Property Investing in Brazil

Property investing in Brazil just makes so much sense right now. Apart from a booming economy that's bucking the world trend, Brazil has secured the 2014 football World Cup finals and the 2016 Olympics. Has there ever been a double coup like it?

These factors make property investing in Brazil an amazing proposition right now. Add to all that the climate, the beauty of the landscapes, the pull of the endless beaches and the culture of the people, and you have an unbeatable property investing opportunity. Brazil is so reachable, too. It's just six hours' flying time from Europe and the US.

Let's consider the economy – a major factor for anyone looking at property investing. In Brazil, the economy is stable, with fine opportunities for safe investment. It's a huge country that makes up half of South America, which means it has the largest national economy among Latin American countries.

Some very large multinationals, notably Microsoft and Marriott, are ploughing considerable sums into the Brazilian economy, for which Goldman Sachs has predicted big things.

For those considering property investing in Brazil, stability is key, and Brazil's stability began in earnest in 2003. This was when Brazilian government began to tackle the country's debts and accumulate foreign reserves. Brazil became a new external creditor in 2008, and it was awarded investment-grade status by credit agencies.

What about the global economic problems? Yes, Brazil was affected, but the country was one of the first emerging markets to recover. Confidence and GDP growth are on the up and the good news for anyone considering property investing in Brazil is that the Central Bank is forecasting at least 5% growth a year until 2016.

On these pages, you can find out more about why property investing in Brazil is a great move right now.

 

However you look at it, it seems that Brazil is sitting on the edge of a property boom. In some places, notably emerging tourist areas such as Ceara and Natal, values in the last two or three years have shot up by an amazing 20% year-on-year, a figure that looks all the more attractive against the current inflation rate of 5%.

Admittedly, Brazil is not yet fully developed. It has 190 million inhabitants and an improvement in the infrastructure of education and transport is still required. But, with the country moving in the right direction, you feel anything is possible.

The general sense of wealth is reflected more and more in the price of Brazil property. Although still affordable and, right now a great move for investors, the price of Brazil property is widely expected to rise in 2012 – according to an authoritative new survey.

Reuters polled a number of banks, research groups and business associations and found that most of them believed that growth between five and ten per cent was realistic.

It's a rise fuelled largely by the growing Brazilian middle class who are increasingly looking to stop paying landlords and become homeowners themselves. Rises in the prices of Brazil property in 2012 are expected to peak in the first six months of the year; values are expected to stabilise as 2013 approaches.

Brazil property attracts land and property investors looking for huge rewards from property, whether it be residential or commercial. Although much of Brazil is given over to forestry, the coastal areas, such as Bahia and Ceara, as well as traditional hotspots such as Sao Paolo and Rio, are booming under a wave of new development that should provide a superb return on investment.

Brazil real estate is also made more interesting by the fact that the country is now so well-connected by air. Brazil is just a short, six-hour flight from the US and it's now connected by a similar-length flight from the UK and Western Europe.

Infrastructure improvements have already taken place to accommodate the influx of visitors and the government has splashed out on an R$300,000,000 upgrade to Maceio airport, which has given it international status. This ambitious project will also involve building a bridge that connects north Maceio to Recife. When this work is finished, the north of Brazil will become more accessible and property prices are forecast to increase.

Despite all this, there are still many bargains to be had when buying Brazil property. A coastal apartment in trendy Ceara can still be bought for US$100,000, and many parts of Sao Paolo and Rio offer affordable Brazil property for first-time investors.

Of course, on top of all these attractions, Brazil retains its status as a fabulous draw for tourists. The beaches are stunning, festivals are spectacular and frequent, and the climate, especially in the north, is almost perfect. Brazil also offers a natural environment and a culture that's fascinatingly different for visitors from Europe and the US.

The other major factor that's driving the upswing in Brazil real estate prices is the country's double coup in securing both the football World Cup of 2014 and the Olympic Games of 2016. To be successful in hosting just one of these remarkable pageants normally signals a huge input of inward investment and an improvement in a country's infrastructure.

Winning the right to host both events is unprecedented. Needless to say, work on infrastructure, such as transport links, airports, roads and hotel accommodation is in full swing, which is bringing Brazil's cities right into the 21st-century.

In summary, Brazil property could scarcely be a hotter prospect right now. With the economy booming, the Olympics and World Cup lined up and the country's mining industries continuing to grow, serious investors are taking a long, hard look at the opportunities offered by Brazil real estate.