Brazilian property investment fuelled by the discovery of oil

Petrobras, Brazil's state-controlled oil company has discovered in the Santos Basin in the southeast of the country around eight billion barrels of light oil, which could catapult Brazil on the map as a major exporter of oil. The oil resource which was found in the Tupi field could represent 40 per cent of the total oil reserve in Brazil and affords a huge economic boost for Brazil. These oil and gas discoveries in the last 3 months off the coast of Rio de Janeiro will make Brazil break into the top ten list of oil producing nations.

Business Week has reported that the Tupi oil field is 155 miles off the coast of southern Brazil and is the biggest oil find since 2000. Rodrigo de Azeredo Santos, head of the Trade Promotion Programs Division of the Ministry of External Relations has said in an interview that Brazilian oil reserves, biofuels and availability of hydroelectric power generation are added guarantees that Brazilian property investment is safer due to the assurance that energy will be available to sustain the economic growth. The oil discoveries are so important for property investors in Brazil as similar oil boom in Dubai and Norway have regularly seen their property market post record price increases annually.

Brazil's property market is now in good shape for overseas investors. According to Jose C. Santiago, licensed and certified attorney of law in Brazil in his portal LawOfficeInBrazil.com has stated that the country is a buyer's market, with low prices because there are more homes for sale than there are buyers. The demand for property in Brazil is expected to increase by approximately 900,000 units each year.

Overseas investors looking for good property returns with relatively low-entry costs may consider investing in Brazil following the oil discovery, which may strengthen the country's economy and in turn raise property prices. Business week has reported that Brazil is a smart place to invest. It is a self-reliant country on the energy front, a position that has been further strengthened by the recent discovery of new oil fields.