Property Investment in Brazil Bandwagon

As our regular and valued readers will know, we at Amberlamb have been hot on the Brazilian property market for quite some time and have been vociferously and widely singing its praises - so in a way it was only a matter of time before the wider world awoke to the property investment potential in Brazil – especially as by now it is pretty undeniable. 

Therefore, when we took a look and saw that now even the British newspaper the Sunday Mirror was promoting the virtues of real estate purchases in Brazil we were only a little bit taken aback!  It seems that maybe even those seeking a second home overseas for brief holidays will be on the property investment in Brazil bandwagon by the end of the year – so what does this actually mean for the market, will it become oversaturated, oversold and over-promoted? 

It’s an undeniable fact that Brazil is gaining ground in popularity among individual investors as the media hype promoting the country steps up a gear.  Investors and buyers subsequently led to the market by the positive press promotion of Brazil are, on the whole, then doing their own due diligence and determining that there remain excellent fundamentals on which an investment decision can be taken.

Basically because Brazil has committed to a fiscal and political overhaul that has so far been successful, all eyes are on the nation and foreign direct investment is confidently inward flowing suggesting that there is long term room for growth in all sectors especially real estate and tourism.

As a direct result of these facts, greater promotion of the nation as a desirable and safe place has followed and this has attracted international interest from the likes of General Electric Real Estate at one end of the scale to perhaps your neighbour or cousin who’s just seeking an apartment abroad at the other end of the scale!  But to say Brazil has arrived as a mature market in which long term fortunes can be secured would be jumping the gun a little! 

At Amberlamb we still consider Brazil an emerging market - just - because quite simply it has not been tried and tested and then tried again!  Yes, with the likes of Donald Trump entering the development market and General Electric Real Estate committing to massive and sustained investment commitment as aforementioned, Brazil’s property market is certainly a market in transition - but we like to remain a little cautious and would advise potential investors to remain the same.

Now, in terms of property in Brazil becoming overpriced – this is not going to happen fast because there is still plenty of property stock to go round and there are very real affordability limits dictated by the domestic market.  What this means is that prices currently remain highly competitive.  Having said that - because investor interest is now so strong and because travel and tourism interest is currently growing at a rate of about 7.2% annually according to the World Travel and Tourism Council, there are developers and agents cashing in on a wave of relatively naïve speculative behaviour among some less experienced investors. 

Therefore it is essential that an investor looks closely at a potential purchase, examines exactly what is being offered, included and guaranteed for the price and compares like for like across other properties or developments and across similarly attractive locations to ensure they are not being asked to pay over the odds.  Often an investor secures the majority of their potential investment success at the point of purchase in a market like Brazil’s – so as the old adage goes ‘buyer beware!’

In support of investment commitment in Brazil are many factors – but some of the key factors include the Brazilian government is wholly supportive of foreign investment – and to the promotion of tourism interest as well.  They understand that both are required for the benefit of their economy’s stability.  The main way the Brazilian government is seeking to support foreign investors is in an holistic way by ensuring economic, social and political stability in Brazil so that the broader marketplace remains attractive to investors and the nation remains a growth hub in the region. 

In addition to this, the Brazilian government has sophisticated and well developed real estate laws which protect the buyer whether they are foreign or local which gives investors great confidence.  The government is also an investor in infrastructure development programmes in Brazil which indirectly support investors as they raise the appeal of locations where road and air access has been improved for example.

In terms of accessibility, the main area of tourism and investment interest in Brazil is Rio Grande do Norte – it is also the safest region in Brazil and the region receiving the most money in terms of infrastructure and accessibility improvement.  As a result the region is easily and affordably accessible from Europe and the UK and so you could say it’s easy to fly to Brazil and you can definitely say it’s getting easier and cheaper all the time.

Therefore, will the fact that everyone is seemingly jumping on the property investment in Brazil bandwagon ruin the nation and an investor’s chances of profiting?  Not in our opinion no, the fundamentals for profiting from property in Brazil currently remain excellent.

Special Reports: Property News for Brazil

Brazil Country Guide for Property Buyers
Guide to Brazil from a real estate investor's perspective focusing on the property investment opportunities and the beauty of Brazil

Brazil Real Estate Buying Process Guide
The real estate buying process in Brazil is straightforward and well regulated which gives buyers confidence in the property market

Brazil Real Estate Investment Guide
Brazil real estate offers fantastic medium term investment potential now that the government are committed to long term economic development.