Investing in an apartment under construction in Brazil

Apartments under construction in Alagoas, Brazil, offer a unique real estate investment opportunity with advantageous prices, interest-free payment over several years, and appreciation in both purchase price and the Brazilian Real currency.

Pay in installments (interest-free)

Many real estate developers in Brazil offer interest-free installment payment plans. Let's take the Loungeproject, for example, where an apartment is available for €78,000. With an initial down payment of only €3,650, followed by monthly payments of €475 for 36 months, along with annual payments of €1,825 for three years, the remaining balance of €52,325 is settled at the end of construction. This financing option makes the investment much more affordable for many potential buyers.​

It's worth noting that the apartment only becomes fully yours at the end of the construction. During the construction phase, it remains under the name of the real estate developer, but it is exclusively reserved for you. Therefore, no one else can acquire it.

There is a variety of apartments available within the same complex, with different sizes and prices. Some developers even offer the option to choose the duration of monthly payments according to your preferences.

This flexibility extends to all the real estate projects currently under construction listed on our website. You can explore these options below and contact us to obtain detailed price grids. 

Price adjustments and interest

Even though the payments do not include traditional interest like those from banks, it is important to note that there is an annual price adjustment of about 4% per year. This adjustment is normal and comparable to inflation. Until the delivery of the building, the payments are adjusted monthly and cumulatively according to the INCC (National Index of Civil Construction). 

After the delivery of the building, the payments are adjusted according to the IGPM (General Market Price Index), and it is only at this point that you will start paying a cumulative interest of 1% per month. To avoid these interests after the construction is completed, simply sell the apartment at the time of delivery. The property will have significantly increased in value, thus guaranteeing you a profit and avoiding the interest.

First Appreciation: The Property

In addition to its advantageous cost and flexible payment terms, investing in an apartment under construction in Alagoas also offers the benefit of property appreciation. Indeed, real estate tends to appreciate significantly during construction. An apartment purchased at the beginning of a project is often resold for twice its price at the end of construction. This translates to an excellent return on investment for buyers.

Second appreciation: the exchange rate

Another advantage to consider is the appreciation of the Brazilian currency, the real. Currently, the real is at a relatively low level compared to other foreign currencies. However, over time, the real tends to strengthen. This means that not only does your real estate property appreciate over time, but also the currency in which it is denominated. Thus, by investing in an apartment under construction in Maceió, you benefit from a double appreciation: that of your property and that of the currency.

Exemple:

👉 You're investing in a property worth 443,461 BRL today, which is equivalent to 80,000€ with the current exchange rate (April 30, 2024): 1€ = 5.54 BRL.

👉 Three years later, your property could be worth 665,191 BRL, which translates to 120,000€ because the apartment has appreciated during its construction, thanks to the growth of Alagoas. 

👉 But if we assume that the value of the real continued to increase during these years and we imagine an exchange rate of 1€ = 4.50 BRL, your property is actually worth 147 820€

Your property, and therefore your money, appreciates in value twice. The key is to bet that Brazil will continue to grow in the years to come.

Opening a bank account in Brazil

This is beneficial for monthly payments (whether for purchasing the property or for maintenance costs of your apartment) and for receiving rent if you prefer it deposited into a Brazilian account.

It is possible to open a Reais account to facilitate monthly payments or rent collection, even without a Brazilian national registry, primarily through Santander Bank. The opening of this account is included in our services.

More info about the opening of a bank account in Brazil

With advantageous prices and strong appreciation of property and currency, investing in a property under construction in Alagoas is an attractive option for investors worldwide. Feel free to contact us to learn more.