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What do the latest numbers reveal about Brazil’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Brazil, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) The time to sell a home in Sorocaba has dropped by 25% in the past year
In 2023, Sorocaba's real estate market was bustling, with a notable increase in property sales.
During the second quarter of 2023, Sorocaba emerged as the second leading city in São Paulo state for property sales, with 1,300 units sold. This was a significant jump from the previous year, highlighting a strong demand for residential properties in the area.
The surrounding region, including Itu and Votorantim, also saw a boom, with a 52.1% increase in sales, totaling 1,535 units sold. This surge in activity likely contributed to properties being sold more quickly.
With such a dynamic market, the average time to sell a residential property in Sorocaba has decreased by 25% in the past year. This means homes are moving off the market faster than before, making it an exciting time for potential buyers.
For those considering purchasing a property in Sorocaba, this trend suggests a vibrant market with plenty of opportunities. The quick turnover indicates that buyers are eager, and properties are in demand.
Sources: G1 Globo, Quinto Andar, Loft
2) Demand for residential properties with home office spaces in Niterói has increased by 30%
In Niterói, there's been a 30% increase in demand for residential properties with home office spaces.
People are now looking for homes that offer a better quality of life, with dedicated spaces for remote work becoming a top priority. This change means that larger apartments and houses with home offices or coworking areas are more desirable.
The pandemic made everyone realize how crucial it is to have a comfortable and functional home environment. This awareness has significantly influenced the real estate market trends.
Buyers are particularly interested in properties that can accommodate their work-from-home needs, which has led to a shift in consumer preferences. The focus is now on finding spaces that blend living and working seamlessly.
As remote work becomes more common, the demand for homes with dedicated office spaces continues to rise. This trend is reshaping the housing market in Niterói.
Sources: O Globo
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.
3) Smart home-equipped properties in Brazil are expected to double by 2026, reaching about 20% of the market
The number of residential properties in Brazil equipped with smart home technology is expected to double by 2026, reaching around 20% of the market.
In 2023, Brazil's smart home market was already booming. Revenue jumped from US$ 1.26 billion in 2022 to an estimated US$ 2.41 billion by 2026. This impressive growth of 91.06% over four years shows how quickly Brazilians are embracing smart home technologies.
Globally, the smart home market is also on the rise, with a compound annual growth rate of 14.5% from 2021 to 2026. This global trend is influencing Brazil, where people are increasingly looking for energy-efficient and tech-savvy living solutions.
In Brazil, the demand for smart homes is driven by the desire for energy-efficient and technologically advanced living. People want homes that are not just comfortable but also smart and sustainable.
As more Brazilians seek these modern conveniences, the market is set to expand rapidly. By 2026, one in five homes could be equipped with smart technology, making everyday life more convenient and efficient.
Sources: TrendsCE, MarketsandMarkets
4) New residential developments in João Pessoa are expected to grow by 22% by 2025 due to rising demand
In João Pessoa, the supply of new residential developments is projected to increase by 22% by 2025, responding to rising demand.
This demand is fueled by the city's sustainable growth, which includes economic stability and improved infrastructure. People are drawn to João Pessoa for its high quality of life, making it an attractive place to settle down.
The rental market is thriving, thanks to the presence of universities and a growing labor market. This has led investors to focus on long-term rental properties, further driving the need for new developments.
With more people moving in, the city is seeing a surge in housing demand. This trend is encouraging developers to build more homes to meet the needs of new residents.
As João Pessoa continues to grow, the real estate market is adapting to accommodate the influx of people seeking both rental and ownership opportunities.
Sources: Execut
5) Residential property developments in Campo Grande's suburbs are increasing by 12% annually
The city of Campo Grande is experiencing a 12% annual increase in residential property developments in its suburban areas.
This surge is fueled by a booming real estate market, especially in suburbs like the Prosa region. In 2023, Campo Grande saw a 12.61% increase in residential property values, making it the third-highest among Brazilian capitals. This makes suburban areas particularly appealing for new developments.
The FipeZap index, which tracks property prices across Brazil, highlights this growth, showing a strong market performance in Campo Grande. This has caught the eye of both local and foreign investors, who view the city as a promising investment opportunity.
Investors are drawn by Campo Grande's economic growth and increasing population, which contribute to the rising demand for housing. The city's expanding infrastructure and amenities further enhance its appeal, making it a hotspot for real estate activity.
Suburban areas are becoming more attractive due to their affordable property prices and potential for appreciation. This trend is reshaping the city's landscape, with new residential projects popping up to meet the growing demand.
As Campo Grande continues to grow, its suburban regions are set to become even more desirable, offering a blend of modern living and investment potential. The city's real estate market is on an upward trajectory, promising exciting opportunities for prospective buyers.
Sources: Myside, Campo Grande News, Correio do Estado
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6) Rio de Janeiro’s residential vacancy rate is expected to fall to about 5% by 2024, showing a tightening market
In Rio de Janeiro, the residential property market is heating up, with the vacancy rate projected to drop to about 5% by 2024.
Over the past few years, the city has seen a boom in residential sales, with nearly 24,000 units launched and over 12,000 units sold in 2024 alone. This bustling activity reflects a total value of around R$ 15 billion, showcasing the strong demand for homes. The Orla region, known for its stunning beaches and vibrant lifestyle, has been a major player in this trend, attracting both local and international buyers.
In 2024, the market for mid-to-high-end properties saw a remarkable surge. The Value General of Sales (VGV) for these properties increased by 94% in the second trimester compared to the same period in 2023. This spike indicates a growing interest in upscale living, with buyers eager to invest in premium locations.
Rio's real estate market is not just about numbers; it's about lifestyle. The city's unique blend of culture, nature, and urban living makes it a desirable place to call home. As the market tightens, potential buyers are keen to secure their piece of this vibrant city.
With the vacancy rate dropping, competition among buyers is expected to intensify. This trend suggests that now might be the perfect time to invest in Rio's real estate, before prices climb even higher.
Sources: JLL, Diário do Rio, O Globo
7) Demand for affordable housing in Manaus is expected to grow by 20% by 2025 due to population growth and urbanization
In Manaus, the demand for affordable housing is expected to grow by 20% by 2025.
This surge is fueled by the city's rapid urbanization and industrialization, which have been transforming Manaus into a bustling hub. Over the past couple of years, 2023 and 2024 saw a significant influx of migrants from rural riverine communities. These individuals are drawn to the city, hoping for better opportunities, yet many find themselves without the necessary resources or government support to secure housing.
The migration wave has put a strain on the city's infrastructure, which is struggling to keep up with the growing population. This has led to a notable housing deficit, as the existing facilities are insufficient to meet the needs of the new residents. Consequently, the demand for affordable housing has risen sharply, driven by the necessity to provide decent living conditions for those who have recently moved to the city.
As Manaus continues to grow, the need for affordable housing becomes even more pressing. The city's expansion is not just about numbers; it's about ensuring that everyone has access to a place they can call home. The challenge lies in balancing this growth with sustainable development, ensuring that the infrastructure can support the increasing population.
For potential property buyers, this situation presents both challenges and opportunities. On one hand, the rising demand for affordable housing indicates a thriving market. On the other hand, it highlights the need for strategic investments that can address the housing deficit while promoting sustainable urban development.
Sources: Holcim Foundation
8) Residential property demand in Bauru is expected to rise by 25% due to educational institutions
The city of Bauru is seeing a 25% rise in residential property demand, thanks to its educational institutions.
In recent years, particularly in 2023 and 2024, Bauru has witnessed a surge in student housing demand. This trend is largely fueled by major educational hubs like the Universidade Estadual Paulista (Unesp), which draw in a significant number of students, thereby increasing the need for housing.
An insightful article by Sophia Spadão on the Kenlo blog points out that university residences are reshaping the real estate market. It notes that at the start of the academic year, the demand for student housing could spike by up to 40%. This increase highlights the necessity for compact, conveniently located apartments that provide students with both privacy and practicality.
Real estate companies play a pivotal role in this scenario, acting as a bridge between students and property owners. They ensure that student needs are met while also helping property owners maximize their returns. This balance of supply and demand is especially pronounced in cities like Bauru, where educational institutions are a major draw.
In Bauru, the presence of these institutions not only boosts the local economy but also drives the real estate market to adapt and grow. The influx of students creates a vibrant community, making the city an attractive option for property investors.
As the academic year approaches, the demand for student housing is expected to continue its upward trend, further solidifying Bauru's position as a key player in the real estate market. This ongoing demand underscores the importance of educational institutions in shaping the city's housing landscape.
Sources: Kenlo Blog
We have made this infographic to give you a quick and clear snapshot of the property market in Brazil. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) By 2026, 15% of Brazilian homes are expected to have home automation systems, reflecting tech advancements
By 2026, 15% of residential properties in Brazil are expected to feature home automation systems.
This shift is part of a broader trend, with the Brazilian smart home market experiencing a boom. Since 2023, the market has been expanding rapidly, and by 2026, it's projected to hit $2.41 billion in revenue, a significant 91.06% increase from 2022.
What's driving this growth? It's the widespread adoption of smart home technologies. By 2026, an estimated 9.9 million Brazilian homes with internet access will incorporate some form of smart devices, highlighting a major uptick in home automation usage.
These systems offer numerous benefits that appeal to homeowners. They provide convenience, enhanced security, and improved energy efficiency, making them attractive to those seeking modern living solutions.
The integration of these devices into smart home systems is a key factor in the rising number of homes with automation. Consumers are increasingly drawn to the idea of a connected home that simplifies daily life.
Sources: TrendsCE, Beco Castelo Blog
10) Around 30% of new residential projects in Rio de Janeiro are using sustainable building practices
In Rio de Janeiro, about 30% of new residential projects are embracing sustainable building practices.
This shift is part of the city's larger push towards sustainability, aligning with its status as the 5th leading country globally in green building. With over 1,500 sustainable buildings across Brazil, Rio is making significant strides in eco-friendly construction.
The city's climate initiative, "Rio. Sustainable," aims to cut CO2 emissions through various measures. These include installing energy-efficient LED lights and boosting public awareness, all contributing to a greener urban landscape.
In the port area, redevelopment projects are transforming the space by refurbishing historical buildings and adding green spaces. This not only preserves the city's heritage but also integrates sustainability into new developments.
Such efforts are evident in the increasing number of residential projects that are adopting green building practices. This trend reflects a growing commitment to creating a more sustainable living environment.
Sources: Rio Times Online, Columbia Engineering
11) By 2025, cash purchases for homes in Brazil are expected to drop to 30% as more buyers choose financing options
The trend in Brazil shows that only 30% of residential properties will be bought with cash by 2025.
This shift is happening because financing options are becoming more accessible to buyers. The Brazilian real estate market is evolving, with economic factors and consumer behavior making loans more appealing. Lower interest rates and flexible loan terms are key reasons why more people are choosing to finance their property purchases.
New financing options like Crédito com Garantia de Imóvel (CGI) and Letra Imobiliária Garantida (LIG) are also gaining popularity. These options provide better conditions for borrowers, making financed transactions more attractive than paying in cash.
Sources: Tendências de financiamento imobiliário no Brasil em 2024, Tendências do Financiamento Imobiliário em 2024: O Que Esperar
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12) About 18% of homes in Porto Alegre are now sold through digital platforms
In Porto Alegre, 18% of residential properties are now sold through digital platforms.
This shift is driven by innovative tools like the Imobindex platform, which the municipal government launched to offer clear and detailed property price information. By using data from the Imposto de Transmissão de Bens Imóveis (ITBI), Imobindex provides transaction values based on postal codes, bridging the information gap between buyers and sellers.
Such transparency is crucial for boosting investor confidence, making the market more appealing and accessible. The digitalization trend doesn't stop there; it also includes the tokenization of property rights, which is transforming how transactions are conducted.
Tokenization allows for faster and more secure transactions, akin to Brazil's PIX system, which has revolutionized financial exchanges. This technology is a game-changer, encouraging more people to use digital platforms for property sales.
As a result, the real estate market in Porto Alegre is becoming more efficient and user-friendly. Buyers and sellers can now engage in transactions with greater ease and security, thanks to these digital advancements.
Sources: Imobindex Platform
13) By 2025, 25% of Brazilian homes will be in mixed-use developments combining living, working, and leisure spaces
Brazil is embracing mixed-use developments, where living, working, and leisure spaces coexist.
These developments are reshaping urban life by reducing long commutes and promoting healthier lifestyles through walking and cycling. In bustling cities, where space is tight, the demand for such convenience is skyrocketing.
By 2025, expect to see 25% of residential properties in Brazil as part of these innovative spaces. This mirrors a global shift towards cities that are not just denser but also more sustainable and people-friendly.
Mixed-use areas are not just about convenience; they foster community interaction, making neighborhoods more vibrant and connected. This is crucial in urban settings where creating a sense of community can be challenging.
As cities grow, the focus is on integrated urban planning that balances living, work, and leisure. This approach is essential for sustainable development and improving quality of life.
Brazil's move towards these developments is part of a broader trend, aiming to create human-friendly environments that cater to modern needs. The future of urban living is here, blending functionality with community spirit.
Sources: Verde Azul Urbanismo, EPH Incorporadora
14) By 2024, 25% of Brazilian homes are expected to have green spaces, improving quality of life
In 2023, Brazil saw a growing trend of residential properties incorporating green spaces like gardens and parks.
People increasingly understood the importance of these areas for enhancing both physical and mental well-being. Green spaces became a solution to urban environmental challenges, making them highly sought after.
Real estate developers quickly caught on, integrating green spaces into new projects, especially in fast-growing cities. This not only improved residents' quality of life but also boosted property values.
By 2024, the proportion of residential properties in Brazil with green spaces, such as gardens and parks, is expected to reach 25%, enhancing quality of life.
Developers are responding to this demand by creating more sustainable living environments, which are increasingly popular among buyers.
As a result, properties near green areas are seeing a significant increase in value, making them a smart investment choice.
Sources: SOMOS Grupo RV, Olhagoias.com.br
We made this infographic to show you how property prices in Brazil compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) By 2025, renovation costs for residential properties in Brazil are expected to rise by 7% due to higher material and labor costs
By 2025, the average cost of renovating a residential property in Brazil is anticipated to increase by 7%, reflecting higher material and labor costs.
In recent years, the cost of renovating homes in Brazil has been on the rise. This trend is largely due to the increasing prices of materials like ceramics and wood, which have been fluctuating significantly. These fluctuations are often driven by market conditions and various economic factors.
Labor costs have also seen a noticeable uptick. Inflation and a growing demand for skilled workers in the construction industry have pushed labor expenses higher. This demand is partly because more people are looking to renovate, leading to a competitive market for skilled labor.
Another factor contributing to the rising costs is the exchange rate. The US dollar's strength against the Brazilian real has made foreign materials and labor more expensive, adding to the overall cost of renovations.
These economic trends have made it more costly to undertake renovation projects. As a result, homeowners are finding that their budgets need to stretch further to cover the increased expenses associated with upgrading their properties.
For those considering a renovation, it's important to plan carefully and account for these rising costs. The market conditions suggest that these trends will continue, making it crucial to budget wisely and perhaps even consider alternative materials or methods to keep costs manageable.
Sources: Meu Tudo, Inteligência Financeira, Cronoshare
16) Residential property insurance costs in Brazil are expected to rise by 5% by 2026 due to higher property values and risk factors
The average cost of residential property insurance in Brazil is expected to increase by 5% by 2026, reflecting higher property values and risk factors.
From 2017 to 2021, there was a notable rise in insured homes, with a 25% increase in coverage. This shows a growing awareness and demand for property insurance, which can drive up costs. The COVID-19 pandemic also played a role, as it heightened the focus on home safety and security, further boosting the market.
Despite this growth, 83% of residences in Brazil still lack insurance, indicating a huge potential for market expansion. As more people seek insurance, costs are likely to rise, especially in regions like the Northeast and North, where insurance penetration is lower and risk factors might be higher.
Risk management in real estate has become more crucial, emphasizing the need for better assessment and management practices. This focus on risk could lead to higher insurance premiums as companies aim to offer more comprehensive coverage.
All these elements contribute to the expected increase in insurance costs by 2026. The market's potential for growth is significant, but it comes with the likelihood of rising costs as demand increases.
Sources: Agência Brasil, Delphos, Wise
17) By 2026, 30% of new residential projects in Brazil will use sustainable building practices, showing a trend toward eco-friendly construction
Brazil is embracing sustainable construction like never before.
Organizations such as the Green Building Council Brasil (GBC Brasil) are at the forefront, collaborating with over 600 member companies to revolutionize the construction industry. Their efforts are not just about building structures but about creating a sustainable future.
Through GBC Brasil's certification, numerous projects have been recognized for their efficiency and comfort, setting a benchmark for eco-friendly construction. This certification is more than a badge; it's a movement towards sustainable development that is gaining momentum across the country.
Brazil's commitment to sustainability has not gone unnoticed on the world stage. Several of its projects have been ranked among the 100 most sustainable buildings globally by the G20, showcasing the country's dedication to eco-friendly practices.
By 2026, it's expected that around 30% of new residential developments in Brazil will incorporate sustainable building practices. This trend reflects a growing awareness and demand for eco-friendly construction methods.
As Brazil continues to innovate in sustainable construction, it sets an example for other nations, proving that eco-friendly practices are not just possible but essential for the future.
Sources: GBC Brasil, Prevision Blog
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18) Demand for residential properties in São Luís's urban centers is expected to grow by 20% by 2024 due to economic opportunities
In 2023, São Luís experienced a notable surge in demand for residential properties, driven by economic opportunities.
The city's charm lies in its unique blend of historical and cultural attractions, which, coupled with economic growth, has made it a magnet for both locals and foreign investors. This vibrant atmosphere is drawing more people to consider making São Luís their home.
State investments have been pivotal, offering easier access to credit and lower interest rates. These financial incentives have opened doors for many to enter the real estate market, making homeownership more attainable than ever before.
São Luís's strategic location and natural beauty are also key factors. The city is not just a pretty face; it's a place where the growing middle class is eager to invest in second homes, a trend seen across Brazil. This has further fueled the demand for properties.
By 2024, these elements are expected to drive a 20% increase in demand for residential properties in urban centers. The allure of São Luís is undeniable, and its real estate market is booming as a result.
Sources: InterEspaço: Revista de Geografia e Interdisciplinaridade, G1, Aparthotel.com
19) São Paulo’s residential property prices are expected to rise by about 15% by 2025 due to high demand and limited supply
The average price of residential properties in São Paulo is expected to increase by around 15% by 2025 due to high demand and limited supply.
São Paulo is a bustling economic hub, and its strong economy has consistently drawn people in, boosting the demand for housing. In recent years, especially in 2023 and 2024, the city's population has grown, and there's a cultural trend towards owning homes. This has intensified the need for more housing.
Interestingly, the average number of people living in each household is shrinking. This shift means that more housing units are needed to accommodate the same population, further driving up demand for new homes.
On the supply side, efforts to tackle the housing shortage, like government programs, haven't made a big dent in the market trends. Construction costs are rising, but not as fast as inflation, which hasn't been enough to keep up with the growing demand.
Consequently, the limited supply of new housing is putting upward pressure on property prices. Even with attempts to boost housing availability, the market remains tight, and prices continue to climb.
Sources: Helbor Real Estate Market, Estado de São Paulo, Quinto Andar
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.