Why are foreigners buying so many properties in Brazil

Brazil "being in fashion" is already having an impact on the country's real estate market. Regions such as the southern zone of Rio de Janeiro and the coast of Santa Catarina have recorded robust growth in property searches by foreigners in recent years.

The interest goes beyond a mere search for a place to stay and has been viewed by many buyers as an investment. However, the phenomenon has also generated unwanted side effects, helping to fuel rising rental prices, which is likely to increase pressure for regulation.

In 2025, Brazil recorded a record 9.2 million foreign visitors. The first five months of 2026 have already totaled 4.9 million.

At the same time, there has been a growing interest in extended stays in the country, especially since the pandemic.

In cities such as Rio de Janeiro and Florianópolis, the period was marked by increased property searches by professionals working remotely and so-called digital nomads. In Rio's case, the city government even launched a program in 2021 aimed at attracting this type of professional.

"The sales advances are identified mainly in newly launched compact properties. In Ipanema and Leblon, research shows that 30% of these units were sold to foreigners," says Claudio Hermolin, president of Sinduscon (the Civil Construction Industry Union) in the state of Rio de Janeiro.

The regional director of international relations at Creci (the Regional Council of Real Estate Agents) in Santa Catarina, Marco Aurélio Lievore, noted that, according to a survey by a real estate agency in Florianópolis, 83% of sales were to Argentine clients seeking off-plan apartments.

"The developments most sought after are mostly studios. Many foreigners spend their holidays here and then come looking for a place to live or invest," he said.

Among the nationalities, Americans and Argentines stand out as leading investors. Europeans from a number of countries, such as France and Switzerland, also appear among the main buyers, while there is also a recorded and growing interest from citizens of the United Arab Emirates.

Attractive in the global market

Platforms have also made the idea of buying property in another country and earning income remotely more appealing. In addition, companies have been focusing on offering services to foreign clients, such as property management.

Lobie, a company specializing in this area, reports that the share of foreigners in its portfolio grew from around 2% to 18% in three years. Today, the company manages approximately 1,620 studios belonging to investors from outside Brazil.

"The advantage of this type of property for the foreign buyer is the city's appeal: they can use it during holiday periods and major events, and when not in use by the buyer themselves, it is a highly sought-after property," Hermolin noted. "The income generated certainly covers maintenance costs and leaves some profit," he added.

Among the advantages highlighted by Lievore are also exchange rate factors.

In countries such as Argentina, properties are typically negotiated in dollars, making real-denominated transactions in Brazil more attractive. Furthermore, the director points to the great appreciation potential of the Brazilian market, especially when compared to more saturated coastal regions elsewhere in the world, such as Miami in the United States and the Algarve in Portugal.

There is also the ease of bureaucratic processes compared to other countries. "Brazil is a country where it's easy to obtain residency, which is something that helps a great deal," points out Lievore. In the case of Santa Catarina, he highlights a recent flow of Russians, which intensified after the war in Ukraine, with the specific aim of obtaining a Brazilian passport.

A resolution from the CNIg (National Immigration Council) allows foreigners who purchase real estate in Brazil to apply for a residency permit. Individuals must purchase a property with a minimum value of R$1 million using their own funds from external sources.

Airbnb on the rise

The Brazilian market is already the third largest in the world in terms of Airbnb listings, behind only the United States and France, but with one of the fastest growth rates in recent years.

Since 2022, cities such as Rio de Janeiro and Florianópolis have more than doubled their number of Airbnb listings. In Rio's case, the AirDNA platform records more than 60,000 listings, while the Santa Catarina capital has 36,000. By comparison, Barcelona — where the modality will be banned from 2028 onwards due to its negative effects on the local real estate market — has 26,000 listings.

"Brazil has been recording growth in listings above the rest of the world," summarizes Sofia Morais de Sousa, an account executive at AirDNA. In addition to the cities already mentioned, São Paulo also stands out in absolute numbers, with more than 61,000 listings.

Cities along the Santa Catarina coast display comparatively more robust figures. AirDNA records more than 10,000 listings in Bombinhas, in the state of Santa Catarina, which has a population of approximately 25,000 inhabitants.

In a survey published this year, the Inside Airbnb platform ranked the city at the top of the listing concentration ranking in Brazil, with 210.3 per km². Next comes Balneário Camboriú, with 138.8 per km² and more than 10,000 active listings.

In this regard, the region has also been making a name for itself through luxury launches, which are another draw for foreigners. According to the developer of Senna Tower, a project planned to be the tallest residential building in the world, 16% of apartments already sold went to foreigners.

There is a certain shift in the profile of tourists in the country. In 2021, AirDNA recorded fewer than 10% of foreigners as guests in Brazil. Over the past year, that figure exceeded 20%. Even so, it remains quite different from Europe, where the domestic market tends to be less significant. In Spain's case, 80% of guests on the platform are foreigners, while in Germany that percentage stands at 45%.

Pressure for regulation

Around the world, the effects of the rise of short-term rentals have been accompanied by regulatory pressure. Beyond the negative impact on long-term rental prices for local residents, neighbors frequently raise concerns about changes to the condominium environment, including guests who fail to comply with community rules.

In May, the STJ (Superior Court of Justice) ruled that the rental of residential properties in condominiums for short-term stays requires authorization at a general assembly with the approval of at least two-thirds of the unit owners.

For their part, the measure is not seen as sufficient to change the scenario of housing market pressure. Residents are already pointing to increases in rental costs in certain cities, such as Florianópolis, which saw a 9% rise over the past year. "It is the moment to understand what is happening, and the pressure on rents changes that perception," says Aline Cruviel, director of research and community at Inside Airbnb.

"The general discourse is that it is an opportunity for extra income for property owners, but in practice it is a restricted group that manages to generate income, while everyone else ends up paying the costs through higher rents," she notes. Cruviel also highlights foreign companies that have identified Latin America's market as an investment opportunity.

One such case is the multinational Blueground, which advertises more than 20,000 properties around the world. In Brazil, the company acquired Tabas in 2023, a platform offering short-term rentals aimed primarily at foreigners in cities such as Rio de Janeiro and São Paulo.

In Cruviel's assessment, "there is a stance among authorities of attracting investment, but without much evaluation of the other side and the consequences of that."

"The trend is toward regulations, especially when rents start to rise," says Morais de Sousa. Around the world, measures such as limiting the number of properties available for short-term rental in certain areas are being adopted.

In New York, some regulations aim to limit the concentration of many listings under the same hosts, something that is also gaining ground in Brazil. Seazone, a company that operates as one of the largest Airbnb hosts in the country, states that it manages more than 3,600 properties.

On the side of purchases by foreigners, Canada banned the acquisition of properties by citizens of other nationalities for two years in 2023, a measure that was renewed in 2025 and is expected to remain in force until 2027. "For years, foreign capital has been entering Canada to purchase residential properties, raising concerns about housing affordability," the government argued.

In a similar vein, Spain is considering restrictions that, in these cases, would apply to citizens from outside the European Union. One proposal is the imposition of taxes of up to 100% on such transactions. In Portugal, the so-called "golden visa" for foreigners who purchased property in the country was in force for years with the aim of opening pathways to residency; however, the program was curtailed in 2023 due to pressures in the housing market.