Posted by: davidgarnerconsulting | September 14, 2009

Rental Yield in Sao Paulo and Rio de Janeiro

Rental Yields for Property in Sao Paulo and Rio de Janeiro

By David Garner, Managing Partner, David Garner Consulting

CLICK HERE Download your FREE GUIDE to the BRAZIL PROPERTY MARKET

Prices for property in Brazil have been rising steadily, with average prices rising by roughly 100% in the last three years. Yields in Rio de Janeiro and Sao Paolo are moderately good, but certainly not spectacular.

According to my research apartments in Rio de Janeiro accrue an average annual rental yield of 6.52%, which covers a range of properties from 65 square metres to 275 square metres.

In Sao Paulo apartments between 120 and 450 square metres have average yields of around 7.15%. The higher end of the market (Penthouses for example), in Sao Paulo tends to enjoy higher yields of around 7.35%. Though the average Sao Paolo penthouse yield in our sample is just 7.35%, smaller Sao Paolo penthouses can yield over 8%.

CLICK HERE Download your FREE GUIDE to the BRAZIL PROPERTY MARKET

Price to Earnings ratio for property in Sao Paulo, assuming 20% costs 100/(7.15*0.80)=17.5

Rating – Good

Price to Earnings ratio for property in Rio de Janeiro, assuming 20% costs 100/(6.52*0.80)=19.2

Rating – Good

Scale:

1-10 – Excellent

11-15 – Very Good

16-20 – Good

21-25 – Average

26-30 – Poor

30+ – Very Poor

CLICK HERE Download your FREE GUIDE to the BRAZIL PROPERTY MARKET

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