Contrary to popular belief, São Paulo and Rio de Janeiro aren’t Brazil’s cities with the highest residential property prices per square meter.
Instead, the top three spots belong to Balneário Camboriú and Itapema in the Southern Santa Catarina state and Vitória in Espirito Santo.
São Paulo ranks fourth, followed by Florianópolis (Santa Catarina), Itajaí (Santa Catarina), and then Rio de Janeiro.
These insights are from a recent report by FipeZAP+.
Balneário Camboriú boasts an average cost of R$12,335 (US$2,500) per square meter, while São Paulo and Rio de Janeiro have average prices of R$10,549 and R$9,926, respectively.
Experts suggest that Balneário Camboriú’s high prices result from its developed infrastructure, accessibility, and demand for apartments. And it is very safe.
Investments in the city’s beach expansion have also contributed to its appeal.
Recent marketing strategies have also drawn international attention, such as a campaign featuring football star Cristiano Ronaldo by FG Empreendimentos.
This developer currently has properties priced up to R$65 million, with plans for even higher-valued units in the future.
However, there’s a contrasting trend in cities like São Paulo, where luxury residences like Bueno Brandão 257 and Casa Alto de Pinheiros cater to high-end buyers, with prices reaching up to R$50,000 per square meter.
Luiz França from the Brazilian Association of Real Estate Developers points out that cities with diversified economies and thriving business sectors typically offer better job opportunities, thereby attracting those willing to invest in real estate and pushing up property prices.
The overall residential property price has increased by 5.61% in the past year, according to the FipeZAP index. Experts project a potential rise in property prices in the near future, followed by stabilization.
Lastly, in Balneário Camboriú, there seems to be a shift from property investment to residence.
Post-pandemic, many look at these properties as homes, signaling a changing trend in the Brazilian real estate market.