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Brazil Investment Growth

There are several reasons why Brazil has great potential as an emerging property market today. Below you will find out why Brazilian property offers you a such a promising new investment vehicle.

Investment property in Brazil is establishing itself firmly as a viable opportunity worldwide and recent years have seen an encouraging annual property price growth rate of 20% in some areas.

Since President Lula’s progressive economic policies, Brazil has fast developed into a sound economy with a fiscal and political environment conducive to growth. Today the climate for investment property in Brazil has never been more promising.

Property in Brazil is already making a name for itself amongst the world’s investors, while there has recently been much media coverage on the merits of this emerging market. Brazil’s new property developments are generally accepted to be of high quality and competitive prices mean that Brazil can boast top quality property for a fraction of the price of property of far less caliber elsewhere in the world (eg. 80,000 EUR for a luxury one bedroom beachfront apartment in 2008).With improved communications to the country and cheap direct flights now available from most European airports, Brazil is attracting growing numbers of tourists and short-term holiday rentals are generating excellent rental yields for investors. The Brazil Tourism and Culture Movement has great ambitions for Brazil and aims to transform it into one of the twenty most attractive tourist destinations of the world, attracting some 9 million visitors by 2007. This is set to have positive repercussions on an already thriving investment growth rate in Brazil.

Capital Growth Predictions

Based on solid evidence, general opinion is that as an emerging market, Brazil offers some promising growth potential to all types of investor. While some areas of north eastern Brazil around Bahia are currently attracting as much as 20% annual capital growth, and other areas are also experiencing price rises at a healthy rate, Brazil undoubtedly represents a profitable opportunity to early investors aiming to gain the greatest returns possible on their investment.

Rental Yield Predictions

Rental income from Brazil property is of great interest to investors as high rental yields are already achievable from property located in the current tourist hotspots of Brazil. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved during the peak season months alone (December to February).

Brazil Economy

Brazil’s economy has experienced some excellent growth over the last three years since President Lula’s office began. Currency exchange is at a favorable level for foreign investors and inflation is encouragingly low at only 5.7%. In addition, President Lula’s policies encompass strong internal investment as well as funding from the USA to improve the economic structure and entice tourism to Brazil, while continuing to encourage large foreign businesses to establish themselves in Brazil.
Economists now predict that Brazil will be amongst the economic leaders of the future, along with Russia, India and China.

Reasons why Brazil is an intelligent property investment location:

  • Year-round sunshine, with average summer temperatures of 21°C.
  • Some areas in the north east of Brazil saw property price returns of 20%+ in 2005.
  • Current favorable currency exchange, making it cheap for foreigners to invest.
  • President Lula has brought great hope and improvements to Brazil, including a decrease in inflation to an all-time low.
  • Foreign investment is actively encouraged and you can own 100% of land and property.
  • Low cost of living compared with many areas of Europe. Property maintenance costs are low.
  • Inflation low at 5.7%.
  • Increase of thriving manufacturing industries relocated to Brazil.
  • Expected to produce all of its own oil within the next year.
  • Great natural beauty with fantastic scenery and 7,000km of beaches.
  • According to some economists, Brazil will be amongst the economic leaders of the future, along with Russia, India and China.
  • Friendly nature of the Brazilian people, along with rich culture, vibrant cities, carnivals and music.
  • Low international risk of war, terrorism or SARS.

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