From the surface, Brazil’s residential real estate market is currently one of the strongest in the world. The nation’s middle class is enjoying an upgrade in lifestyle, and property values have soared over the past ten years. In fact, the major city of Rio rivals New York and Paris in terms of affordability and availability of rental properties.
Many of the properties available in Rio’s most popular and well-known neighborhoods are impressively expensive. The price of a basic apartment with little to no view costs as much in Brazil’s elite neighborhoods as it does in the prime sectors of New York, London, and Paris.
Many of those living in the prime neighborhoods of Rio are international visitors. Executives from the biggest industries, including oil, cosmetics, and banks all own property in the area along the beach of the ocean.
While one might think that only the premier areas of Rio would be unattainable. However, rental prices have become so exorbitantly high that they are grossly unaffordable for many citizens. Even properties with bedrooms too small for beds are commanding obscene prices.
The market as a whole is booming unlike anyone has even seen in the past. However, economists are starting to question whether or not the growth is sustainable. Some believe that Brazil may face a crash that is similar to or worse than that experienced by the United States five to six years ago. Many believe that the market will not stand the test of time, and may plummet following the 2016 Olympics.
