Santa Catarina has emerged as a pivotal force in the national real estate sector, marked by a substantial shift in the appreciation geography, as reported by various sources, including Veja magazine and NSC Total. This shift has been characterised by a noticeable migration of the real estate appreciation curve from the Southeast to the South of the country, specifically to Santa Catarina. Notably, the FipeZAP Index, Brazil’s nationwide price index tracking residential and commercial real estate prices, has monitored and documented the dynamic growth in this region, revealing key insights into the sector’s trends and developments.
Growth and Appreciation: Balneário Camboriú, a premier city in Santa Catarina, has witnessed a remarkable upsurge, with a 22.4% surge in property values over the past twelve months. This surge has firmly established its position as a national leader in real estate appreciation, with the residential square meter currently valued at an impressive 12,335 reais, surpassing prices observed in major capitals such as São Paulo and Rio de Janeiro. It’s important to note that this figure represents the average, and beachfront apartments can command significantly higher prices, somewhere in the region of R$60,000 per m2. Notably, the prominent developer FG Empreendimentos, the largest in the southern region of Brazil, has experienced an average annual increase of 30.53% in the value of their oceanfront properties since 2020. Additionally, other cities experiencing substantial growth this year include São José (20.2%), Itapema (19.3%), Itajaí (15.4%), and Blumenau (14.3%).
Regional Appeal: The appeal of Santa Catarina’s real estate market is attributed to a combination of factors such as robust security indices, pristine beaches, well-maintained infrastructure, and a focus on preserving the state’s natural beauty and sustainability. Florianópolis, the state capital, has particularly shone in this regard, boasting quality of life indices akin to those of European capitals and ranking among the top five capitals with the highest square meter prices in Brazil.
Luxury and Exclusivity: The real estate landscape in Santa Catarina is dominated by luxury and ultra-luxury projects, exemplified by the opulent developments in Jurerê Internacional, where the square meter is quoted at a staggering 50,000 reais, comparable to elite neighbourhoods in major metropolises such as São Paulo and Rio de Janeiro.
Expansion and Diversification: With less room for expansion in established cities like Florianópolis and Balneário Camboriú, the real estate market is now exploring new frontiers, such as the Viva Park development in Porto Belo. This development, comprising an array of high-end properties, symbolises the state’s ambition to sustain the unprecedented growth and expansion of its real estate market.
What Returns are Possible?: The environment has been favourable for property investors, who have seen exceptional capital appreciation. One of the most lucrative real estate investments has been in projects at the launch phase, with some seeing a surge of 329% in value during the construction phase. Rental properties in Santa Catarina yield returns between 0.5% to 1% of the property’s value, with beach neighbourhoods having tremendous potential for lucrative short-term rentals, particularly during the high tourist season.
Implications and Future Outlook:
The notable surge in Santa Catarina’s real estate market has garnered significant attention nationally, with immense untapped potential internationally. Driven by a strong internal economy, the market presents promising opportunities for sustainable development, positioning Santa Catarina as a lucrative destination for real estate investors and homeowners alike. As the market continues to evolve, it is expected to create new opportunities for innovation, development, and economic growth, solidifying the state’s status as a powerhouse in the Brazilian real estate landscape.
1. Veja magazine – “The State That Has Become a Phenomenon in the National Real Estate Market”
2. NSC Total – “Real Estate Boom in Santa Catarina Is National Highlight With a New ‘Appreciation Geography'”
3. Tresas – “Real Estate Market in Santa Catarina”