Buying a property in Florianópolis: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

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

Wondering about buying a nice property in Florianópolis? You're not alone!

Many people are captivated by Florianópolis' island charm and dream of owning a beachfront villa or a modern apartment with ocean views.

Would it be a profitable investment, though? Are property prices increasing in Florianópolis? What is the price per sqm? Should you consider buying in the city center or Jurere? Is there any hidden tax? Can I get a very good rental yield? Where?

We have all the answers you need.

At TheLatinvestor, we know this market like the back of our hand. As a matter of fact, we've organized all our findings in a pack. Get it now.

In the lines below, we'll provide you with helpful information.

How's the property market in Florianópolis?

Is the property market getting better or worse? People have different views. We like to be unique and analyze the latest data and stats to make accurate conclusions.

Types of properties

In Florianópolis, you can find various types of properties for sale.

These include apartments, houses, villas, and land parcels. Apartments often range from cozy studios to spacious multi-bedroom units in modern complexes or traditional buildings. Houses and villas come in diverse styles, offering options like single-family homes with gardens, beachfront properties, or hillside retreats.

If you're looking to build your own dream space, there are also land parcels available for sale, allowing you to create a custom home.

Whether you're interested in urban living, coastal relaxation, or designing your own abode, Florianópolis offers a range of property choices to explore.

Buy or rent?

(If you're buying for yourself and not to rent out)

If Florianópolis has captured your heart as your city of choice, you might be considering whether it's better to buy a property or opt for renting in this Brazilian island paradise.

Usually, buying is better than renting in Florianópolis due to its strong real estate market and vibrant economy.

On the other hand, if you value flexibility, renting might be the better choice.

Property prices in Florianópolis

On average, according to the last data from FipeZAP, buying a property in Florianópolis will cost you around $3,500 per square meter.

Naturally, property prices are quite spread out. The value of a square meter for a beachfront property in Florianópolis might differ from an apartment in the city center. You'll get a more detailed in our pack for buying property in Florianópolis and in Brazil.

To give you some context, it means that, instead of buying an apartment in Manhattan, you can get 4 properties in Florianópolis.

Also, housing prices in Florianópolis are 17% cheaper than in São Paulo.

The most expensive neighbourhoods in Florianópolis are probably Ingleses, Jurerê, and Canasvieiras, while the cheapest are Saco dos Limões, Cacupé, and Rio Tavares.

Trends

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.

Don't overlook this while weighing the pros and cons of buying a property in Florianópolis.

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 Florianópolis 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 Florianópolis

Buying real estate in Florianópolis can be difficult due to the lack of reliable and up-to-date information available for potential buyers. That's why we have created the pack to buy property in Florianópolis and in Brazil.

Buying process

Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.

Here, we're presenting you with a more straightforward version.

This is the step-by-step process to purchase a property in Florianópolis:

1. Research the market and set a budget for property in Florianópolis, Brazil.
2. Engage a licensed real estate agent familiar with Florianópolis properties and regulations.
3. Choose a suitable property and negotiate the price with the seller or agent.
4. Verify the property's legal status, ownership history, and obtain necessary documents like the Matrícula (property registration) from the Registro de Imóveis (Real Estate Registry).
5. Hire a Brazilian lawyer specialized in real estate for due diligence and to draft or review the Contrato de Promessa de Compra e Venda (Promise of Purchase and Sale Agreement).
6. Obtain a CPF (Cadastro de Pessoas Físicas) from the Receita Federal (Brazilian IRS) for tax identification purposes.
7. Open a Brazilian bank account to facilitate the transaction and transfer funds.
8. Sign the promissory contract (Contrato de Promessa de Compra e Venda) after thorough review and understanding.
9. Pay the required taxes and fees, such as ITBI (Imposto sobre a Transmissão de Bens Imóveis).
10. Register the property at the local Cartório de Registro de Imóveis (Real Estate Registry Office) to formalize ownership transfer.
11. Obtain the Registro de Imóveis (Property Registration) in your name as proof of ownership.
12. Complete the purchase, receive the keys, and officially become the property owner in Florianópolis.

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 Florianópolis

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Where to find a property

Here is a list of websites where you can find properties in Florianópolis, 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 Florianópolis is $3,500. If you're considering a one-bedroom property covering 60 square meters, it would be around $210,000, while a two-bedroom with 85 square meters would be approximately $298,000.

Obviously, property prices will change based on both the property itself and its location.

Prices tend to be higher in the top areas of Florianópolis. A residence in Jurerê Internacional might cost you around $850,000, and a residence in Lagoa da Conceição could be priced at $790,000.

But there are less expensive options in certain locations. You have the possibility of finding a condominium in Ingleses for $120,000 or a condominium in Canasvieiras that's priced at $90,000.

We give a more detailed breakdown in our full pack for buying property in Brazil.

Common pitfalls

Here are the main pitfalls specific to buying a property in Florianópolis, Brazil:

• Complex land tenure: Verifying land rights and avoiding issues with indigenous or protected territories is crucial.
• Coastal zone restrictions: Coastal properties may have strict environmental regulations, limiting development and usage.
• Currency controls: International buyers may face restrictions when transferring funds in and out of Brazil.
• High property taxes: Be prepared for relatively high property tax rates in Brazil.
• Bureaucratic processes: Navigating complex paperwork and legal procedures can be time-consuming and challenging.
• Infrastructure concerns: Some areas may lack adequate infrastructure and public services.
• Unforeseen liens and debts: Ensuring the property is free of encumbrances and debts is essential.
• Unregistered constructions: Confirming that all constructions on the property are properly registered can prevent legal complications.

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 Florianópolis

Living in Florianópolis is a great experience, offering a vibrant culture, natural beauty, and a relaxed lifestyle.

Cost of living

The cost of living in Florianópolis is generally considered to be quite high, but it can vary depending on the area. Generally, the cost of living is comparable to other cities in Brazil.

Here are some examples to better understand the cost of living in Florianópolis:

• Rent for a one-bedroom apartment in Jurere Internacional neighborhood: $1,200/month.
• Monthly public transportation pass with Consórcio Fênix: $40.
• "Moqueca de Camarão" lunch for two at a seafood restaurant: $45.
• "Caipirinha de Maracujá" cocktail at a beach bar: $5.
• Groceries at Mercado Público Central: $120/week for a family of four.
• Basic utilities for an 85m² apartment with Celesc: $70/month.
• Ticket to a cultural event at Teatro Ademir Rosa (CIC): $15.
• "Pastel de Siri" at a local food stand: $4 each.

Neighbourhoods

We like to make information easy to understand. So, we made a table that shows the different areas in Florianópolis. For yields, prices and rents, check our property pack.

Life in Florianópolis

The economy of Florianópolis is largely driven by the tourism industry, with the city being a popular destination for both domestic and international travelers. Additionally, Florianópolis is home to many technology and software companies, as well as a flourishing agricultural sector.

What expats usually like the most in Florianópolis is the stunning beaches, such as Praia dos Ingleses, and the vibrant nightlife with its many bars and restaurants.

A good point for a property investor - Florianópolis has a bus rapid transit system known as "Integração," which connects the mainland to the island.

Florianópolis has generally good access to healthcare, with a wide range of public and private healthcare options available.

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Renting out in Florianópolis

For those aiming to buy property solely for renting out and earning income.

Long-term

Tenant Profiles in Florianópolis

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 Florianópolis, 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 young professionals and students, as well as families looking for a more relaxed lifestyle close to the beach. Florianópolis also has a large expat community, so you could also market to them.

Here is a little summary table we've made for you.

Rental yields

Nowadays, the rental yields you get in Florianópolis are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.

Properties located in the downtown area and near universities tend to have the best rental yields in Florianópolis, as they are typically in high demand from students and young professionals. Additionally, properties located near the beaches and other tourist attractions tend to have higher rental yields due to the increased demand from visitors.

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 Florianópolis are taxed at 15%, which is not much.

Short-term

You could also decide to rent short-term to tourists visiting Florianópolis for its beaches and other attractions, or to business travelers staying in the city for a short period of time.

If you decide to go with that option, look for properties in Lagoa da Conceição and Centro, which are two of the most popular tourist areas in Florianópolis.

You will have some competition though - there are around 14,000 Airbnb listings in Florianópolis. The average daily rate stands around $71.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Florianópolis can make around $600 per month. Also, the average occupancy rate is estimated at 42%.

Is it worth buying real estate in Florianópolis then?

Certainly, when it comes to buying a property in Florianópolis, it's a smart move if you're in it for the long haul. Florianópolis is a city on the rise, with a stable economic outlook and potential for property appreciation. If you're thinking about long-term investment and believe in the city's future, it's worth considering.

The diverse property options, from beachfront villas to urban apartments, provide flexibility to match your needs. Plus, if you plan to live there, you'll enjoy a high quality of life, with beautiful beaches and a vibrant culture. And if rental income is your goal, Florianópolis offers a robust market with various tenant profiles, promising good returns.

On the flip side, if you don't have an immediate need for property or value flexibility, renting might be a better choice. Buying property in Brazil involves complex paperwork and bureaucracy, which can be a hassle, particularly for foreigners. Additionally, there are currency exchange risks to consider, and high property taxes can be a financial burden.

So, if you're not ready to commit to a long-term investment or navigate these intricacies, it might be best to hold off for now. Ultimately, the decision to buy in Florianópolis hinges on your goals, risk tolerance, and readiness to embrace the city's potential while dealing with the challenges that come with it.

Make sure you understand the real estate market in Florianópolis

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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.