Salvador Bahia Real Estate – a realistic future

Salvador is the third biggest city of Brazil and Salvador Bahia Real Estate market is among the hottest real estate markets in the country. With a population of more than two million and a wealth of culture, history and natural beauty real estate in Salvador is really something to look forward to. Salvador still boosts of a sparkling cultural and musical outlook blending African music, art, dance and religion with Indian and Portuguese predominance. Although, Salvador has been largely ignored by the government which resulted in losing it’s once upon a time glittering image but the city still has decent infrastructure with modern facilities like nice airport, shopping malls, multiplexes, concert halls, restaurants, hotels and shops.  Adding to that is the nice weather, carnival that attracts more than five million tourists yearly and warmth extended by the people. The northern part of the city is full of industries and also attracts lot of tourism, thus, should be in the list of favorite places to buy a property in the city while southern part of the city is off beat and comparatively less developed. Places like Vitoria, Porto Seguro, Barra, Ondina, Ilha da Comandatuba and Itapua are some of the sough after places in Salvador Bahia Real Estate market.

Real estate in Salvador Bahia can either be bought through an agent online or direct contact. List of agents located in Salvador can be found in the local yellow pages. But before opting for a particular agent find out the reputation of the agent. Ask the agent to provide the contact numbers of the previous customers and contact them to find the service offered and fees charged. Also ask unhesitatingly about any hidden fees or commissions. Salvador Bahia Real Estate can also be bought directly though the owners or real estate companies when they advertise through newspapers or online or television.

What factors you should consider when buying a real estate in Salvador?

• The safety
• Rental income
• Proximity to the beaches
• Infrastructure
• Rental yield

In Salvador Bahia Real Estate Market the prices of homes depend on various factors such as location, proximity to the beach etc. like a beach property would be really expensive say hundred thousand United States Dollars to a million dollars also compared to a normal property which may vary between thirty to fifty thousand United States Dollars. According to Global Property Guide, an international independent real estate market research firm average price of buying a 538 sq. ft house is 35,000 USD which comes down to 65 USD per sq. ft. The same property gives a rental yield of about 6.85% annually. The average price of renting the same house in Salvador is around 200 USD. It is observed that as the price increases the rental yield decreases going down to as low as 4.66% for a house worth 270,000 USD. But appreciation rates for properties are really good especially for beach properties. You can expect a return of 10% to 20% when you invest in Salvador real estate, which is comparable to other Brazil real estate markets like Rio de Janeiro and Sao Paulo.

One of the high points of buying a real estate property in Salvador Bahia is that it’s a thriving state with one of the highest economic growth rates in the country assuring a full return on your investment. But low points include high rental income tax and inflation, which would offset the returns to some extent. According to Global Property Guide an effective rental tax of up to 25% is charged on monthly rental income of up to12, 000 USD. Typical capital gains tax in the state is about 15%. The transaction fee is relatively low.

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