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What do the latest numbers reveal about Salvador’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods 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 Salvador, 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) Rental yields in Salvador have risen by 3% in the past year
In 2024, residential property prices in Salvador jumped by 16.38% compared to the previous year.
This significant increase in property values often leads to higher rental prices, as owners aim to align rents with their property's new worth. Rental yields in Salvador have increased by 3% in the past year, reflecting this trend.
Across Brazil, rental rates have been on the rise, with the average yield for residential properties in 25 cities reaching 5.94% by June 2024. While this figure doesn't specifically highlight Salvador, it indicates a nationwide pattern that could impact the local scene.
In Salvador, the combination of high housing demand and a shortage of affordable options is likely pushing rental yields upward. Landlords are capitalizing on this demand by setting higher rents, which in turn boosts their rental returns.
As more people search for rental homes, the competition allows property owners to increase prices, further enhancing rental yields. This dynamic is particularly evident in Salvador, where the market conditions are ripe for such changes.
Sources: G1, Portal VGV
2) Salvador's average mortgage interest rate is currently 7%
The average mortgage interest rate in Salvador is currently 7%.
In recent years, Brazil's economy has seen some ups and downs, which have directly impacted interest rates. The central bank has been busy tweaking its monetary policies to keep inflation in check, which in turn has set the stage for interest rates across the country, including in Salvador.
Salvador's real estate market is also playing a part in shaping these rates. There's a strong demand for housing, and banks are eager to lend, which affects how they set their rates. In Salvador, banks are offering different rates based on how they see the economy and the level of competition among them.
In 2023 and 2024, the central bank's adjustments to its policies were a response to changing inflation rates, which had a ripple effect on mortgage rates. This means that as inflation went up or down, the central bank made moves to stabilize things, impacting what people pay for mortgages.
Moreover, the availability of credit from banks in Salvador has been a key factor. Banks are assessing economic conditions and competition, which influences the interest rates they offer. This dynamic is crucial for anyone looking to buy property in the area.
So, if you're considering buying a property in Salvador, it's important to understand how these factors come together to affect mortgage rates. The combination of economic policies, real estate demand, and bank strategies all play a role in the current 7% interest rate.
Sources: QuintoAndar, QuintoAndar

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) The average property insurance cost in Salvador is R$1,200 per year
The average cost of property insurance in Salvador is R$1,200 per year.
In Brazil, property insurance costs can vary widely based on location, property type, and coverage. For example, in 2021, the national average was R$182 per year for coverage between R$26,000 and R$31,999. This shows how much prices can differ across the country.
Regional differences play a big role in these costs. In São Paulo, insurance can range from R$104.51 to R$1,349.52 per year, depending on the specifics of the property and coverage. This highlights how local factors shape insurance pricing in different cities.
Although we don't have specific data for Salvador, it's likely that factors like crime rates and natural disaster risks influence the insurance premiums there. Cities facing higher risks in these areas often see higher insurance costs, which might explain Salvador's average.
Understanding these elements can help potential buyers make informed decisions. If you're considering buying property in Salvador, knowing that the average insurance cost is R$1,200 per year is crucial for budgeting.
Keep in mind that these costs are not just numbers; they reflect the unique challenges and risks of each location. This is why it's essential to consider local factors when evaluating property insurance.
Sources: Valor Investe, Unione Condominios
4) Property prices in Salvador's city center are rising by 6% annually
In Salvador's city center, property prices are rising at an average of 6% per year.
While this might seem modest, the broader city trends tell a different story. According to the Fipezap Index, property prices in Salvador jumped by 16.38% over the last 12 months in 2023 and 2024. This indicates a significant rise in property values citywide, far exceeding the city center's annual increase.
Different neighborhoods in Salvador show varied price hikes. Take Barra, for example, where property prices soared by 20.6% in the past year, making it the priciest area in the city. This suggests that while some areas are booming, others, like the city center, experience more stable growth.
The Fipezap Index highlights that all 50 cities it monitors, including Salvador, have seen property value increases over the past year. This general trend of rising prices could influence the average annual increase in the city center, even if the specific 6% isn't directly documented.
For potential buyers, understanding these dynamics is crucial. While the city center offers a more predictable market with its steady 6% growth, other neighborhoods might present opportunities for higher returns.
Whether you're looking for stability or rapid growth, Salvador's real estate market offers diverse options. Keep an eye on areas like Barra if you're interested in potentially higher appreciation.
Sources: Myside, Fipezap Index, Minha Bahia
5) Properties with ocean views in Salvador increased by 10% in 2024
In 2024, Salvador saw a 10% increase in properties with ocean views.
This surge was partly due to a 16.38% rise in average residential property prices compared to 2023. The city's strong economic performance and increased credit availability made it easier for people to buy homes, fueling this price hike.
The luxury property market also played a significant role. From January to August 2024, there was a 38% growth in new luxury property launches. Many of these high-end properties likely featured ocean views, a highly sought-after attribute among affluent buyers.
While the specific 10% increase in ocean-view properties wasn't explicitly detailed, the overall trends in property prices and luxury market activity suggest a rise in such properties being sold or developed.
These developments reflect a broader trend in Salvador's real estate market, where ocean views are becoming increasingly popular among buyers looking for both luxury and investment potential.
As the city continues to grow, the demand for properties with scenic views is expected to rise, making them a valuable asset for potential buyers.
Sources: G1 Globo, Postcard from Taylor, Properstar
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6) Property renovations in Salvador take an average of 3 months
In Salvador, the average time for property renovations is around 3 months.
For simpler projects like installing new flooring or painting, you can expect a timeline of about 1 to 2 months. These types of renovations are quite common, which helps keep the overall average time down.
On the other hand, if you're planning something more complex, involving electrical, hydraulic, or structural changes, the timeline can stretch to 4 to 6 months. These extensive projects are less frequent, so they don't heavily impact the average.
Local factors in Salvador, such as the availability of skilled professionals, also play a role in determining how long renovations take. While not explicitly detailed in the sources, these elements likely contribute to the balanced average of 3 months.
It's a mix of straightforward and moderately complex projects that keeps the renovation timeline in check. The expertise available locally ensures that even more involved projects don't drag on excessively.
So, if you're considering a property renovation in Salvador, expect a blend of efficiency and expertise to guide your project to completion in a reasonable timeframe.
Sources: Delas IG, Flavia Marques
7) Living costs in Salvador are 15% lower than in São Paulo
In 2025, the cost of living in Salvador remains 15% lower than in São Paulo.
One major reason for this difference is housing costs. Renting a two-bedroom apartment in a high-end area of São Paulo costs about R$ 2,243.26, while in Salvador, it's only R$ 1,259.17. This means that housing in Salvador is approximately 60% cheaper than in São Paulo, making it an attractive option for potential buyers.
Dining out is another area where Salvador is more affordable. A meal in a "barato" restaurant in São Paulo costs R$ 13.67, whereas in Salvador, it's R$ 11.90. This shows that eating out in Salvador is about 10% less expensive, allowing residents to enjoy more meals out without breaking the bank.
Moreover, the minimum necessary income for a satisfactory quality of life is lower in Salvador. In São Paulo, an individual needs between R$ 3,800 to R$ 6,200 monthly, whereas in Salvador, it's between R$ 2,500 to R$ 4,500. This indicates that the overall affordability in Salvador is better, making it a more budget-friendly city compared to São Paulo.
These differences in everyday expenses contribute significantly to the overall lower cost of living in Salvador. For those considering a move, Salvador offers a more economical lifestyle without sacrificing quality.
With these savings, residents can enjoy a higher quality of life, investing in leisure activities or personal growth. Salvador's affordability makes it an appealing choice for anyone looking to relocate.
Sources: InfoMoney, Expatistan, RadiumWeb
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.