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What is happening in Florianópolis’s real estate market? Are prices going up or down? Is this island city still a hotspot for foreign investors? How are local government policies impacting real estate and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Lagoa da Conceição to Jurerê Internacional and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Florianópolis real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
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) Florianópolis will see a slight drop in property prices short-term due to economic uncertainties
The real estate market in Florianópolis is facing a slight dip in prices due to economic uncertainties.
Brazil's GDP growth, which has been steady at around 3% for the past few years, is expected to slow down. This is largely because of a less supportive global environment and higher-than-expected SELIC rates. These factors are making the economic outlook a bit cloudy.
Interest rates are on the rise, with forecasts suggesting they could hit 12.75% by early 2025. This increase means mortgages will become less affordable, potentially leading to a drop in property prices as fewer people can afford to buy homes.
The Brazilian Real has been devaluing, which initially made properties cheaper for foreign buyers. However, if economic instability continues, foreign investment might not hold up as expected.
Consumer confidence is taking a hit, reflecting the general economic uncertainty. This dip in confidence can lead to lower demand in the real estate market, as people become more cautious about making big purchases.
Historically, the Brazilian real estate market has been sensitive to economic instability. Fluctuations in currency value and interest rates have a direct impact on property prices, making the market quite volatile.
Sources: BBVA Research, BRIC Group
2) Central area rents will increase as demand for urban living grows
Rental prices in central Florianópolis have been steadily rising over recent years.
Even though there was a slight slowdown from August to September 2023, rents have jumped by 16.16% over the past year. This indicates a strong and consistent upward trend in rental costs.
Florianópolis is experiencing a population boom, growing at an annual rate of 2.1%. This surge is fueled by the city's economic opportunities and its appealing lifestyle, which in turn drives up the demand for housing, especially in central urban areas.
The tech industry and tourism sector in the city are thriving, leading to a higher demand for modern living spaces and urban conveniences like restaurants and services in central regions. This makes these areas increasingly attractive to potential residents.
People are drawn to central areas for their proximity to work and amenities, further pushing up demand. As more individuals seek to live close to these conveniences, rents in these areas are expected to continue rising.
With the ongoing growth in population and economic sectors, the demand for urban living in central Florianópolis is set to keep climbing.
Sources: ICLEI Publications, Inter-American Development Bank, The Rio Times
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) City center rental yields will drop as property prices rise faster than rents
In Florianópolis, rental yields in the city center are expected to decline as property prices rise faster than rents.
This trend has been noticeable over the past few years, especially in 2023 and 2024, and is likely to continue into 2025. The city's growing popularity as a tourist hotspot and tech hub is a major factor driving up property prices. While property values soar, rent increases are lagging behind.
For example, the FipeZAP Index showed that rent prices increased by 13.26% in total for the year, but the growth rate slowed significantly from August to September 2023. This means property prices are climbing faster than rents, which is squeezing rental yields.
Real estate agencies and investor reports often emphasize capital gains over rental income, highlighting this gap. This shift in focus is pushing property prices higher and lowering rental yields. The construction of luxury properties that don't match rental demand can also lead to a surplus, further impacting rental yields.
Investors are increasingly looking at capital appreciation rather than rental income, which is reshaping the market dynamics. This trend is particularly evident in the city center, where property prices are outpacing rent increases, making it challenging for rental yields to keep up.
As a result, those considering buying property in Florianópolis should be aware of these dynamics. The market is evolving, and understanding these trends can help in making informed decisions. Rental yields are under pressure, and this is something potential buyers need to consider.
Source: The Rio Times
4) Florianópolis will see a steady rise in property prices as it attracts more new residents
Florianópolis is seeing a steady rise in population, with more people moving to the city each year.
This growth is largely because Florianópolis is becoming a popular tech hub and tourist spot, drawing in professionals and investors. Everyone wants a piece of the action, especially in prime areas like the beach or near tech centers.
Historically, property prices here have been on the up and up, with experts predicting a 3% to 7% annual increase in 2025. This means buying property now could be a smart move.
Urban development is also in full swing, thanks to projects funded by FONPLATA. These improvements are set to boost the city's appeal and, in turn, property prices.
The tech and innovation sectors are expanding, creating more job opportunities. This attracts skilled professionals, which increases demand for housing even further.
Long-term projections indicate a steady increase in property prices as Florianópolis continues to attract new residents.
Sources: World Population Review, FONPLATA, Macrotrends
5) New commercial developments will boost interest in the island's western part, drawing more residents
The western part of the island is buzzing with excitement due to new commercial developments drawing in fresh faces.
One major game-changer is the "Contorno Viário de Florianópolis" project, completed in 2024. This impressive 50-kilometer bypass, featuring tunnels and bridges, has made the area far more accessible and appealing for both businesses and potential residents.
With these developments, property values in the west have been climbing. When new infrastructure and amenities pop up, they often make a place more desirable, naturally driving up property values. This trend has been noticeable since 2023, as more folks recognize the potential for a better quality of life here.
Adding to the allure, the tech park in Florianópolis has expanded, creating a wealth of job opportunities. With about a thousand companies now operating, the area is buzzing with economic activity, attracting more residents to the western part of the island.
This influx of new businesses and job opportunities is a key reason why more people are eyeing this area as their new home. The western part of the island is becoming a hotspot for those seeking a vibrant community and promising prospects.
Sources: High Net Worth Immigration, The Rio Times
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6) Smart home technology will become standard in new builds, drawing tech-savvy buyers
Smart home technology is quickly becoming a must-have in new property developments, especially for tech-savvy buyers.
In recent years, there's been a noticeable surge in the use of smart home devices worldwide. By 2025, it's expected that over half of US consumers will have adopted this technology, a jump from about 40% in 2021. This shift is part of a larger trend, with the global market projected to hit $174 billion by 2025.
People are increasingly looking for homes with integrated tech solutions. A significant 70% of consumers prioritize security features in their smart home devices, followed by energy efficiency and convenience. This demand is pushing developers to make smart technology a standard feature in new builds.
Younger buyers are particularly keen on these features. Nearly half of homeowners globally are interested in transforming their homes into smart homes. This youthful enthusiasm is a major driver for incorporating smart tech in new housing projects.
Energy efficiency is another big draw for smart home tech. Smart appliances can cut energy use by 10% to 15%, and smart thermostats help by adjusting temperatures when no one is home. These features not only make life easier but also support sustainability efforts.
Sources: Exploding Topics, Enterprise Apps Today, BIO Conferences, Omdia Tech, Restack
7) The island's southern region will attract more investors with the rise of eco-friendly developments
The southern region of Florianópolis is becoming a hotspot for investors, thanks to the rise of eco-friendly developments.
In recent years, particularly in 2023 and 2024, there has been a surge in demand for sustainable housing options in Brazil. This trend is largely fueled by European buyers who are keen on reducing energy costs and making a positive environmental impact. The southern part of the island, with its lush landscapes and commitment to green living, is perfectly positioned to meet this demand.
Backing this green wave, the Inter-American Development Bank has approved a hefty $120 million loan to boost sustainable urban development in Florianópolis. This funding is earmarked for low-carbon housing projects that not only focus on environmental benefits but also prioritize access for female heads of household. Such initiatives underscore the region's dedication to sustainable growth, making it a magnet for eco-conscious investors.
The local government is also playing its part by championing green infrastructure. Efforts to revitalize the historic center with energy-efficient and green criteria are underway, further enhancing the city's allure for eco-friendly projects. The southern region's natural beauty complements this eco-friendly ethos, making it even more appealing to investors looking for sustainable opportunities.
With its stunning natural attractions and a strong push towards sustainability, the southern region of Florianópolis is set to become a prime destination for those seeking eco-friendly investments. The combination of government support, international funding, and a growing interest in sustainable living creates a perfect storm for investment opportunities.
Investors are increasingly drawn to areas that offer both environmental benefits and financial returns, and the southern region of Florianópolis is ticking all the right boxes. As eco-friendly developments continue to gain traction, this area is poised to become a leading example of sustainable urban living.
Sources: Inter-American Development Bank, Brazil Real Estate Trends
8) 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.
Take Florianópolis, for example. With the completion of the "Contorno Viário de Florianópolis" highway bypass in December 2023, the region has seen a major upgrade in connectivity. This project included extensive road works, tunnels, and bridges, making it much easier for people to travel in and out of the city. This kind of accessibility is a game-changer for property values.
Thanks to these improvements, property values in the area are expected to rise. The highway bypass is designed to reroute up to 50% of transit traffic away from the metropolitan area, reducing congestion significantly. This makes the city more appealing to both residents and investors, which often translates into higher demand for real estate and naturally drives up property prices.
We've seen this happen in other places too. Take Barra da Tijuca in Rio de Janeiro, for instance. After investments in transportation and connectivity, the area experienced a significant appreciation in property values. When infrastructure makes a place more accessible and livable, it becomes more attractive for people to live and invest in.
In Florianópolis, the new highway isn't just about convenience; it's about transforming the region's real estate market. Investors are taking note, and the buzz is real. The improved infrastructure is expected to make the area a hot spot for real estate investment.
So, if you're considering buying property in the country, keep an eye on areas with upcoming infrastructure projects. These improvements can turn a once-remote area into a prime real estate location, offering both lifestyle benefits and investment potential.
Sources: The Rio Times, High Net Worth Immigration, BNamericas
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) Property prices in Ingleses will drop due to market saturation from overdevelopment
The Ingleses neighborhood in Florianópolis is seeing a big jump in unsold properties.
In 2023, the number of unsold new houses shot up by 53% compared to the previous year, hitting 116,000 houses. This is the highest level since July 2009, hinting at a possible oversupply in the housing market. With so many homes sitting empty, it’s a clear sign that the market might be getting too crowded.
There’s also been a surge in construction permits in Ingleses, pointing to a lot of building activity. Too many properties can lead to market saturation, which often means prices drop because buyers have more choices. This is something to keep an eye on if you’re thinking about buying here.
People are starting to prefer less crowded neighborhoods, according to consumer surveys. As Ingleses gets more built up, it might lose its charm for potential buyers, leading to a dip in demand. This could be a red flag for anyone considering investing in property in this area.
Reports are also coming in about infrastructure strain due to the rapid development. Community concerns about overdevelopment are growing, and this can hurt property values. It’s something that could make Ingleses less appealing to future buyers.
Source: Wolf Street
10) Campeche's property values will rise as it gains a reputation as a family-friendly neighborhood
The Campeche area is becoming a hotspot for families, boosting property values significantly.
Families are flocking here because of the rising demand for family-friendly amenities. Back in 2023, there was a surge in requests for playgrounds, parks, and community centers, as highlighted by local government plans and community surveys. This demand is reshaping the neighborhood into a more vibrant and welcoming place for families.
Schools in Campeche are seeing a boom too. Between 2023 and 2024, student enrollment jumped by 15%, showing that more families are choosing to settle here. This trend is a clear sign that Campeche is becoming a preferred destination for those looking to put down roots.
Adding to the appeal, the area has invested in new parks and recreational facilities. In 2024, a 10-hectare park opened, complete with playgrounds, sports fields, and walking trails. This development has been a hit with residents, further cementing Campeche's reputation as a family-friendly spot.
These changes are not just about aesthetics; they are transforming Campeche into a community where families can thrive. The combination of improved amenities and educational opportunities is making it a top choice for those seeking a family-oriented lifestyle.
With these developments, it's no wonder that property values are on the rise. The area's growing reputation as a family-friendly neighborhood is attracting more buyers, eager to be part of this thriving community.
Sources: Diário Catarinense, Folha de Florianópolis, Gazeta do Povo
11) Florianópolis's northern neighborhoods will attract more buyers with new infrastructure projects enhancing accessibility
The northern neighborhoods of Florianópolis are buzzing with excitement due to new infrastructure projects improving accessibility.
In 2023 and 2024, the Santa Catarina Norte Bridge was a game-changer, connecting Governador Celso Ramos to the north of Florianópolis Island. This wasn't just about a bridge; it was about easing traffic, boosting tourism, and giving the local economy a real shot in the arm.
People are talking about how the Ponte Santa Catarina Norte is making the northern part of the island more accessible. The bridge is cleverly integrated with the existing road network, maximizing its potential while keeping environmental impact low. This has led to a noticeable uptick in property prices in areas like Canasvieiras and Ingleses.
Real estate agents are seeing a surge in interest for properties in these northern neighborhoods. Both tourists and locals are curious, and it's no wonder. The media is all over the Ponte Santa Catarina Norte project, highlighting how it's transforming mobility in the region and making the northern part of the island easier to reach.
With this newfound accessibility, tourism is expected to flourish, and the local economy is set to benefit. The buzz around the bridge is palpable, and it's clear that economic development is on the horizon.
So, if you're thinking about buying property in Florianópolis, now might be the time to look north. The changes are real, and the potential is huge.
Sources: Click Petróleo e Gás, The Rio Times
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12) Jurerê Internacional will remain a premium location with steady price increases expected
Jurerê Internacional is a hot spot for real estate, with prices steadily climbing.
In 2024, the average price for a 3-bedroom apartment hit AUD $308,311, showing just how in-demand this area is. The luxury market here is thriving, with high-end properties offering exclusive amenities and stunning ocean views. This attracts not only wealthy Brazilians but also international investors looking for a slice of paradise.
Florianópolis, the city where Jurerê Internacional is located, has a booming tourism industry. This means the rental market is strong, with high occupancy rates for vacation rentals. It's a win-win for property owners who can capitalize on both long-term value and short-term rental income.
Infrastructure is another big draw. The area is seeing continuous upgrades, like the modernization of highways and expansions at Hercílio Luz International Airport. These improvements make Jurerê Internacional even more appealing, adding to its allure as a premium location.
Land is scarce here, which is a good thing for property values. With limited space for new developments, existing properties hold their value and even see price increases. This scarcity ensures that the area remains exclusive and desirable.
Sources: Real Estate, High Net Worth Immigration, Airbnb
13) Luxury rental yields will stay stable with continued high demand from affluent renters
Florianópolis is a hotspot for luxury rentals, thanks to its vibrant mix of tourism and tech innovation.
With its stunning beaches and growing tech scene, Florianópolis attracts a steady stream of tourists and young professionals. This keeps the occupancy rates for luxury rentals consistently high, making it a reliable market for investors.
In October 2024, the median rent for luxury apartments in Florianópolis climbed to R$9,005. This increase highlights the resilience of the luxury market, even as other areas in Brazil see slower rent growth.
The city is seeing a demographic shift, with more affluent individuals choosing to call Florianópolis home. They are drawn by the economic opportunities and the unique blend of natural beauty and urban amenities.
Adding to the allure, there's a limited supply of luxury rentals due to a shortage of housing construction permits. This scarcity ensures that demand remains high, supporting stable rental yields.
For those considering investing in Florianópolis, the luxury rental market offers a promising opportunity, driven by high demand from affluent renters.
Sources: The Rio Times, Rentberry
14) Tax incentives for green buildings will boost demand for eco-friendly properties
Tax incentives for green buildings are making eco-friendly properties more appealing financially.
In places like Florianópolis, there's a growing buzz around eco-friendly homes. The city's push for sustainability and people's desire for healthier living spaces are driving this trend. As folks learn more about the perks of sustainable living, they're increasingly drawn to eco-certified buildings.
Media coverage is playing a big role too. With more stories highlighting the benefits of eco-friendly properties, like energy efficiency and better indoor air quality, consumer interest is on the rise. This newfound awareness, paired with the financial perks of tax incentives, is nudging more people towards investing in sustainable homes.
These tax incentives, such as the 45L Tax Credit, offer developers significant savings. The best part? These savings often trickle down to buyers, making sustainable homes more affordable for everyone.
In Florianópolis, the demand for eco-friendly properties is not just a trend; it's a reflection of a broader shift towards healthier and more sustainable living environments. As more people catch on to the benefits, the demand for these properties is only expected to grow.
With the Inflation Reduction Act of 2022 expanding these incentives, the financial appeal of eco-friendly properties is stronger than ever. This is great news for anyone looking to invest in a home that's both kind to the planet and easy on the wallet.
Sources: KBKG, Building Innovation Hub
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) Lagoa da Conceição will see property prices rise as it becomes a luxury real estate hotspot
Properties in Lagoa da Conceição are becoming a luxury real estate hotspot, and prices are on the rise.
In 2023, sales data revealed a notable trend: luxury homes, like a mansion with 3 suites, were listed for GBP 704,311. This shows a strong demand for upscale living. Looking ahead, experts predict a 3% to 7% increase in property prices in Florianópolis by 2025, thanks to both local and international interest in the area's vibrant coastal lifestyle.
Florianópolis is buzzing with tourism, which is great for the economy and drives up demand for luxury vacation rentals. Wealthy individuals from places like Portugal, Italy, and the US are flocking here, drawn by favorable exchange rates and cultural connections.
Infrastructure is getting a facelift, making the area even more appealing. Government projects are enhancing public transport and amenities, which naturally boosts property values. New residential developments in Lagoa da Conceição are also catching the eye of potential buyers, pushing prices up.
Sources: Real Estate Brazil, High Net Worth Immigration, Properstar
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.