As promised last week: an update from the real estate market in Rio de Janeiro.
Until september Brazil was completely outside the current market crisis. It took even until Oktober to see a very slight impact on the real estate prices. In the center, the prices had a small 10% dip in price in October. In Ipanema the prices dropped 3,9% in November. From November on prices rose again. Actually, from September until end February prices rose 30,8% in Rio de Janeiro center and 16% in Ipanema. Consider than that inflation is around 5% y/y (2,5% 6 months) and you have your net appreciation.
A 2 bedroom apartment (in Rio a 2 bedroom apartment is max 85m2, you need a 3 bedroom apartment to get to 95-115 m2) comes at an average price of (dived by 3 to get the prices in Euros):
Ipanema: 750.000 R$
Leblon: 860.000 R$
Lagoa: 885.000 R$ (Lagoa topped Leblon and Ipanema, different from 2004)
Jardim Botanico: 740.000 R$
The cheaper areas in zona sul are Botafo and Laranjeiras. Amazingly the average prices in Laranjeiras also rose to 560.000 R$.
I could dedicate an entire blog on the real estate market of Rio de Janeiro, one of the most interesting (and most complex) ones in the world. Drop me a line for more insights.