How São Paulo State Seduces Homebuyers Seeking Exclusive, Rural Real Estate

Bloomberg Línea — Some 100 kilometers from the city of São Paulo, high-end condominiums attract a clientele seeking to disconnect from the city and get closer to nature, with amenities ranging from golf courses, spas, equestrian facilities and even a heliport for easy access to the busy Faria Lima Avenue, São Paulo’s financial center.

But this luxury comes at a price, with homes costing up to 300 million reais ($61.2 million) and land costing up to 5,000 reais ($1,020) per square meter.

A study by MBRAS, a real estate company specializing in high-end properties, and obtained exclusively by Bloomberg Linea, maps the five most expensive luxury condominiums in the interior of the state of São Paulo.

Located up to an hour and a half away from the capital, in towns such as Porto Feliz, Itupeva, Bragança Paulista and Itu, these refuges gained prominence during the pandemic, when social isolation measures led to an increase in remote working and the search for larger spaces, close to nature, with privacy and security.

“Interest rates have a very strong link with real estate. When money is not worth much, people go out to spend, to consume,” says Lucas Melo, executive director of MBRAS.

In 2020, in the midst of the pandemic stimulus measures, Brazil’s interest rate (Selic) reached a historic low of 2% per annum. In addition to making credit cheaper, this contributed to the diversification of investors’ portfolios, who began to look for more profitable assets beyond fixed income, such as equity products and even real estate.

“Post-pandemic there is no crazy consumer rush, but [real estate] prices are holding up. Construction costs have also gone up, so that’s holding us back,” Melo says.

The National Construction Cost Index - National Availability (INCC-DI), which measures the evolution of construction costs and is typically used in real estate financing contracts, is up 2.95% in the year to October.

As of September 2023, the cumulative percentage for the year was 2.74%, up from 2.50% in August.

According to Melo, most of the buyers of these properties, around 70%, are from São Paulo, while the rest are buyers from Mato Grosso, Belo Horizonte and Rio de Janeiro.

They are mostly families with more than one child or retirees who buy houses in condominiums as second homes. They are looking for a refuge near São Paulo to disconnect from the metropolis and be closer to nature, but with security, says Melo.

“Some of these condominiums are also becoming permanent homes. Boa Vista, for example, made the Boa Vista Village, which will have a shopping center, school and hospital,” he says.

Here are five of the most expensive luxury condominiums in the interior of the state of São Paulo, in reverse order:

5. Boa Vista Village

Following the success of Fazenda Boa Vista, the Boa Vista Village initiative was born. Located in Porto Feliz, the development has an area of more than two million square meters, an 18-hole golf course, a tennis center that hosts international tournaments, a spa, a sports club, an equestrian club, an ecological center and a small farm.

The condominium also has an artificial beach designed for surfing, with “waterfront” buildings whose floors cost up to 30 million reais ($6.1 million), according to MBRAS. Daytime use of the space can cost up to 2,000 reais ($408).

One of the condominium differentials, according to Melo, are the smaller plots, up to 1,500 square meters, which cost between 2,500 reais ($510) and 3,000 reais ($612) per square meter.

4. Terras de São José

Inspired by developments abroad such as Boca Raton and Palm Beach in Florida, Naples in Italy and southern Spain, Terras de São José was built in 1974 on an area of 4.2 million square meters.

The partners of the Senpar real estate company, seeking to diversify their business beyond road construction, decided to bring to Brazil the first gated community with water sports and other activities such as tennis, golf and horseback riding.

The development has a riding arena and heliport and, according to MBRAS, has minimum plots of 2,000 square meters worth up to 1,900 reais ($387) per square meter, in addition to properties already built worth 45 million reais ($9.2 million).

3. Fazenda da Grama

Formerly a family property, Fazenda da Grama started with family friends as clients. Then came the friends of those families and today the place already has several occupied houses in the condominium, which is located in Itupeva.

With land starting at 2,000 square meters and a cost of about 2,000 reais ($408) per square meter, it has properties selling for about 50 million reais ($10.2 million), according to MBRAS.

The condominium offers a range of facilities, from a variety of sports (such as fishing, beach tennis, beach volleyball and non-motorized water sports) to massage and hairdressing services.

There is also a 150,000-square-meter lakeside social event space and a guest house with 12 suites for the exclusive use of the owners and their guests.

2. Quinta da Baroneza

Considered one of the largest country condominiums in the country, Quinta da Baroneza has plots starting at 3,000 square meters, with a value of up to 3,000 reais ($612) per square meter and houses already built valued at up to 150 million reais ($30.6 million).

Located in Bragança Paulista, in the interior of São Paulo, the condominium has an equestrian complex, sports center, heliport, medical center, stores, supermarkets, hairdresser, as well as an exclusive golf club for members, with a course designed by Dan Blankenship.

1. Fazenda Boa Vista

Located in Porto Feliz, one hour from the city of São Paulo, Fazenda Boa Vista has an area of 12 million square meters and homes valued at up to 300 million reais ($61.2 million).

One of the condominiums that has gained most notoriety in recent years, the property offers amenities such as an equestrian center and two 18-hole golf courses designed by Arnold Palmer and Randall Thompson.

The presence of an integrated heliport facilitates access, notes MBRAS, allowing for a 15-minute drive from Faria Lima. The development is also close to the Catarina Executive International Airport.

According to the real estate company, the condominium has plots starting at 3,000 square meters, at a cost of up to 5,000 reais ($1,020) per square meter.