By Fiona Hurrell, Senior Contributing Reporter
RIO DE JANEIRO, BRAZIL – The price of property in Brazil is always a talking point, particularly in Rio, where good apartments are in short supply and often come with a hefty price tag. In 2011 the average cost per square meter in Rio rose a staggering 34.9 percent, with the coveted neighborhoods of Leblon and Ipanema in Rio’s Zona Sul (South Zone) continuing to command the highest figures.
Unsurprisingly the economic boom of the oil and gas industries, combined with the upcoming sporting events and overall beauty of the city, has seen prices rise at an alarming rate.
Yet more recently, data collected by Agente Imóvel have suggested a cooling off period in terms of property sales in 2012.
Perhaps because of this the investment potential is improving, but with so many obstacles for potential buyers, such as language barriers and regulation, it is important to enlist the help of a professional who knows their way around.
Frederic Cockenpot is the managing director of WhereInRio, a luxury property agency who pride themselves on their commitment to personal service. In order to help clients find their dream property Frederic states “Either you know Rio or not. Finding the right property to buy or rent is not that easy, a good real estate agent has to understand your needs.”
Using their broad knowledge and expertise, the international team at WhereInRio have managed a number of successful sales. Frederic adds “A lot of clients comes to WhereInRio after months of despair saying they’ve visited hundreds of places far from what they wanted because the real estate agent could not understand them.”
Frederic also notes that it is important for prospective buyers to have a clear idea of what they are looking for from the beginning, as this will help them to save time and money.
He explains, “With the current political and economic situation in Rio de Janeiro, there are many areas that offer very good investment opportunities. For foreigners, purchasing overseas it can often be a combination of personal use and investment. The neighborhood you prefer might be not the best for temporary rentals or to get the best return on investment.”
As for the future of the real estate market, Frederic predicts a return to normality as prices begin to indicate a degree of stabilization. In the aftermath of the property boom that started in 2008 and has lasted until recently, he explains, “I think the market had gone mad, and now back to reality. The fact is that after three years of uphill, higher property prices, the average new and used is losing steam. The standard condo now is even better than many I saw last year.”
With the added advantage of massive infrastructure investment leading to the 2014 World Cup and 2016 Olympics, Frederick adds, “Rio de Janeiro is going through an incomparable moment, with major changes that are moving the city in an exceptional manner as one of the most significant investment destinations in the world.”
“The association between the government behavior and city’s strategies for hunting new business, coupled with the vigor of the oil and gas sector and the major sporting events that Rio will host, has all helped create an extremely favorable situation which is particularly true of the real estate sector.” Frederic concludes.
* This is a paid Advertorial for WhereInRio.