BRAZIL INVESTMENT PROPERTY

Brazil investment property market assessment:

Brazil’s housing market is now showing signs of improvement, buoyed by rising property demand and supply. In November 2022, Brazil’s FIPEZAP house price index rose by 6.34% from a year earlier, up from y-o-y increases of 5.29% in 2021, 3.67% in 2020, and zero growth in 2019, according to figures released by Fundação Instituto de Pesquisas Econômicas (FIPE). The past two months had been its biggest y-o-y price growth since December 2014.

However when adjusted for inflation, nationwide house prices rose by a meager 0.42% over the same period.

The national figure in fact conceals large variations in local house price movements. During the year to November 2022:

In São Paulo, house prices rose by an average of 5.19%, the biggest y-o-y rise in more than seven years. However when adjusted for inflation, prices actually declined slightly by 0.68%.
In Rio de Janeiro, house prices rose by a modest 2.33% but actually fell by 3.37% in real terms. Yet it is important to note that the city’s y-o-y house price growth has never exceeded 3% since early-2015.
In Brasilia, house prices rose by a modest 2.38%, but actually declined by 3.32% when adjusted for inflation. It was a sharp deceleration from y-o-y increases of 8.66% in November 2021 and 9.05% in November 2020.