in long-term rentals, with Airbnb rates significantly higher during peak season (December-March). The combination of strong domestic and international demand creates multiple revenue streams for property owners.

Is there strong demand for both buying and renting in Florianópolis?

Florianópolis demonstrates robust demand in both buying and rental markets, with demand consistently exceeding supply in core and premium neighborhoods.

Key demand drivers include the growing tech sector attracting remote workers, university students, Brazilian professionals relocating for lifestyle reasons, and international buyers particularly in the luxury segment. The city's transformation into a technology hub has created sustained professional migration.

Properties with modern amenities, reliable high-speed internet, and walkable locations see the strongest demand across both markets. The digital nomad and remote worker influx has created year-round rental demand that supplements traditional seasonal tourism patterns.

The rental market benefits from diverse tenant types including long-term residents, university students, seasonal tourists, and the growing population of remote workers and digital nomads who value Florianópolis' lifestyle and infrastructure quality.

Are there any upcoming infrastructure projects that could affect property values?

The major Greater Florianópolis Ring Road project was completed and became operational in 2025, already beginning to impact property values positively across the region.

This 50km ring road with four large tunnels has redirected heavy traffic, improved access to western and southern neighborhoods, and enhanced overall connectivity. The infrastructure upgrade is particularly beneficial for previously less accessible areas, creating new investment opportunities.

Ongoing improvements include telecommunications infrastructure upgrades, digital connectivity enhancements, and targeted neighborhood revitalizations that continue adding value, especially for tech-driven areas. These improvements support the city's position as a technology hub and remote work destination.

Public amenity upgrades and continued investment in the city's digital infrastructure further support property values and rental demand, particularly important for the Airbnb market which relies heavily on connectivity and accessibility.

What are the seasonal trends in the Florianópolis property market?

Florianópolis experiences distinct seasonal patterns with high season running December through March, coinciding with summer, Carnival, and school holidays.

Season Period Airbnb Performance
High Season December - March Premium rates, up to 66% occupancy, peak revenues
Shoulder Season April - May, September - November Moderate rates, stable occupancy from residents
Low Season June - August Lower tourist rates, digital nomad demand stabilizes income
Festival Periods Carnival, New Year Premium pricing, highest demand, advance bookings essential
University Terms March - November Steady local demand from students and professionals

The growing digital nomad and remote worker population helps stabilize occupancy throughout the year, reducing traditional seasonal volatility. Properties targeting this segment maintain more consistent year-round performance.

It's something we develop in our Brazil property pack.

infographics rental yields citiesFlorianópolis

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Brazil versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Are there any legal or tax changes expected that could impact Airbnb investors?

Foreign property ownership regulations remain stable with no major restrictions for residential buyers, though certain beachfront and rural areas maintain some limitations.

Tax reforms are underway with progressive adjustments to property and investment taxes, including new property transfer rules and updates to IPVA regulations. A new VAT-like tax consolidation (ICMS, COFINS) is being implemented but primarily impacts commercial activity rather than residential buyers.

Starting January 2026, some real estate funds will lose certain income tax exemptions, prompting strategic acquisitions before this deadline to benefit from existing protections. This change affects institutional investors more than individual property owners.

For Airbnb operators, current regulations allow short-term rentals with proper registration and tax compliance. The stable legal framework for foreign ownership and rental operations supports continued investment in the sector.

How is the supply of new properties compared to demand in Florianópolis?

New property supply in Florianópolis remains constrained by the island's restrictive geography, with single-family housing starts up only 12% in 2025 despite strong demand.

Demand from digital nomads, tech professionals, and lifestyle seekers continues to outpace new supply in most desirable areas, supporting continued price growth and rental rate increases. The supply-demand imbalance is particularly pronounced in premium neighborhoods and areas with tech sector proximity.

The limited developable land on the island creates natural supply constraints that benefit existing property owners and investors. New construction faces regulatory hurdles and geographic limitations that prevent significant supply expansion.

This supply-demand dynamic strongly favors Airbnb investors as limited new competition enters the market while demand continues growing from multiple sources including remote workers, tourists, and domestic migration.

What are the risks of currency fluctuations for foreign Airbnb investors?

Currency volatility presents both risks and opportunities for foreign investors in the Florianópolis Airbnb market, with the Brazilian Real's fluctuations affecting investment returns.

For investors earning in USD or EUR, short-term currency swings can impact returns when converting rental income and property appreciation back to their home currency. However, rising property prices and rental income provide some natural hedge against currency depreciation over time.

Brazil's cost structure can amplify returns for foreign investors when the Real is undervalued relative to their home currency, making property acquisitions more attractive. Conversely, Real appreciation after purchase can reduce returns when measured in foreign currency terms.

Airbnb income diversification helps mitigate currency risk, as properties can generate revenue from both domestic Brazilian guests (paid in Reals) and international travelers (often paying in USD), providing some natural currency hedging for rental income streams.

How does the Florianópolis property market compare to other Brazilian cities for Airbnb investment?

Florianópolis consistently outperforms most other Brazilian cities in property appreciation and rental market dynamics, making it one of the country's premier Airbnb investment destinations.

City 5-Year Price Growth 2025 Rental Yield Airbnb Market Strength
Florianópolis +60% 3-7% Strong - tech hub, limited supply, tourism
São Paulo +63.9% 3-5% Large market, business travel, high competition
Rio de Janeiro +54.3% 2.5-4% Strong tourism, safety concerns in some areas
Salvador +70.8% 4-7% Emerging market, cultural tourism, lower prices
Curitiba +50% 4-6% Steady growth, business hub, larger supply

Florianópolis now routinely exceeds São Paulo and Rio de Janeiro in average house prices and is considered one of Brazil's most resilient and investor-favored markets. The city's unique combination of lifestyle appeal, tech sector growth, and supply constraints creates compelling investment fundamentals.

It's something we develop in our Brazil property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. TheLatinvestor - Florianópolis Price Forecasts
  2. TheLatinvestor - Florianópolis Real Estate Market
  3. Numbeo - Florianópolis Cost of Living History
  4. TheLatinvestor - Brazil Price Forecasts
  5. Economy.com - Brazil Lending Rate
  6. Trading Economics - Brazil Interest Rate
  7. AirROI - Florianópolis Airbnb Report
  8. AirDNA - Florianópolis Vacation Rental Data