Rio de Janeiro property rental prices increasing fast
Posted: 08/30/10 with the tags Property market Rentals
The growing personal income levels and increase in employment levels, both results of the growing economy in Brazil, has led to increasing rental prices in Rio de Janeiro.
The average rental price increase in Rio de Janeiro for the last two years has been 40%, but in some parts of Rio the rental rates have more than doubled. Despite the fact that many Brazilians are increasingly buying property in Brazil with bank finance, there are also a high number of people opting for renting. Combined with a shortage of properties in good locations, the increase has been very fast in Rio.
Rio de Janeiro has received a lot of media attention due to the World Cup 2014 and the 2016 Olympic Games which both will be hosted in Rio de Janeiro. This has led to increasing property investments in Rio, but the main reason for the growing rental prices is the domestic economy and increasing income levels of the Brazilian population. Rental properties located in the prime areas in Rio, such as Leblon, Copacabana, Lagoa, Jardin Botânico and Gávea, are not even being advertized by rental agencies, as there are waiting lists for rental clients in these areas.
Property prices in Rio de Janeiro have also increased fast the last two years, and in some parts the prices have increased by more than 200 %. Recent changes to the law has also made it more attractive for owners to rent out their property, which has made it more attractive for investors to consider a Rio property as part of their Brazil property investment portfolio.
This same effect is not only seen in Rio, and the northeast of Brazil also offers great investment opportunities. Property prices in northeastern Brazil are significantly cheaper than in Rio, and serious investors looking for investment property in Brazil stand good chances to benefit from excellent medium to long-term rental returns and capital growth. Please see our property for sale in Brazil page to see our properties. To get an idea of going rental rates, please see our Brazil holiday rentals section.