The 15 most expensive Brazilian cities to buy a property
RIO DE JANEIRO, BRAZIL – The heating of the real estate market in 2021 was reflected in the strongest increase in the average price of a property in seven years: 5.29%, according to data from the FipeZAP+ index based on Internet ads.
But in many cases, the average value increased even above this level: in 14 of the 50 largest cities in the country that are part of the indicator, the adjustment accumulated last year exceeded the projected inflation of 9.68%, measured by IPCA, the IBGE (the exact figure will be known on Tuesday, December 11, with the release of the IPCA for December).
In five of the sixteen monitored capitals, the variation in the average price of real estate was well above 10% in 2021. The highest increase was registered in Vitória, in Espírito Santo, with almost 20% (19.86% in the most exact data), followed by Maceió, in Alagoas, with 18.50%.
According to specialists, the expressive high of 5.29% and above can be credited to several factors.
From the supply point of view, the pressure on construction costs, especially for inputs such as steel and other metallic materials, hydraulic materials, and wood, all of which have risen by more than 20% this year.
FGV’s INCC (National Index of Construction Cost), which serves as a benchmark for prices in the construction industry, ended 2021 with a high of 14.03%; the sub-index of materials and equipment advanced, even more, 24.37%.
From the point of view of demand, the market showed record sales numbers throughout the year due to the lowest interest rates in history – although on an upward trajectory in the second half, following the Selic’s rise – and the still strong appetite of the high and medium-high income brackets, which managed to preserve income despite the country’s low growth.
The numbers of the FipeZAP+ Index at the close of 2021 also show that the cities of São Paulo and Rio de Janeiro continue to have the highest average prices of the square meter for sale, despite the more timid increase throughout the year: 9,708 reais and 9,650 reais in the last month of the year, respectively.
RIO DE JANEIRO IS OVERRATED
The fact that notoriously dangerous Rio de Janeiro, with its corrupt politicians, endless favelas, and dangerous militias where children regularly die from stray bullets, is still in the top three has mostly to do with the fact that 70% of the city is far too dangerous for non-Brazilians to buy property in these areas.
Foreigners, the main buyers in Rio, therefore have no choice but to purchase real estate in the small south zone and the west zone of the city, because only there is their security guaranteed. And this is the main reason for the high prices per square meter, which are in no way compatible with the low level of service and quality of life in the city.
SANTA CATARINA IS ONE OF THE BRAZILIAN STATES OF THE FUTURE
Another highlight were cities on the Santa Catarina coast: Florianópolis and three cities to the north — Balneário Camboriú, Itapema, and Itajaí — were among the ten cities with the highest average price per square meter among the 50 that are part of the FipeZAP+ survey.
Santa Catarina is not only beautiful but also safe and practically free of favelas. The quality of life is almost of European standard. Nature is unpolluted and intact, the beaches are beautiful and clean, and an ideal environment for the rapidly growing high-tech industry.
More and more well-educated IT entrepreneurs from Brazil and abroad and freelancers are moving to the Santa Catarina coast, which is one of the main reasons for the price increase. This development will continue.
The most expensive cities to buy a property in 2021
(average value of the square meter, in reais)
São Paulo (SP) 9.708
Rio de Janeiro (RJ) 9.65
Balneario Camboriu (SC) 9.358
Itapema (SC) 8.856
Brasilia (DF) 8.788
Florianópolis (SC) 8.582
Vitória (ES) 8.562
Itajai (SC) 7.909
Barueri (SP) 7.748
Curitiba (PR) 7.518
Belo Horizonte (MG) 7.14
Niterói (RJ) 6.718
São Caetano do Sul (SP) 6.695
Recife (PE) 6.503
Porto Alegre (RS) 6.386
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.09%
177,583.27
+1.09%
65,048.39
-0.67%
11,347.98
-0.86%
2,999,080
+0.66%
2,467.23
+0.38%
59,928.30
-0.14%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 177,583.27 | +1.09% | +21.85% | 175,664.62 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times