Cheap real estate near Rio's Olympic venues attracts outsiders

SBS World News Radio: In the midst of a political and financial crisis, property prices in Rio de Janeiro hit an all-time low earlier this year. But it is hoped the remnants of the Games will trigger a boom in the city's real-estate market.

Cheap real estate near Rio's Olympic venues attracts outsiders

With sprawling high rises along the Barra Tijuca coastline, an ocean-view apartment is all but guaranteed.

And the prices are dirt cheap after the real-estate market slumped earlier this year.

Leonardo Rodrigues, sales director at one of Rio's biggest firms, Patrimóvel Real Estate, says prices remain well under average even though they have slightly increased.

"Prices in Rio have dropped, and it's practically a buyers' market."

A luxury two-bedroom apartment in a gated complex in Barra costs about $300,000 Australian.

The redevelopment of urban areas surrounding Olympic venues has increased prices in the past few months.

But Leonardo Rodrigues says the budget investment opportunities are attracting the attention of foreign investors.

And the biggest investment opportunity is yet to come.

The Athletes Village has about 4,000 brand new apartments, soon to be vacated.

The high rises will undergo a refurbishment before they are marketed as luxury apartment complexes.

But with the economy still in crisis, estate agents like Leonardo Rodrigues fear it will take some time to sell.

"Our intention was to sell them in two years, but, in the current situation, we foresee it will take 10 years."

The problem is not a lack of demand, but a lack of finance.

Hundreds of thousands of Brazilians live in abject poverty, while those living above the poverty line do all they can to stay there.

Juliana Fernandes is staying with friends while she rents out her own house to tourists.

"I feel very well there, but it's a little bit strange."

And she is not the only one.

Ms Fernandes manages 23 other properties for friends and family.

She says the Olympic tourist trade is enticing many to the rental market for the first time.

"The rate is maybe two or three times the normal rate, so, for 20, 22 days (during) the Olympic season, we can earn some money."

And hopefully after that.

Ms Fernandes says she has also received holiday bookings throughout September and beyond.