Brazil: the Rise of a Luxury Sector Fuelled by its Own Fortunes

This demand is not limited to prestigious flats in São Paulo or penthouses in Ipanema, Rio. The sought-after property is now also a villa with its feet in the sand, a residence integrated into a five-star hotel, or a house situated near a kitesurfing spot accessible by private jet. We are thus witnessing a ‘tropicalisation’ of branded residences that is redrawing the country’s map.

Trancoso, in the state of Bahia, is the most successful example of this. The village, which over the past twenty years has become one of the favourite destinations for wealthy Brazilians and international high-net-worth individuals, has benefited from a scarcity driven by environmental constraints and the absence of multi-storey buildings.

Before 2020, it was still possible to find plots of land there for less than one million reais. Today, they generally start at 3.5 million, according to local professionals interviewed by Forbes Brasil.

In the Reserva Trancoso complex – developed notably by the partnership between REDCO and Bahia Beach, with the Brazilian group Fasano acting as hotel operator – all 23 Estâncias Fasano have been sold, and some villas in the development have seen their value double or triple. The last remaining houses, designed by Bernardes Arquitetura, start at around 25.5 million reais. For rentals, a seven-suite property can fetch up to 35,000 reais – around 5,500 euros – per day in high season.

The concept is now being replicated elsewhere: combining scarce land, architecture, catering, wellness, concierge services and a hotel brand to transform a second home into a viable luxury product.

Angra dos Reis, south of Rio, already offers this hybrid model centred on the Fasano complex and the FRAD.E estate. The five-star hotel has 60 rooms and a 2,000 m² spa, whilst villas and residences extend the hotel experience into private accommodation. São Paulo is following the same urban model with Rosewood and Cidade Matarazzo, a project led by the French entrepreneur Alexandre Allard, with an initial investment of nearly 3 billion reais.

According to Cibele Maciet, founder of Cibele Maciet Communication – a Paris-based agency specialising in international press relations for the luxury hospitality and lifestyle sectors between Europe and Latin America – “we are witnessing an evolution in the very definition of luxury in Brazil. Guests are increasingly less interested in simply a brand or the traditional hallmarks of a five-star hotel. They are seeking access to a place, privacy, nature, architecture that blends into its surroundings, local cuisine and, above all, an extremely personalised service. This is what’s giving small independent establishments, top-of-the-range pousadas, private villas and lodges a real foothold today, as they can compete with the major international chains without trying to replicate their model.” Among the Brazilian players to watch, she cites the local chains Emiliano, Nannai, Carmel Hotéis (several properties on the beaches of Ceará), the Txai Resort in Itacaré, UXUA Casa Hotel & Spa in Trancoso – a complex of ultra-luxury holiday homes restored using local materials and styles – and the Barracuda in Itacaré, the latter now under the Hilton umbrella.