All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Thinking about purchasing a property in Brasília? You're not alone!
Many people are fascinated by Brasília's modernist architecture and dream of owning a contemporary apartment or a stylish townhouse.
Is it worth investing there, though? Are property prices increasing in Brasília? What is the price per sqm? Should you consider investing in Plano Piloto or Asa Norte? Are there any secret taxes? Where are the best yields?
We've solved it for you.
At TheLatinvestor, we've done our homework on this market. Actually, we have condensed all our findings in a pack. Get it now.
In this article, get ready to receive valuable insights from us.
How's the real estate market in Brasília?
Is the property market going up or down? People have different ideas. Us? We rely on the latest data and stats for accurate answers.
In Brasilia, you can find a variety of properties for sale to suit different preferences and needs.
These include apartments with varying sizes and amenities, ranging from cozy one-bedroom options to spacious penthouses; houses with different architectural styles, such as modern designs or traditional homes; and commercial properties like offices and shops located in various parts of the city.
Whether you're looking for a comfortable residence or a business space, Brasilia offers a range of property types to choose from.
You can also acquire vast plots of land if you look around areas like Park Way.
Should you buy or rent?
(If you're buying for yourself and not to rent out)
If Brasília is your city of choice, you may be pondering the buy vs. rent decision in this planned capital of Brazil.
Obviously, it's better to buy if you are looking for an investment with potential long-term value appreciation.
Actually, the property price-to-rent ratio is a good metric to look at for this kind of decision. This metric give an indication of how many years of rental income it would take to cover the cost of buying a property at its current price.
According to Numbeo, the property price-to-rent ratio in Brasília is around 21.78, which is around the world average.
To put it simply, it will take you an average of 22 years of rental payments to buy a property in Brasília. However, renting for a long time won't let you build ownership or save money for the property.")
Housing prices in Brasília
On average, according to the last data from FipeZAP, buying a property in Brasília will cost you around $2,210 per square meter.
Obviously, there are some big differences. A luxury house in Lago Sul may have a higher price per square meter than a condo in Asa Norte. We actually give you a more detailed breakdown in our pack for buying property in Brasília and in Brazil.
To put things in perspective, it means that, instead of buying an apartment in Manhattan, you can get 6 properties in Brasília.
Also, housing prices in Brasília are 47% cheaper than in São Paulo.
The most expensive neighbourhoods in Brasília are probably Lago Sul and Lago Norte, while the cheapest are Park Way and Estrutural.
First and foremost, we have to acknowledge that Brazil is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 73.9.
It is something to have in mind when wondering whether it's a good investment to buy a property in Brasília.
Also, according to the IMF’s forecasts, Brazil's economy is expected to soar by 7.5% in the coming 5 years, resulting in an average GDP growth rate of 1.5%.
If you want to invest in real estate in Brasília it's a good thing because it means people are getting richer and then housing prices are likely to increase.
Also, in Brazil, the average GDP per capita has changed by 3.2% over the last 5 years. It's not much, but the growth is here.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Brazil right now.
Buying property in Brasília
It can be difficult to buy property in Brasília due to the lack of reliable and up-to-date information available for buyers. That's why we have created the pack to buy property in Brasília and in Brazil.
In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.
Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.
This is the step-by-step process to purchase a property in Brasília:
- Obtain a CPF (Cadastro de Pessoas Físicas) - Brazilian tax ID number.
- Hire a CRECI-registered real estate agent.
- Search for properties with necessary land-use permits (Habite-se).
- Verify the property's "Certidão de Ônus Reais" for any encumbrances.
- Conduct thorough inspections, checking for structural certifications (Laudo de Vistoria).
- Negotiate and sign a "Contrato de Promessa de Compra e Venda" (Promise of Sale and Purchase Agreement).
- Pay a deposit, typically around 10% of the property value.
- Conduct a title search at the "Cartório de Registro de Imóveis."
- Secure financing, if required, with local banks or lenders.
- Finalize the property transaction at a notary's office (Escritura Pública).
- Pay the "Imposto de Transmissão de Bens Imóveis" (ITBI) - property transfer tax.
- Register the property in your name at the "Cartório de Registro de Imóveis" and obtain the updated "Matrícula do Imóvel."
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Brazil.
Make a profitable investment in Brasília
Better information leads to better decisions. Save time and money. Download our guide.
Where to find a property
Explore these websites to find properties in Brasília, Brazil:
- Nacional - Offers properties for sale and contact information in Guarantã do Norte, MT.
- Green Acres - The leading international second home portal, offering properties for sale in Brazil, France, Portugal, Spain, Italy, and more.
- FazWaz - Brazil's leading real estate marketplace, offering a wide range of properties for buying, renting, and selling across various cities and regions in Brazil.
- On the Market - Specializes in luxury properties in Brazil, offering houses, penthouses, and apartments for sale in various locations.
- Expat - A platform offering housing services in Brazil, allowing users to buy, sell, rent, and find accommodation in cities like Rio de Janeiro, São Paulo, Salvador.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Brazil.
What you can get
As mentioned before, the average price per sqm in Brasília is $2,210. A 1-bedroom property of 60 square meters would cost approximately $133,000, and a 2-bedroom property of 85 square meters would be approximately $188,000.
However, prices will change based on both the property itself and its location.
You can expect prices to be steeper in the upscale parts of Brasília. In Asa Sul, a condominium could be priced at around $250,000, whereas a house in Lago Sul might cost $390,000.
However, some places cost less. You might find an apartment in Candangolândia for $70,000 or an apartment in Riacho Fundo for only $60,000.
Find a more detailed price list in our full pack for buying property in Brazil.
Risks and pitfalls
Here are the main pitfalls when buying a property in Brasília, Brazil:
- Complex land tenure: Brazil's unique land ownership system, including public land and indigenous territories, requires careful verification.
- Legal bureaucracy: Navigating intricate property registration and documentation processes can be challenging for foreigners.
- Urban growth issues: Brasília's rapid development may lead to zoning changes and impact property values.
- Environmental permits: Strict regulations for construction and renovation projects require compliance.
- Infrastructural challenges: Assess potential risks related to Brazil's infrastructure development, such as flooding or transportation issues.
- Property occupation: Squatter settlements on public or unused land can affect neighboring properties.
- Real estate scams: Be cautious of fraudulent sellers or properties with unclear ownership histories.
- Currency fluctuations: For foreign buyers, Brazil's volatile currency can impact the overall cost of the property transaction.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Brazil Property Pack
Living in Brasília
Living in Brasília is a unique experience, offering a vibrant culture, beautiful scenery, and plenty of opportunities for outdoor recreation.
Cost of living
The cost of living in Brasília is generally lower than in other major Brazilian cities. However, it is still more expensive than many other smaller cities in Brazil.
Here are some examples to better understand the cost of living in Brasília:
- Rent for a one-bedroom apartment in Asa Norte neighborhood: $800/month.
- Monthly public transportation pass with DFTrans: $60.
- "Feijoada" (Brazilian black bean stew) lunch for two: $35.
- "Guaraná" soda at a local bar: $2.50.
- Groceries at Feira dos Importados market: $100/week for a family of four.
- Basic utilities for an 85m² apartment with CEB: $80/month.
- Ticket to a cultural event at Centro Cultural Banco do Brasil: $10.
- "Caipirinha" cocktail at a restaurant in Pontão do Lago Sul: $5.
Neighbourhoods and spots
Since our intention is to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Brasília. For yields, prices and rents, check our property pack.
Plano Piloto is the central and most famous neighborhood, known for its iconic modernist architecture and urban design, including the famous "Monumental Axis."
Excellent infrastructure, well-planned layout, cultural landmarks, and government buildings.
High cost of living, traffic congestion, and limited green spaces.
Lago Sul is an affluent residential neighborhood situated by the Paranoá Lake, offering beautiful views and a tranquil environment.
Scenic beauty, upscale housing, and proximity to nature and water sports.
Lack of commercial areas, long commutes to the central region, and susceptibility to occasional floods.
Lago Norte is another upscale residential neighborhood located on the opposite side of Paranoá Lake, featuring modern houses and apartments.
Stunning lake views, well-maintained infrastructure, and a peaceful atmosphere.
Limited public transportation, fewer entertainment options, and higher living costs.
Cruzeiro is a well-established neighborhood with a mix of residential and commercial areas, known for its diverse community and convenient location.
Good public transport connectivity, various shops, and proximity to the city center.
Some areas prone to traffic congestion, limited green spaces, and older buildings.
Asa Norte is a residential neighborhood with many apartments and schools, known for its family-friendly environment and green areas.
Abundant parks, educational facilities, and diverse dining options.
Higher population density, limited parking, and occasional noise.
Asa Sul is a well-planned neighborhood with a mix of residential and commercial areas, known for its convenience, shopping centers, and historical significance.
Shopping opportunities, close proximity to cultural venues, and organized street layout.
Higher property prices, traffic congestion during rush hours, and limited open spaces.
Águas Claras is a rapidly growing neighborhood, popular among young professionals and families, known for its modern apartments and amenities.
Modern housing, excellent shopping centers, and good recreational facilities.
Some areas still under construction, traffic congestion during peak hours, and noise pollution.
Life in Brasília
Brasília is the economic center of Brazil, and its economy is largely driven by the service sector, with a strong focus on government services. The city is also a major hub for banking, finance, and IT services, as well as for tourism.
What expats usually like the most about Brasília is its large green parks and modern architecture. They also appreciate the city's low cost of living compared to other major cities in Brazil.
A good point for a property investor - Brasília has a mass rapid transit system known as the Brasília Metro.
Access to healthcare in Brasília is generally considered to be good, with a variety of public and private healthcare options available.
Don't lose money on your property in Brasília
100% of people who have lost money in Brazil have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Renting out in Brasília
If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.
Tenant Profiles in Brasília
According to the data reported by Wikipedia, the home ownership rate in Brazil is 73%, which is average.
It means that, if you decide to buy and rent out in Brasília, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target professionals and government employees in Brasília, as well as students attending universities in the city. The city's high cost of living also makes it attractive to wealthy retirees.
Here is a little summary table we've made for you.
|Property type and area
|Profiles of potential tenants
|What they are looking for
|Expected monthly rent in $
Apartment in Asa Sul
Professionals, government employees
Central location, amenities
$700 - $1,200
House in Lago Sul
Affluent families, expats
Luxurious living, spacious homes
$1,500 - $3,000
Studio in Asa Norte
Students, young professionals
University proximity, urban vibe
$500 - $900
Condo in Noroeste
Young couples, families
New developments, modern amenities
$800 - $1,500
3-Bedroom Apartment in Sudoeste
Quiet area, good schools
$1,000 - $1,800
High-rise Apartment in Plano Piloto
Government workers, urban dwellers
Central location, city views
$1,200 - $2,200
1-Bedroom Apartment in Guará
Singles, young professionals
Affordable living, convenient
$600 - $1,000
Nowadays, rental yields in Brasília are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.
In Brasília, properties in the city center tend to have the highest rental yields due to the high demand for centrally located housing. Additionally, properties located near universities and government offices are also attractive investments as they are in high demand from students and professionals.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Brasília are taxed at 15%, which is not much.
You could also decide to rent short-term to business travelers, tourists, and those visiting family in Brasília. Additionally, students studying abroad or interning in the area may be interested in short-term rental options.
If you decide to go with that option, look for properties in the Asa Sul and Asa Norte neighborhoods, which are known for their close proximity to the city's business district and for their popular restaurants and bars.
Currently, there are approximately 1,920 active Airbnb listings in Brasília, reflecting a highly dynamic and bustling short-term rental market. The average daily rate is at $39.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Brasília can make around $500 per month. Also, the average occupancy rate is estimated at 67%.
Is it worth buying real estate in Brasília then?
Buying a property in Brasília can be a smart move if you're in it for the long haul. The city's property market offers potential for value appreciation, with a property price-to-rent ratio that aligns with the global average. This means that over time, your investment may grow in value, and you can build equity while renting out the property.
Moreover, the city's stable economic outlook and forecasts of GDP growth suggest that property prices are likely to increase, making Brasília an attractive option for real estate investment.
However, if you're seeking quick profits and high rental yields, Brasília may not be your best bet. Rental yields in the city are typically below the global average, and it may take years to see significant returns.
Additionally, the complexities of Brazil's land ownership system, bureaucratic processes, and potential risks related to environmental and infrastructural issues can make property investment a challenging endeavor for foreigners.
So, while buying a property in Brasília can offer long-term rewards, it's crucial to be patient, conduct thorough research, and navigate the local real estate landscape cautiously to make a successful investment in this unique city.
Make sure you understand the real estate market in Brasília
Don't rush into buying the wrong property in Brazil. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.