Rio’s First Multifamily Developments Could Benefit from Controversial Short-Term Rental Law

In 2026, Rio de Janeiro will welcome its first multifamily developments—residential real estate assets designed for income generation. Currently under renovation, the A Noite and Glória buildings, both owned by Brookfield, are undergoing retrofits to cater to this emerging market segment, which has already proven profitable and is expanding across Brazil.

As a relatively new market in Brazil, the multifamily segment still faces uncertainties—especially from a legal standpoint. Multifamily leases can be divided into three categories: short, mid, and long stays. Mid- and long-stay rentals follow the traditional leasing model and are protected under Brazil’s Tenancy Law. However, a new bill aims to regulate short-term rentals in downtown Rio de Janeiro, which could directly impact short-stay leasing.

Authored by councilor Salvino Oliveira (PSD), law project (PL) 107/2025 aims to regulate short-term rental services and hosting platforms. The controversial proposal was debated in March, drawing attention from property owners, the hospitality industry, and other stakeholders.

• Read more: Multifamily Expands to Brasília with Luggo’s First Project in the City; Sector Surpasses 11,000 Units in Brazil

During discussions, Oliveira stated: "I want the best for Rio. I want the ISS (Service Tax) to be collected here, not in São Paulo. We also want to ensure security and that rental data is shared with the city government."

Smaller property owners—individual landlords renting out their homes—protested against the bill, along with other council members.

"People here pay property taxes, income tax, water, electricity bills, and more. Everything else is just a narrative. This proposal only adds bureaucracy and creates new fees. In my opinion, it should go straight to the archives," warned Pedro Duarte (Novo).