Published on 23 October 2005 at 12:43 pm
Filed under: South/Central America:- Brazil Property Guides » Brazil Real Estate Investment Guide
Since Brazil’s new administration took office in 2003 the government has succeeded in creating an economy ripe for foreign investor interest and promoting a fiscal and political environment conducive to growth.
These factors alone mean that the real estate sector in Brazil has become far more attractive to overseas investor interest and as international tourism numbers increase and retirement communities are established in Brazil, so the breadth of opportunity for investment is widening.
Local and international confidence in the Brazilian administration has grown rapidly since 2003 and this confidence has been based upon the government’s sustained and so far successful policies to create a far more resilient economy with reduced inflation a stable currency and strong export performance.
In 2004 the Brazilian economy out performed all expectations for it and the GDP real growth rate was up 5.1%. In the same year inflation was significantly reduced and expectations for 2005 predict that inflation will further decline. 2004 also saw real estate prices increase by as much as 20% in the North-eastern region of Brazil where investor focus is particularly strong.
The Organisation for Economic Co-operation and Development have highlighted three interrelated areas for the Brazilian administration to focus on and target for the on-going success of the country’s economy; currently the government are working on strategies and reforms to ensure these areas are targeted appropriately. The areas are: -
1 Improving the quality of fiscal consolidation,
2 Enhancing the investment climate, and
3 Improving the cost effectiveness of social programmes.
As mentioned, the North-eastern coastal area of Brazil is already enjoying increased investment focus. This area of the country has seen record real estate price gains in the residential and commercial sector as retirees, second homers, tourists and now international businesses flock to this area. The former three groups are attracted by the near perfect climate and stunning natural landscape, the latter group are attracted by the lower labour and overhead costs in Brazil. The demand for property for sale and rent and investment real estate deals in this region of Brazil is intensifying and so prices and potential returns are increasing.
As the Brazilian currency has recently stabilised and become far more competitive with other international currencies such as the US dollar, so this has increased overseas investor’s purchasing power in Brazil. The competitiveness of the currency means that international businesses from the US and UK who are establishing themselves in Brazil are able to operate with far lower overhead costs and improve and increase productivity and profits. International expatriates who relocate or holiday in Brazil are also finding that their money goes far further making it an affordable tourist destination or a cheap retirement country.
Brazil always offered real estate investors a stunning country in which to invest with beautiful beach front properties particularly popular to buy and let out to tourists or resell to retirees; but as the Brazilian government work to create a competitive and stable country with attractive investment incentives available to individuals and companies who choose to commit to Brazil’s future, so investment into Brazil’s property market becomes a far more attractive opportunity. The level of overseas interest in property for sale in Brazil is therefore at an all time high and simply set to increase.
South/Central America:- Brazil Property Reports
Complete listing of all current property reports for region: South/Central America:- Brazil
