Brazil: rental yields low, prices falling

December 27, 2018

Last Updated: Dec. 27, 2018
RIO DE JANEIRO - Apartments PRICE/SQ.M. (US$) YIELD (p.a.) PRICE/SQ.FT. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Botafogo 3,098 9.79 3.79% 288 0.91
Copacabana 2,999 9.01 3.61% 279 0.84
Flamengo 2,840 8.76 3.70% 264 0.81
Gavea 4,170 10.82 3.11% 387 1.01
Ipanema 4,833 13.13 3.26% 449 1.22
Jardim Botanico 3,774 10.56 3.36% 351 0.98
Lagoa 4,149 10.30 2.98% 385 0.96
Leblon 5,242 13.91 3.18% 487 1.29
Barra da Tijuca 2,635 7.98 3.63% 245 0.74
SAO PAULO - Apartments
Brooklin 2,870 14.42 6.03% 267 1.34
Campo Belo 2,585 10.82 5.02% 240 1.01
Itaim Bibi 3,446 17.00 5.92% 320 1.58
Jardins (America, Europa, etc) 3,167 13.13 4.98% 294 1.22
Moema 2,850 11.85 4.99% 265 1.10
Morumbi 1,496 6.18 4.96% 139 0.57
Santo Amaro 2,000 8.76 5.26% 186 0.81
Vila Nova Conceicao 4,630 18.02 4.67% 430 1.67
Vila Olimpia 3,572 18.02 6.05% 332 1.67
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Sources: FIPE and ZAP Definitions: Data FAQ See also: Update Schedule

Prices have begun to move strongly down in Brazil, and in terms of US dollars the downward move is much greater because of the decline of the Brazilian Real by 30% over the past three years, with some recovery since the beginning of 2017.

Gross rental yields - what you can earn from an apartment before tax and other expenses - have continued to move down, and in most parts of Sao Paolo and Rio being a landlord generates a much less attractive return-on-investment than it did a few years ago. In Rio, yields of 3% to 4% are typical, in Sao Paolo apartment yields are rather higher.

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