Brazil » Rental Market

It is not only the stunning coastlines and Brazil’s natural beauty that attracts people, but the consistent substantial rental yields in the bigger cities also attract foreigners to invest in Brazilian real estate. A buy-to-let situation in Brazil can provide reliable rental income from the property because of the high rental yields. The growth of tourism, focus of the government on developmental projects has raised expectations for better rental yields in Brazil. Growing tourism ensures the consistent demand for rental accommodation and holiday homes in Brazil. Properties located in the tourist hotspots are most promising as the rental yields from here can covers all the mortgage bills of a year from the income during the peak months alone.  The growing number of tourists that was 3.2 million foreign leisure travelers alone in the first six months of 2008 alone goes to show the growing demand for rental places. Property owners can benefit by collecting higher rental returns in Brazil. The recent developments of resorts in different areas are giving rise to a new property market and boosting Brazil property rental market.

 

 

According to a survey by 2007, the number of households in rental accommodation rose to 153,000, 57.7% more than in 2001. Some people in Brazil for better earnings buy vocation houses that they use at times and rent out for some part of the year. While others are buying property in gorgeous locations for high annual occupancy and attractive rental returns.

The most popular place for property rental in Brazil is its beautiful city Rio de Janeiro as it promises very high yields. There is high local demand as there is not enough accommodation to match the demand. It is also a favourite tourist destination inviting number of travelers from around. Rio represents a strong rental market. It’s predicted that the rental income in the region is around 8-10%, while some developers claim 18% rental yields are also achievable. Investors from abroad attracted by the property and rental market potential of Rio are fast making investments. Institutional investors are also investing bringing in their expertise and funds. The best places to invest in Rio would include the districts of Ipanema and Leblon.

The north east region of Brazil particularly is witnessing a boom in new housing as well as experiencing an increase in the house rental market. Beach resorts such as Natal, also represents another promising rental market.  It is a place where new International Airport and numerous developments are taking place to entice the tourists and investors from around the world. It also offers direct flights from London.