Authored by the expert who managed and guided the team behind the Brazil Property Pack
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What will happen in Florianópolis’s real estate market? Will prices go up or down? Is this island city still a hotspot for foreign investors? How is Brazil’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, developers, and clients who buy properties in Florianópolis, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Rental yields in popular tourist spots will stay steady because visitor numbers are consistent
In 2023 and 2024, Florianópolis saw a 10.6% rise in visitor arrivals in April 2024 compared to the previous year.
This steady stream of tourists is a big deal for keeping rental yields stable in popular areas. During peak times like summer and carnival, short-term rentals were nearly fully booked, with average daily rates hitting around $116.
Florianópolis's beautiful beaches and lively culture keep vacation rentals in high demand, ensuring that average daily rates stay stable or even go up. The city is expanding its hospitality services and amenities to cater to more tourists.
With the consistent influx of visitors, rental yields in high-demand tourist areas remain stable. This trend is backed by the city's efforts to enhance its appeal to tourists.
Florianópolis is becoming a hotspot for tourists, and this is reflected in the high occupancy rates during peak seasons. The city's vibrant culture and natural beauty are major draws.
Investors can feel confident that the consistent visitor numbers will keep rental yields steady. The city's ongoing development in hospitality services supports this stability.
Sources: Tourism Summary 2024 April, High Net Worth Immigration
2) Mid-range property prices will rise steadily as local buyer demand stays strong
Mid-range property prices in Florianópolis are on the rise, thanks to strong local demand.
Florianópolis is bustling with newcomers, seeing a 2.1% annual population growth. This influx means more people are on the hunt for homes, especially in the mid-range market. As the city grows, so does the need for housing, pushing prices up.
The local economy is thriving, with a strong GDP and low unemployment. This economic health gives people the confidence and means to buy homes, adding more fuel to the demand. With stable jobs, locals are eager to invest in property, keeping the market lively.
Land is a hot commodity in Florianópolis, with limited new development opportunities. The scarcity of buildable land means fewer new homes are popping up, which naturally drives up the prices of existing properties. When demand outstrips supply, prices climb.
Local buyers are the backbone of this market, consistently driving demand. Their interest in mid-range properties ensures that prices continue to rise steadily. This trend is a testament to the city's appeal and economic stability.
For those considering a purchase, understanding these dynamics is key. The combination of population growth, economic strength, and limited land makes Florianópolis a unique market. It's a place where mid-range properties are not just homes but smart investments.
Sources: Mordor Intelligence, ICLEI Publications
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.
3) Demand for rentals near universities will rise as the student population grows
The student population in Florianópolis is booming, and it's set to shake up the rental market near universities.
With more students enrolling at places like the Federal University of Santa Catarina and Santa Catarina State University, the demand for rental properties is on the rise. These universities are known for their competitive acceptance rates, which means more students are flocking to the area, looking for places to live.
Across Brazil, the number of undergraduate students has skyrocketed, reaching over 9.9 million in 2023. This surge is particularly felt in cities like Florianópolis, where students are increasingly opting for off-campus housing. This trend makes properties near universities a hot commodity for investors.
Adding to the mix, there's a shortage of on-campus housing, which means students are turning to nearby rentals to find a place to stay. As the student numbers continue to climb, this demand is only going to grow stronger, making it a prime opportunity for those looking to invest in real estate.
Real estate market analyses are buzzing about this trend, pointing out that the increasing number of undergraduates is a key driver for the rental market. Properties close to universities are becoming a smart investment choice, thanks to this ever-growing demand.
For anyone considering buying property in Florianópolis, the student rental market is a promising avenue to explore. With the right investment, you could tap into a steady stream of renters eager to live near their campus.
Sources: Federal University of Santa Catarina, Santa Catarina State University
4) Florianópolis property prices will grow moderately as the city balances development with sustainability
Florianópolis is a real estate hotspot thanks to its stunning beaches and vibrant culture.
The city attracts both local and international investors, drawn by its commitment to sustainable development and eco-friendly living. This focus on sustainability aligns perfectly with the preferences of today's eco-conscious buyers.
Florianópolis has invested heavily in green infrastructure, with initiatives like the Sustainable Florianópolis Action Plan and the Cultiva Floripa program. These efforts aim to make the city more self-sufficient and environmentally friendly, enhancing the quality of life for residents and making it more appealing to potential buyers.
The rise of remote work has also fueled the housing demand. Since 2018, there's been a 152% increase in international remote workers choosing Florianópolis as their base, which has further driven the real estate market.
Property prices in desirable areas have seen steady increases, indicating a moderate growth in property values as the city balances development with sustainability.
Overall, Florianópolis offers a unique blend of natural beauty, cultural richness, and a commitment to sustainable living, making it an attractive option for property buyers.
Sources: ICLEI Publications, Luxury Home Floripa, Properstar
5) Property values will rise in previously remote areas due to infrastructure improvements
Infrastructure improvements can significantly boost property values in areas that were once considered remote.
In 2023, the government kicked off a major highway modernization program in Santa Catarina, featuring the "Contorno Viário de Florianópolis" project. This ambitious project involves building 50 kilometers of road, complete with tunnels and bridges, at a hefty cost of R$3.7 billion (US$725 million). The goal is to reroute traffic and ease congestion, making the area more accessible and attractive to potential residents and investors.
With the completion of new transportation links like the "Contorno Viário de Florianópolis," the region is set to become a hotspot. The expansion of the Hercílio Luz International Airport is another game-changer, enhancing connectivity by accommodating more visitors and business travelers. This makes the area not just a place to live, but a thriving hub for business and leisure.
Rising property prices in areas with recent infrastructure developments are a common trend. The highway bypass and bridge upgrades in Florianópolis are expected to make previously remote areas more appealing for residential and commercial investments. Similar projects in other cities, like Barra da Tijuca in Rio de Janeiro, have led to significant increases in property values, showing a clear pattern of growth following infrastructure improvements.
For those considering investing in property, these developments are a golden opportunity. The improved infrastructure not only boosts property values but also enhances the quality of life, making these areas more desirable. Investors are taking note, seeing the potential for both immediate and long-term gains.
As these projects progress, the landscape of Santa Catarina is changing. What was once considered remote is now within reach, thanks to these strategic infrastructure upgrades. The transformation is already underway, and those who get in early stand to benefit the most.
Sources: The Rio Times, High Net Worth Immigration, BNamericas
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6) Demand for wellness-focused communities will grow as health-conscious living gains popularity
Interest in wellness-focused communities is growing rapidly, and it's no surprise given recent trends.
Back in 2023, the global wellness real estate market was thriving, expanding from $225 billion in 2019 to $438 billion. This boom is expected to continue, with predictions that it will reach $913 billion by 2028. In Brazil, this trend is evident with numerous wellness residential projects popping up, reflecting a clear demand for such communities.
Another driving force behind this interest is the surge in health and wellness product sales. While specific data for Florianópolis might be missing, the global picture is clear. The health and wellness market is projected to grow by $1.93 trillion from 2024 to 2028, fueled by rising consumer awareness and cultural shifts. This shows a growing interest in health-conscious living, which naturally influences where people choose to reside.
Consumer surveys have consistently shown a rising interest in health-conscious living. For example, 82% of US consumers considered wellness a top priority in their daily lives, a sentiment shared by those in the UK and China. This trend spans across age groups, with Gen Z and millennials leading the charge in buying more wellness products and services.
This shift in consumer priorities suggests a strong interest in communities that support a healthy lifestyle. In certain areas, wellness-focused communities offer amenities like yoga studios, organic food markets, and nature trails, catering to this demand. These features not only enhance physical health but also promote mental well-being, making them attractive to potential buyers.
As health-conscious living becomes more popular, the appeal of wellness-focused communities is likely to rise. People are increasingly looking for places that offer a holistic approach to living, where they can integrate wellness into their everyday lives. This trend is particularly notable in urban areas, where the hustle and bustle often lead to a desire for a more balanced lifestyle.
Sources: Global Wellness Institute, PR Newswire, McKinsey
7) Demand will rise in northern Florianópolis as infrastructure and connectivity improve
The northern neighborhoods of Florianópolis are set to become hot property spots, thanks to major upgrades in infrastructure and connectivity.
One of the key developments is the "Contorno Viário de Florianópolis," Brazil's largest highway project, which has transformed the area. This project features four double tunnels and over 30 bridges, designed to reroute traffic and ease congestion, making travel around the city much smoother.
With these changes, property prices in the northern neighborhoods are climbing. The city's economy and tourism are already strong, and the new infrastructure is expected to push property values even higher. This is great news for the real estate market, as more people look to buy homes and set up businesses here.
Improved connectivity is a game-changer, making these neighborhoods more appealing to both residents and businesses. With shorter travel times to key city areas, living in the north is now more convenient, offering faster commutes and better access to city amenities.
This newfound accessibility is drawing more people to the area, increasing demand for both residential and commercial properties. As more folks move in, the northern neighborhoods are likely to see a boom in real estate and commercial development.
So, if you're thinking about buying property in Florianópolis, the northern neighborhoods are definitely worth a look. With all these improvements, it's no wonder they're becoming a top choice for buyers.
Sources: The Rio Times, Properstar
8) Beachfront properties in Jurerê Internacional will stay expensive because of their exclusivity
Beachfront properties in Jurerê Internacional have consistently appreciated in value due to their exclusive nature and appeal to both local and international buyers.
In 2023, the luxury real estate market in Florianópolis, especially in Jurerê Internacional, experienced a notable surge, with a 63.3% rise in luxury launches and a 41.9% increase in sales values. This trend highlights the area's growing allure among affluent buyers.
The scarcity of beachfront land in Jurerê Internacional is a major reason for the high demand and premium prices. This limited availability ensures the area remains exclusive, attracting a high-income population eager to invest in luxury real estate.
Buyers are drawn to the exclusivity and prestige of owning property in this sought-after location, willing to pay top dollar for the privilege. The area's reputation as a luxury destination is frequently highlighted in media reports, further boosting its appeal.
Recent investments in infrastructure and amenities, like 24-hour private security and sophisticated commerce, have enhanced Jurerê Internacional's attractiveness to both residents and investors. These improvements continue to drive demand for its properties.
Jurerê Internacional's allure is not just about the properties themselves but also the lifestyle they offer. The combination of exclusivity, luxury, and a vibrant community makes it a prime choice for those seeking a prestigious address.
Sources: Luxury Home Floripa, High Net Worth Immigration
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.
9) Property values in the island's southern region will grow slowly due to limited development opportunities
The southern part of Florianópolis is seeing slower property value growth because there’s not much room left for new buildings.
In this area, most of the land that can be built on is already taken, as noted in the ICLEI report. This means there’s not much space left for new projects, which naturally slows down the rise in property prices.
Adding to the challenge, strict environmental rules make construction tough, especially in protected zones that are common in the south. These regulations are designed to preserve the natural beauty and biodiversity, but they also mean fewer new homes or businesses can be built.
When you look at the numbers, property values in the south have historically risen more slowly than in other parts of the island. This trend is partly because the north and central areas are closer to shops and offices, making them more appealing to buyers.
Real estate experts often point out that the northern and central regions are more popular due to their convenience and access to amenities. This popularity drives up demand and, consequently, property values in those areas.
So, if you’re considering buying property in Florianópolis, the south offers a different pace and lifestyle, but don’t expect rapid increases in property value like you might see elsewhere on the island.
Sources: ICLEI Report, City Population
10) Rental yields in remote areas will fall due to limited transportation options
Properties in less accessible areas of Florianópolis are struggling due to limited transportation options.
In 2023 and 2024, the SUDERF proposal aimed to improve public transportation but left some regions underserved. This has made it tough for these areas to attract tenants, as people prefer places with better transit options for getting around the city.
Historically, smaller coastal towns in Brazil, like those in Florianópolis, have seen lower rental yields due to seasonal demand. Tenants often choose properties with good transportation links, which are more cost-effective and convenient.
Looking at São Paulo, we see that better transportation networks can increase property values and rental yields. However, neighborhoods with poor transit options tend to have lower yields, a trend also visible in Florianópolis.
Real estate experts consistently note that transportation accessibility boosts rental demand. In Florianópolis, areas with good transit links enjoy higher rental yields, making them more attractive to tenants.
Experts predict that rental growth will stagnate in less accessible areas, highlighting the crucial role of transportation in attracting tenants.
Sources: EIB, STR Specialist
11) Demand for properties in Trindade will rise due to its closeness to the Federal University of Santa Catarina
The Trindade area is becoming a hot spot for property buyers due to its close proximity to the Federal University of Santa Catarina.
With over 36,000 students enrolled at the university, there's a natural push for more housing nearby. This isn't just a local trend; globally, students are showing a strong preference for living close to their schools. In Trindade, this has led to a flurry of new residential projects aimed at meeting this demand.
Students love the convenience of being near their university, and Trindade offers just that. The area is not only close to the campus but also boasts enhanced public transportation links and improved infrastructure, making it even more appealing.
Developers are keenly aware of this demand and are actively working on new housing projects. This is a smart move, as the demand for student housing often outpaces the rate of enrollment growth, showing just how much students value living near their educational institutions.
Local government initiatives are also playing a role in making Trindade more attractive. These efforts are focused on improving infrastructure, which in turn makes the area more appealing to students looking for convenience and accessibility.
All these factors combined make Trindade a prime location for property investment, especially for those looking to tap into the growing student housing market. The area's proximity to the university and its ongoing development projects are key drivers of this trend.
Sources: Brookfield Oaktree, EduRank, Times Higher Education
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12) Demand for homes with sustainable features will grow as energy efficiency becomes more desirable
The desire for energy-efficient homes is reshaping the real estate market in Florianópolis.
In recent years, there's been a noticeable uptick in new constructions featuring sustainable elements, particularly in Florianópolis, a city known for its commitment to green living. This surge is largely fueled by young professionals and tech workers who crave homes with smart technology and energy-saving systems.
Buyers in Florianópolis are showing a strong preference for energy-efficient homes, aligning with the city’s green goals. This has led to price increases in sustainable properties. Government incentives are also playing a role, making eco-certified buildings more attractive to potential buyers.
With media spotlighting sustainability, consumer awareness is on the rise, further driving demand for eco-friendly homes. Local builders are catching on, increasingly focusing on eco-friendly construction. The availability of green building materials in the area is making it easier for them to adopt these practices.
Florianópolis is becoming a hub for sustainable living, with builders and buyers alike embracing the trend. The city’s commitment to green initiatives is evident in the growing number of eco-certified buildings popping up.
As more people prioritize energy efficiency, the demand for homes with sustainable features is expected to continue its upward trajectory. This shift is not just a trend but a reflection of a broader movement towards environmentally conscious living.
Sources: ENERGY STAR, Geoplast
13) New residential developments will routinely include smart home technology
Smart home technology is becoming a must-have in new homes.
In Brazil, the number of connected devices is expected to hit 27.1 billion by 2025, driven by the widespread use of smartphones and fast internet. This makes it easier for people to embrace smart home tech, which is becoming a standard feature in new residential developments. Imagine living in a place where your lights, security, and even your coffee maker are all connected and easily controlled.
Globally, there were already over 400 million smart homes in 2024, with popular gadgets like video entertainment systems and smart appliances leading the way. People love the convenience and efficiency these devices bring, and it's clear that homes with advanced tech features are in high demand. If you're considering buying a property, think about how these features could enhance your daily life.
The Brazilian government is also pushing for smart home adoption through initiatives like the National IoT Strategy, which focuses on energy management and home security. This makes smart homes even more attractive to buyers, especially in tech-savvy areas like Florianópolis. Plus, the cost of IoT devices is dropping, making them accessible to more people.
Real estate reports often highlight that smart homes can boost property value and draw in potential buyers. Developers are teaming up with tech companies to ensure the latest smart features are included in new builds. This collaboration means that when you buy a new home, you're likely getting cutting-edge technology that enhances security and energy efficiency.
Media and social media influencers are also spreading the word about the perks of smart homes. Enhanced security and energy efficiency are just a couple of the benefits that are catching people's attention. As more people learn about these advantages, the demand for smart homes is only going to grow.
Sources: 6Wresearch, Raleigh Realty, Trade.gov, Strategic Market Research
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.