The real estate market is considered one of the biggest pillars of the economy today. But, before deciding to invest, it is essential to know how real estate appreciation is progressing in Rio de Janeiro in 2023. Its constant growth over the decades in the capital of Rio de Janeiro is evident and attracts many interested parties.

The city is coveted for housing due to its neighborhoods, which invest in a diverse commercial infrastructure, offer a high quality of life and greater security for its residents, and, above all, have beautiful natural landscapes.

The neighborhoods cover charming coastal, urban, mountainous regions and areas with environmental preservation, views that please the most varied preferences.

The wide diversity of its territory, added to the tourist attractions that welcome visitors from all over the world, make Rio de Janeiro a favorite city for housing and investments.

An overview of how the Rio real estate market developed in 2022 can provide an excellent basis for establishing real estate investment goals for 2023.

Overview of Rio’s real estate market

The panorama of the real estate market in Rio de Janeiro, which is carried out by the Rio Housing Union (Secovi), shows that the number of residential sales offers increased approximately 16% from 2022 to 2023, comparing the values from May 2022 with the the same period of the following year.

There was also an increase in the price per square meter in the Central Zone and Barra da Tijuca and surrounding areas, which recorded growth of around 3.5% and 2.5%, respectively. The Barra da Tijuca region still stands out in terms of sales volume, according to open data from Rio de Janeiro City Hall.

According to these data, Barra was the champion in property sales in Rio de Janeiro last year, with almost 3,500 real estate transactions. Furthermore, Recreio dos Bandeirantes, a neighbor of the neighborhood, came in second place in the ranking, registering close to 2,800 transactions.

The South Zone, despite not having recorded an increase in the value of its square meter during 2022, continues to be among the most valued regions of Rio.

According to the vice-president of Secovi Rio, Leonardo Schneider, in an interview with O Globo, the South Zone presents the biggest reference in the real estate segment, due to its coastal neighborhoods, with parks, plenty of shops and shopping malls, among other attractions.

Real Estate Valuation in Rio de Janeiro

In other words, the privileged location of Rio’s neighborhoods increases their value, due to the greater demand for properties in their regions.

At the end of 2022, a survey by Loft — a real estate startup — identified Leblon as the neighborhood with the most expensive square meter in Rio de Janeiro. This is not surprising, as in recent years the neighborhood has remained firmly in first place in the price rankings.

Currently, the average value per square meter in Leblon reaches almost R$17 thousand reais, with large and sophisticated projects located in its infrastructure.

Other neighborhoods in the South Zone also occupy the first places among the highest values. Ipanema, Lagoa, Jardim Botânico, Gávea, Urca, Botafogo and Humaitá, along with Leblon, are among the neighborhoods with the highest cost per square meter in Rio de Janeiro.

However, in terms of appreciation, the highlight is once again Barra da Tijuca and its surroundings. A survey by Valor Econômico showed that Barra and Recreio dos Bandeirantes were the regions with the highest appreciation in value last year.

The price of properties in Barra grew by 8.8% and the value in Recreio by 8.7% in 2022, with the square meter costing R$11.8 thousand and R$7.5 thousand, respectively. Located in the West Zone, the neighborhoods boast planned infrastructure and a variety of establishments, services and security.

In the first quarter of 2023, the FipZap+ Index shows that Barra da Tijuca and Recreio dos Bandeirantes remain valued, but lost positions to Ipanema, which is the current neighborhood with the highest appreciation, with growth of approximately 9% in recent months .

One of the reasons that led to the high appreciation of these regions is the available properties, with well-located options, close to the beach and shops, in addition to having new plants and large square footages.

Certainly, the panorama of the real estate market in Rio de Janeiro is very promising, making all real estate investments in regions with high appreciation worthwhile.

Top 3 neighborhoods with the highest property appreciation in Rio de Janeiro

One of the main indicators that reinforce the wealth concentrated in certain regions of Rio de Janeiro is the value per square meter. These are the Top 3 most noble and valued neighborhoods in Rio de Janeiro.

R$ 16,928 / m²
Leblon is a centuries-old and charming neighborhood that underwent intense urbanization in the 20th century and which, even today, has some of the most valued properties in the city, with luxurious apartments and penthouses.

R$ 15,328 / m²
It is a charming neighborhood, which concentrates Rio’s luxury commerce of several national and international brands, especially on Garcia D’Ávila, Maria Quitéria and Visconde de Pirajá streets.

R$ 15,249 / m²
Lagoa is a neighborhood with a notable gastronomic hub. Furthermore, environmental preservation areas and parks are important attractions in this region, which is very close to Copacabana, Leblon and Ipanema.

How to invest in the real estate market

With the high growth of the real estate market recorded in 2022, property values are expected to develop more moderately during 2023, but the market remains heated and the Real Estate sector in Brazil presents a wide range of opportunities for investors, mainly in the Rio market.

As it is one of the safest investments today, the number of people choosing to invest in the real estate segment has grown considerably, whether to guarantee passive income or to anticipate retirement.

An option for those who want to start investing in the real estate market and take advantage of the rise in property values in Rio de Janeiro is through real estate funds (FII). This is an excellent alternative for beginner investors without large capital.

However, there is another investment option that goes beyond financial investments in the real estate sector. Obtaining physical properties can also result in high profits, if it is possible to rent or sell them later for a higher price. The current scenario is ideal for this, since with the increase in the Selic rate, it is expected that the value of rent will show a significant increase.

For example, in Rio de Janeiro, the Leblon and Barra da Tijuca neighborhoods, mentioned above, and others such as Ipanema, Lagoa and Gávea show an impressive increase in appreciation and, consequently, in rental prices. Whether for sale or rental, the price may vary according to location, property conservation and other important characteristics.

However, before opting for a type of investment, precautions must be taken, such as carefully analyzing the risks involved in each type and studying the main ways to invest your money safely.

And, to avoid the risk of taking a loss if you decide to invest in shares, prioritize hiring a reliable stock broker. The help of qualified professionals in the area can be essential to achieving your goals.

Therefore, the appreciation of properties in Rio de Janeiro in 2023 certainly presents a positive and favorable outlook, especially for investing in the sector, whether through the acquisition of shares or physical properties. Those interested in obtaining high-standard properties in the valued regions of the Marvelous City can count on INVEXO, a real estate agency specializing in luxury properties in Rio de Janeiro.