A bidding launch for the modern urbanisation of Rio de Janeiro city – ‘Morar Carioca’ – was announced at the Brazilian Institute of Architecture (IAB) on Friday.  According to coordinator and spokeswoman for the project Sonia Lopes: ‘the programme marks a historic step for the future of the city and looks certain to change the face of the property market for the better.’

‘Morar Carioca’ can be broadly translated to mean ‘to live as a Carioca’ (a Carioca is an inhabitant of Rio de Janeiro state) and was hailed at the press conference – hosted by senior members of the IAB as well as the Rio de Janeiro metropolitan government  –  as a ‘new and monumental reality’ .  With an earmarked budget of R$ 7.949 billion and completion date for 2020, several regions of the city will be given a completely new face lift by Brazil’s leading architectural companies which will involve modernised housing, infrastructural improvements and a range of other essential facilities.

When asked about the future of international property investment in Brazil’s second largest city, Lopes commented: ‘there are a number of regions of the city which many property buyers do not go near – mainly because of their proximity to an area which is degraded.  It is our belief that the ‘Morar Carioca’ will help keep the market for real estate strong whilst also creating new areas of opportunity.’

On the property market, Lopes further commented: ‘whilst Rio de Janeiro has taken a successful lead in the implementation of the Minha Casa, Minha Vida [My House, My Life] programme, the Morar Carioca will serve to complement the growth of much needed social housing in the city as well as act as a benchmark for other regions of the country with similar issues.’

As possessing some of the most highly valued real estate in Latin America, agents and specialists are also predicting the programme to further reinforce the market.  According to Fabricio Negri, an independent real estate broker: ‘some neighbourhoods in Rio have doubled in price in the last couple of years due to restricted supply as well as announcements such as the Olympic Games 2016’. 

An apartment sold through the Basi Imóvel brokerage in the Copacabana region for R$140,000 in September 2009 was recently put back on the market with an asking price of R$ 285,000.  Senior Broker Roberto Pimento commented: ‘my international clients have made significant money, especially those that were smart enough to buy before the Olympics announcement.  There are some parts of Copacabana where prices are very low which I have never recommended.  It is certain that the prices of these units will catch up as a result of ‘Morar Carioca’ and I am already beginning to see increased interest.’

Ruben Selvanayagam (Brazilian Property Expert)

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