Should We be so Positive About Property in Brazil?

It’s not often that we have a crisis of confidence or clash of opinion at Amberlamb, but when it comes to Brazil, not all in the office is hunky dory. 

As regular readers will know, the general consensus of opinion here has always been that Brazil makes an incredibly interesting prospect for property investors seeking long term, strong potential for growth, yields and above all else profitability...but should we be so positive about property in Brazil?

After all, despite many promises and predictions the nation’s economy has been volatile and slow to grow for the past 40 years, and who’s to say the future will bring anything like stability and advancement? 

Then there’s the World Bank who in 2006 pointed out that the Brazilian economy had demonstrated little in the way of positive development in the past 25 years...oh, and let’s not forget the “Doing Business 2008” report which actually downgraded Brazil to 122nd in the world in terms of ease of doing business – or rather, the lack of ease of doing business! 

Oh – but to heck with all of this, actually, we’re still pretty hot on Brazil and in this report we’ll show you why we’re pinning our hopes on promises being fulfilled.

Brazil HAS changed; in 2007 there was strong and consistent growth in terms of GDP and the general advancement of the economy.  So far this year according to Bloomberg, the finance minister Guido Mantega has said that the nation will be on track for between a 4.5 and a 5% economic expansion.  These figures are not only literally positive, they are positive because they are realistic, obtainable and sustainable.  And it is realism and sustainability that has been seriously lacking in Brazil’s economic past.

President Luiz Inacio Lula da Silva is more than committed to the sustainable and realistic development of his nation and that is the main reason why we are still so positive about property in Brazil.  And we’re not the only ones.  A widely reprinted and discussed story from the Financial Times in December had the likes of Chris Allen, HSBC Private Bank’s head of real estate fund management hot on Brazil too.  Chris Allen is cited as stating that “Latin America should be considered an area for investor interest – particularly Brazil, where falling interest and inflation rates have coincided with stability in the political system and a growth in the owner-occupier property sector.”

Mr. Allen is spot on with regard to the growth in the owner-occupier property sector in Brazil, and he’s noticed that there is an ongoing advancement in terms of urbanisation in Brazil too which results in opportunity in everything from infrastructure investment to commercial property investment.  And then of course there’s the tourism market.

And it’s the tourism market that is attracting the vast majority of individual and small investors to Brazil.  There is money to be made from the fact the Northeastern beaches are becoming more accessible and more affordably accessible as well.  There is money to be made from the increase in demand as European and British travellers recognise Brazil as an attractive, enticing medium haul destination.  And so we remain positive about property in Brazil because the profits that will be made will be made in a nation that is doing all it can to manage consistent, reliable, sustainable and realistic growth, development and advancement.  And despite the fact that such promises have been made before, we believe in President Luiz Inacio Lula da Silva and his ability to turn his nation around.

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.