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Are you considering buying a nice property in Fortaleza? You're not alone!
Many people are charmed by Fortaleza's coastal vibe and dream of owning a luxurious beachfront villa or a modern condo there.
Does it make sense, though? Are property prices increasing in Fortaleza? How much does it cost? Should I invest in Meireles or Praia de Iracema? And the taxes? What rental yields should I expect?
We've got it all sorted. No worries.
At TheLatinvestor, we've extensively researched this market; As a matter of fact, we have condensed 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 Fortaleza?
Is the property market thriving or struggling? We'll find the answers through data analysis.
Types of properties
In Fortaleza, you can find various types of properties for sale to suit your preferences.
These include apartments with different sizes and amenities, houses ranging from cozy homes to larger family residences, beachfront properties offering scenic views, commercial spaces suitable for businesses, and vacant land for those looking to build their own structures.
Whether you're seeking a place to live, invest, or establish a business, Fortaleza offers a diverse range of property options to choose from.
Better to buy or rent?
(In case you want it for yourself, not for rental purposes)
If Fortaleza, the vibrant city in Brazil, has caught your interest as a place to settle, you might be considering whether it's better to buy or rent a property in this coastal destination.
Usually, buying is better than renting in Fortaleza due to its relatively low real estate prices and its potential for appreciation.
Nonetheless, if you favor flexibility, renting is the ideal route.
Property prices in Fortaleza
On average, according to the last data from FipeZAP, buying a property in Fortaleza will cost you around $2,000 per square meter.
There are big differences, obviously. A beachfront property in Fortaleza might have a different price per square meter than a condo in Meireles. We actually give you a more detailed breakdown in our pack for buying property in Fortaleza and in Brazil.
To put things in perspective, it means that, instead of buying an apartment in Manhattan, you can become the owner of 7 properties in Fortaleza.
Also, housing prices in Fortaleza are 52% cheaper than in São Paulo.
The most expensive neighbourhoods in Fortaleza are probably Jardim Iracema, Praia de Iracema, and Aldeota, while the cheapest neighbourhoods are likely Barra do Ceará, Pajuçara, and Messejana.
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.
Keep this in view when pondering the viability of buying a property in in Fortaleza.
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 Fortaleza 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 Fortaleza
Buying real estate in Fortaleza can be challenging due to the difficulty in obtaining reliable and up-to-date information. That's why we have created the pack to buy property in Fortaleza and in Brazil.
Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.
Now, we're providing you with a simplified version.
This is the step-by-step process to purchase a property in Fortaleza:
- Research the Fortaleza property market and regulations.
- Obtain a CPF number (Brazilian taxpayer ID).
- Get pre-approved for a mortgage or secure funding.
- Engage a reputable real estate agent familiar with Fortaleza.
- Visit properties and ensure they have "Matrícula" (property registration) and "Certidão Negativa" (debt certificate).
- Conduct property inspections and due diligence.
- Negotiate the price with the seller and sign a "Proposta de Compra e Venda" (purchase offer).
- Hire a real estate attorney to handle legal aspects and draft the "Contrato de Promessa de Compra e Venda."
- Pay a deposit (usually 10% of the property value) into an escrow account.
- Fulfill any outstanding requirements in the contract, such as obtaining necessary permits.
- Finalize the purchase at the notary's office (Escritura), where you and the seller sign the official property transfer document.
- Register the property in your name at the "Cartório de Registro de Imóveis" (Real Estate Registry Office).
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 Fortaleza
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Where to find a property
Looking for properties in Fortaleza, Brazil? These websites can help:
- Nacional - Offers properties for sale in Guarantã do Norte, MT, along with contact information.
- 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 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 Fortaleza is $2,000. A 1-bedroom property measuring 60 square meters would cost approximately $120,000, and a 2-bedroom property measuring 85 square meters would cost around $170,000.
However, the cost of properties will fluctuate depending on both their characteristics and their location.
Top neighborhoods in Fortaleza typically come with higher price tags. A house in Meireles might be around $380,000, and a house in Aldeota could cost about $350,000.
However, there are also places that won't strain your finances as much. You have the option to find an apartment in Mondubim for $70,000 or an apartment in Barra do Ceará for only $50,000.
Find a more detailed breakdown in our full pack for buying property in Brazil.
Risks and pitfalls
Here are the main pitfalls when buying property in Fortaleza, Brazil:
- Complex legal processes: Navigating Brazilian property laws and bureaucracy can be challenging for foreigners.
- Land tenure issues: Indigenous land claims may affect property rights and development plans.
- Coastal erosion: Fortaleza's coastal properties may be prone to erosion, affecting long-term investments.
- High taxes and fees: Brazil imposes substantial property transfer taxes and registration costs.
- Ownership disputes: Verifying clear title and dealing with squatters can lead to lengthy legal battles.
- Infrastructure gaps: Some areas lack basic amenities, impacting livability and rental demand.
- Unreliable utilities: Power outages and water shortages can affect property value and daily life.
- Currency exchange risks: Fluctuating exchange rates can impact foreign investors' purchasing power.
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 Fortaleza
Fortaleza is a vibrant and lively city with beautiful beaches, friendly people, and plenty of opportunities for investment, making it an ideal place to buy property.
Cost of living
The cost of living in Fortaleza is generally lower than in other cities in Brazil, with a wide range of affordable housing options and relatively low prices on food, entertainment, and transportation.
Here are some examples to better understand the cost of living in Fortaleza:
- Rent for a one-bedroom apartment in Meireles neighborhood: $600/month.
- Monthly public transportation pass with Metrofor: $30.
- Lunch for two with a traditional "moqueca" dish: $25.
- "Cajuína" (local cashew fruit drink) at a bar: $2.
- Groceries at Mercado Central: $80/week for a family of four.
- Basic utilities for an 85m² apartment with Enel: $70/month.
- Beach chair and umbrella rental at Praia do Futuro: $5/day.
- "Forró" dance class at a local cultural center: $15/month.
Neighbourhoods and spots
Since our goal is to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Fortaleza. For yields, prices and rents, check our property pack.
Meireles is a trendy neighborhood with a beautiful beachfront and a vibrant nightlife scene.
Beach access, nightlife, popular with tourists.
High real estate prices, can be crowded.
Aldeota is an upscale neighborhood with various shopping malls and good educational institutions.
High-end shopping options, quality schools.
Expensive living costs, heavy traffic.
Benfica is a historic neighborhood with a mix of old and modern architecture and a lively cultural scene.
Cultural attractions, historical charm.
Limited public transportation, safety concerns in some areas.
Mucuripe is known for its fishing village charm and is a great spot to enjoy fresh seafood.
Seafood markets, coastal views.
Lack of major amenities, occasional strong fishy smell.
Parangaba is a residential neighborhood with shopping centers and easy access to public transportation.
Good public transportation links, shopping options.
Limited green spaces, traffic congestion.
Cocó is known for its large park and outdoor recreational activities.
Green spaces, outdoor activities.
Residential areas may be distant from commercial hubs.
Joaquim Távora is a bohemian neighborhood with a mix of bars, restaurants, and cultural venues.
Lively nightlife, cultural attractions.
Noisy at night, limited parking.
Antônio Bezerra is a residential area with a local market and easy access to the city center.
Local market, proximity to city center.
Limited entertainment options, few upscale amenities.
Fátima is a traditional neighborhood with a mix of residential and commercial properties.
Various housing options, local shops.
Traffic congestion during peak hours.
Montese is a diverse neighborhood with a blend of residential and industrial areas.
Good ethnic food options, affordable housing.
Industrial areas may create pollution and noise.
Centro is the city's central business district with many historical buildings and commercial establishments.
Central location, historical landmarks.
High traffic, limited green spaces.
Life in Fortaleza
Fortaleza is the fifth largest city in Brazil and is an important economic hub in the northeast region. It has a large industrial sector and is known for its tourism, fishing, and agricultural industries.
What expats usually like the most in Fortaleza is the beautiful coastline, with its stunning white sand beaches and crystal clear waters, and the vibrant nightlife with its many bars, clubs and restaurants.
However, the crime rate of Fortaleza is still very high (with a value of 77, one of the worst scores in the world). The most common crimes in Fortaleza are robberies, muggings, and homicides.
Also, you have to know that Fortaleza is susceptible to tropical storms and hurricanes due to its coastal location in the Atlantic Ocean.
A good point for a property investor - Fortaleza has a mass rapid transit system called Metrofor, which consists of more than 15 stations.
Access to healthcare in Fortaleza is generally good, with a range of public and private healthcare facilities available.
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Renting out in Fortaleza
This section is for you if you want to buy property solely for renting out and earning income.
Tenant Profiles in Fortaleza
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 Fortaleza, 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, students, and families looking for a convenient and affordable place to live in Fortaleza. Short-term vacationers and business travelers are also in demand in the area.
Here is a little summary table we've made for you.
|Property type and area
|Profiles of potential tenants
|What they are looking for
|Expected monthly rent in $
Apartment in Meireles
Beachfront location, convenience
$700 - $1,200
House in Aldeota
Central area, schools
$1,200 - $2,000
Studio in Praia do Futuro
Youthful crowd, tourists
Beach access, entertainment
$500 - $900
Condo in Cocó
Professionals, nature lovers
Park surroundings, tranquility
$800 - $1,500
3-Bedroom Apartment in Mucuripe
Harbor views, local markets
$1,000 - $1,800
High-rise Apartment in Dionísio Torres
Professionals, young couples
Modern living, city views
$1,200 - $2,200
1-Bedroom Apartment in Varjota
Singles, young professionals
Nightlife, trendy neighborhood
$600 - $1,000
Nowadays, the rental yields you get in Fortaleza are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.
Properties located in the downtown and beach area of Fortaleza tend to give the best rental yields due to their prime location and strong demand from tourists and locals alike. Additionally, properties located in areas with high population density and close to amenities such as public transportation, shopping centers, and parks can also provide good rental yields.
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 Fortaleza are taxed at 15%, which is not much.
You could also decide to rent short-term to tourists visiting Fortaleza's beaches and other attractions, as well as business travelers attending conferences or events in the area. Additionally, you could target people coming to the city for medical treatments or those looking for a temporary home away from home.
If you decide to go with that option, look for properties in Meireles Beach, Mucuripe Beach, or Aldeota, as these are popular areas with tourists that are looking for short-term rentals.
Currently, there are approximately 3,200 active Airbnb listings in Fortaleza, reflecting a highly dynamic and bustling short-term rental market. The average daily rate is at $52.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Fortaleza can make around $500 per month. Also, the average occupancy rate is estimated at 57%.
Is it worth buying real estate in Fortaleza then?
Certainly, buying a property in Fortaleza can be a smart move for those looking for a long-term home, an affordable investment, or rental income.
Fortaleza's real estate market offers relatively lower prices compared to other Brazilian cities, making it an attractive option for budget-conscious buyers.
If you plan to settle down in this coastal paradise, purchasing a property can provide stability and potential for appreciation over time, as Brazil's economy is expected to grow.
Rental income is also promising, with rental yields between 5% and 7% in high-demand areas, catering to tourists, professionals, and families.
However, for short-term stays, risk-averse investors, or those unfamiliar with local regulations, buying property in Fortaleza might not be the best choice.
The market comes with its share of risks, including complex legal processes and high property transfer taxes. If you prioritize flexibility or lack in-depth knowledge of the market, renting may be a more suitable option.
In essence, while Fortaleza presents enticing opportunities for property ownership and investment, individuals should carefully weigh their goals, risk tolerance, and market awareness to determine if it aligns with their unique circumstances and preferences.
Make sure you understand the real estate market in Fortaleza
Don't rush into buying the wrong property in Brazil. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.