Pearl Of Brazil: How Santa Catarina Commanded The Country's Hottest Residential Markets

2025-09-02 08:02:42

(MENAFN- The Rio Times) The FipeZAP Index reported a 0.50% rise in average residential sale prices in August 2025, surpassing both the IGP-M at 0.36% and the IPCA-15 at –0.14%.

The national average price reached R$ 9,423 per square meter, up from R$ 9,369 in July. Over the past 12 months, the index climbed 7.04%, outstripping official inflation of 5.10%.

This sustained growth reflects robust buyer interest and limited supply. Three-bedroom units led the gains with a 0.66% increase, while two-bedroom properties rose 0.42%. Buyers chasing space for home offices and families drove that preference.

Prices rose in 50 of 56 monitored cities and in 19 of 22 state capitals. Only Campo Grande and Brasília saw declines of 0.70% and 0.62% respectively, while Manaus held steady.

Betim recorded the largest jump at 1.79%, followed by Praia Grande and Vila Velha at 1.32%. Fortaleza and Maceió saw gains of 1.31% and 1.25%.

Four of the top five priciest markets sit in Santa Catarina, earning it the title“Pearl of Brazil.” Balneário Camboriú led with R$ 14,839 per square meter, Itapema followed at R$ 14,674, Florianópolis reached R$ 12,519, and Itajaí stood at R$ 12,639.

Vitória in Espírito Santo rounded out the list at R$ 14,117, leaving even São Paulo and Rio de Janeiro behind. High mortgage rates near 14.75% have not cooled demand. Investors view property as an inflation hedge and store of value.

Yet rising costs erode affordable options for first-time buyers and renters. Affordability pressures could dampen future growth if incomes fail to keep pace.

Regional dynamics shape local markets. Industrial hubs and port cities benefited from logistics growth and corporate relocations. Coastal destinations attracted absentee buyers seeking vacation or rental homes.

In inland capitals, modest gains reflected slower wage growth and tighter lending for lower-income segments. Home price trends offer a window into Brazil's broader economic health.

Steady gains signal sustained consumer confidence, despite high interest rates. Yet widening gaps between housing costs and wages could strain household budgets and amplify social divides.

Policymakers may face pressure to expand affordable housing programs or adjust credit terms for vulnerable buyers. Brazil 's residential market remains buoyant, but risks loom.

If salary growth lags behind housing inflation, demand could falter and price corrections emerge. For now, sellers enjoy strong returns, and buyers brace for ongoing cost increases.

This outlook helps families and investors plan ahead and spot emerging opportunities or warning signs in Brazil's evolving property landscape.

#
City
State
Average Price (R$/m2)
Monthly Change Aug/2025 (%)

1	Balneário Camboriú	SC	14,839	–0.20
2	Itapema	SC	14,674	0.01
3	Vitória	ES	14,117	0.62
4	Itajaí	SC	12,639	0.19
5	Florianópolis	SC	12,519	0.79
6	São Paulo	SP	11,721	0.43
7	Barueri	SP	11,622	1.22
8	Curitiba	PR	11,381	0.83
9	Rio de Janeiro	RJ	10,668	0.38
10	Belo Horizonte	MG	10,341	0.82
11	Vila Velha	ES	9,832	1.32
12	Maceió	AL	9,653	1.25
13	Brasília	DF	9,436	–0.62
14	São Caetano do Sul	SP	9,165	1.15
15	São José dos Campos	SP	8,756	0.98
16	Fortaleza	CE	8,695	1.31
17	São José	SC	8,641	1.17
18	Recife	PE	8,350	0.68
19	São Luís	MA	8,347	0.97
20	Osasco	SP	8,147	0.71
21	Belém	PA	8,140	1.15
22	Goiânia	GO	7,958	0.60
23	Joinville	SC	7,837	1.10
24	Santos	SP	7,806	0.92
25	João Pessoa	PB	7,743	1.20
26	Salvador	BA	7,715	0.89
27	Santo André	SP	7,472	0.66
28	Blumenau	SC	7,451	0.62
29	Porto Alegre	RS	7,434	0.91
30	Niterói	RJ	7,426	0.77
31	Campinas	SP	7,262	0.57
32	Manaus	AM	7,045	0.00
33	Guarulhos	SP	7,021	0.06
34	São Bernardo do Campo	SP	6,821	0.86
35	Cuiabá	MT	6,704	0.29
36	Diadema	SP	6,554	0.12
37	Praia Grande	SP	6,494	1.32
38	Guarujá	SP	6,327	0.28
39	Campo Grande	MS	6,304	–0.70
40	Caxias do Sul	RS	6,113	0.22
41	Natal	RN	5,972	0.47
42	Canoas	RS	5,818	0.04
43	São José dos Pinhais	PR	5,722	0.61
44	Jaboatão dos Guararapes	PE	5,703	0.12
45	Teresina	PI	5,698	0.59
46	São José do Rio Preto	SP	5,656	0.57
47	Contagem	MG	5,619	0.64
48	Londrina	PR	5,510	0.92
49	Novo Hamburgo	RS	5,329	0.73
50	Aracaju	SE	5,238	1.15
51	Santa Maria	RS	5,093	0.37
52	São Leopoldo	RS	5,046	0.00
53	Ribeirão Preto	SP	5,043	0.04
54	São Vicente	SP	4,613	0.14
55	Betim	MG	4,609	1.79
56	Pelotas	RS	4,410	–0.11

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