While everybody talks about the crisis in Europe and the American employment rates, in Rio de Janeiro we are in the opposite side of a discussion ( and supply and demand law) at least for the niche of furnished apartments in Zona Sul. As we all know, Rio is going through this boom because of the series of mega events, shows, conferences and to find good quality furnished apartment in Zona Sul maybe one of the hardest tasks today, even for the most experienced rental companies in Rio. House hunting became a real “mission impossible” task for many locals and foreigners who need design or nicely done furnished apartments. They simply evaporated and the reason for this phenomenon is the subject of this post in Belavista-Rio Blog.
Below, Leme Executive Apartment Video - A great Option in Zona Sul:
House hunting in Rio de Janeiro, Brazil became a nightmare for everyone working with foreigners in Rio: expats agencies, re-location companies, specialized agencies and real estate consultancy companies, not to mention the corporations that are recruiting these foreigners. The reason for this scenario is a product of a combination of simultaneous situations.
1) Law of supply and demand – There are simply much more people looking for apartments in general in Rio than the construction market could supply, in terms of new launch. One of the reasons is obvious: In Zona Sul, there is nowhere else to construct new buildings. The Zona Sul “area” in Rio is literally built between the mountains and Rio´s shoreline / beaches.
2) Because of Rio´s booming oil industry, Brazil is importing executives because of the lack of specialized marine engineers and naval constructors. In the face of this reality, there is a huge influx of foreigners to fill in the gap of these positions. The consequence is you have an added number of searches for these kinds of apartments.
3) Short time rentals. Many apartment owners in Rio, especially in Copacabana prefer to rent their properties for very short periods, which normally deteriorate the apartment. The net result is that the few apartments “left” sometimes are not up to the standards of executives who naturally want clean, design, sophisticated apartments to stay in, especially if they are moving with their families.
4) Many foreign executives prefer to live or experience “an authentic live of a Carioca”, and that normally means the Zona Sul, (South Zone ) area in Rio. With this, Barra neighborhood which indeed has many new buildings, sometimes is not an option, and therefore limits again the “house hunt” to these few refined apartments at Ipanema, Lagoa, Flamengo, Copacabana, Leblon neighborhoods. Many views Barra as a “Miami” experience since you need a car even to buy your fresh bread, so Barra sometimes is not really preferred by some foreigners, especially Europeans. (The theory is not valid obviously if the company in which the executive was hired has its HQ at Barra. )
5) Finally, some Brazilian who indeed have good properties are resistant to see the opportunities (and advantages) of furnishing an apartment for medium length rentals. Some still think people will not treat their property with care and avoid making investment in quality furniture and finishing. Because of this, new comers to this market have to be educated about how effectively the market works, the ROI, until he finally decides to give in, and elegantly decorate his property (and consequently earn much more…)
Below, another Ipanema Apartment for Rent in Rio in video:
So, to conclude, what you may be experiencing in terms of house hunting in Rio is more than true. The fact is that to find “quality apartments” in Rio you have to spend hours and hours of research, with no guarantee of success. In this case, the best option we suggest is a specialized search, which can try to conciliate wishes & desires with what is in fact available, or scheduled to be available. In any case, don´t give up, because Rio is worth the effort! Cheers!