Brazil Real Estate News
Property Market Trends and Reviews

Brazil is predicted to be the next major investment property hotspot and it is one of the top places for British property investors. Brazil breaks into top 10 for the first time of Currencies Direct's monthly Global Emerging Markets Index, charting at number nine. That means Brazil is the ninth most popular investment location for Brits buying homes abroad, according to Currencies Direct.

Currencies Direct noted that Brazil is the richest Latin American country and has well-developed mining, agricultural manufacturing and service industries, a large labour pool. According to PropertyShowrooms.com, Brazil is emerging quickly as property investment hotspot for European property entrepreneurs’ and annual price increase by as much as 20 per cent. The property market and infrastructure are developing at fast pace and this is the time to consider a purchase.

However, Mark O’Sullivan, head of trading at Currencies Direct, said property investment in Brazil come with many positives and negatives that investors should ensure the facts before making an investment.

Carlos Novis Guimaraes, chairman of the board at property developer Invest Tur has said in an interview with market watch that purchasers could find property for sale in many different environments. Harry Lewis, a director of Savills, predicted that Brazil would attract further interest from overseas property buyers during the next few months. So the investment in Brazil housing market would be highly lucrative for property investors.

This comes after the reports from The Latin Business Chronicle that Brazil’s real estate has shown positive growth over the last few years, buoyed by a strong economy.

Labels: Economy, Market-Trends

Brazilian tourist authorities have announced the launch of new promotional campaign to boost Brazilian tourism. The $6 million promotional campaign is launched across various media, including print publications, TV campaign and internet.

The national tourism institute official figures show that visitor numbers to Brazil climbed in October, showing a 15.2% year-on-year increase. Brazil saw an increase from the 479,550 from October 2006 to 552,520 people arriving in october2007. They also indicated the growing trend of package tourism visitors.

Property investor Louise Brown stated that speaking to the Telegraph; the surge of tourists would boost the local economy, with the holiday industry being the linchpin.

In the year 2006, 721,633 Americans visited Brazil, outnumbered only by Argentinean tourists. So billboards highlighting Brazil's tourist destinations are erected in a number of major US airports. Brazil’s tourism industry is predicting total number of visitors in 2008 should well exceed that of last year based on the current performance of Brazil’s travel industry so far this year.

The stats indicate good tidings for overseas investors into the country’s developing second home property market and holiday rental accommodations. The promotional drive to boost country’s tourism further increases Brazil’s claim as next big thing as travelers and property investor’s world over seek new emerging destinations

Labels: Tourism

Brazil was officially named as 2014 hosts of football World Cup, also known as the FIFA World Cup. Property experts predict that The World Cup will bring huge real-estate profits to Brazil.

Easier Property said that hosting the world’s biggest sporting event by the country in 2014 would add to the confidence of investors. Brazil is on the threshold of a massive international exposure and is now considered a true property hotspot for overseas investors.

Former Brazilian international Antonio Lopes told Reuters that Brazil as a whole is going to be benefited through the FIFA world cup. This will highlight the country on the international stage and draw attention to many of country’s major cities. Holiday makers and overseas property investors are more and more getting attracted towards Brazil due to the overwhelming prospects the world cup is going to offer. Those who have and going to have commercial Brazil property investment by 2014 would see huge demand for their rental accommodation due to the influx of football fans.

Long-term enhancements in transport; environment, tourism and significant improvement in public safety are going to take place due to the mega event. This may drive up the property prices in that places which are going to host the world cup matches.

F&C assets management revealed that emerging markets like Brazil are drivers of global growth and in Brazil; overseas investors can find good valuations and strong earnings.

Labels: Investment-property, Overseas-property

IN2 property investment, specialists in overseas property investments has said that
With the property market in Spain facing an uncertain future, Brazil is emerging as the next big thing on the world's property investment market. Brazil has long been a favourite travel destination and a new breed of experienced and adventurous investors are increasingly looking to make their trip more permanent and acquire property in the country. Tourist trade reached an amazing £5 billion in 2007 which is 14.76% more than that in 2006.

IN2 property investments are now singling out Brazil as the next big property hotspot in the South American region. Brazil offers high rental yields of 4-6% and house price saw an increase of 20% in some areas last year. A study carried out on the overseas property market by Datamonitor, for Overseas Property Professional magazine, finds younger buyers of UK are increasingly turning to newer, emerging markets like Brazil. Brazilian Properties cost only 70% of those in similar European resorts.

Goldman Sachs economics report in 2001 predicted that Brazil will become one of the most dominant countries in the future and the International Monetary Fund expects Brazil economy to grow by 4.4 per cent in 2008 and so the property investment in Brazil is spiraling upwards. Real estate specialist The Overseas Property Agency reckons that there are many good reasons to buy in Brazil like the lowering interest rates and controlled inflation rate.

Then again, economic growth is not the only one factor influencing property investment overseas property investors are attracted by the burgeoning tourism, valued second-home market, spectacular coastline, magnificent natural beauty, year round sun shine and temperate weather.

Labels: Economy, Latest-News

The new Regulations which were introduced in 2005 have had a real impact on real estate market in Brazil. The real estate market became more democratized and more realistic for low-income groups to get onto the property ladder.

According to Abecip (the Brazilian Association of Real Estate and Savings Institutions), The loan activity in the sector has soared and the number of real estate loans has increased from 53,787 in 2004 to 195,900 in 2007. Jose Carlos Oliveira, professor of economics at the University of Brasilia, told the Latin Business Chronicle that the changes revolved around real estate guarantees. The government permitted banks to possess the property until the borrower had repaid their loan completely and the buyer becomes the owner only after he has paid off the loans. This results in the person who provides the funds to have a further impetus because he can pick up the property in case of non-payment.

The regulations of Brazilian central bank according to conditions specified by the SFH (the Housing Financing System), 65% of all the government’s savings had to be given for housing credits. The remaining credits should be offered at present market rates and used for funding residential real estate.

The government anticipates that the regulations will cheer up the investors who are looking for property for sale in Brazil.

Labels: Economy, Market-Trends

Property Frontiers reports said that overseas property investors can make a profit in Brazil's emerging property market. Marsha Lu, spokesperson of property frontiers has said that Brazil property investment could be lucrative if a buying strategy is worked out properly.

Brazil is also enjoying considerable growth in its housing market due to its growing economy and political stability. International Herald Tribune has stated that foreign buyers are attracted as ever to the prices, weather and beaches in this vast and tropical country. Marsha Lu added that newer markets like Brazil can yield higher profits, but there are also certain risks attached. Nevertheless, she stated that the investment returns from emerging market would be greater than that of established markets. She concluded that if the investors are ready to take higher risks the returns would also be proportionately higher and lower risks means the returns will also be lower as well.

Beachfront online portal has stated that construction prices for quality homes in Brazil start at only $200 per m2 (approx. $20 per sq. ft.). They have anticipated that prices of beachfront properties may double in 2 years due to high demand and huge international investment in recent years.

According to an index by Currencies Direct Last month, Brazil has made to the top ten popular property locations for UK buyers.

Labels: Market-Trends, Overseas-property

Brazil is the world's tenth largest economy in GDP terms and its economy has expanded 5.4% last year. This expansion in economy is credited to the growing personal wealth and greater demand for property.

Officials added that Brazil also saw increase in consumer spending power, reduction in poverty rates and business development in 2007. The rate of growth was also found to increase substantially. When it comes to economic growth, Brazil has grown since 2000 at an annual average rate of 3% and in 2006 it was 3.8 percent which means that economy growth has picked up the pace.

The favourable economic growth suggests that investors could possibly get high returns. The Brazilian government initiative to improve the country’s economy has encouraged foreign investors to pour capital into the country. The government’s structural reform program and efforts to build a more welcoming climate for investment, both domestic and foreign is reaping the rewards.

Brazil was recently highlighted by the Foreign Property Website as buying property in Brazil is very lucrative. With the economic situation in Brazil getting healthier, this is the right time to invest as property prices rising by about 20% per annum and looks set to go up even further.

Labels: Economy

A Brazilian real estate developer has received permission to construct about 20,000 new homes.

The Sao Paulo-based company, Inpar, is likely to receive $1billion from Caixa Economica, the state-controlled bank, for construction of these properties.

According to a report by Bloomberg, Brazilians earning ten times the minimum monthly salary are the targeted residents for these homes built by Inpar.

This development indicates an increasing demand for the property in the Latin American country, a trend, which most foreign property investors are capitalizing on, at the moment.
During a span of past five years, the real estate prices in Brazil, have increased by 20 percent, while in certain areas in the North-Eastern part of the country, this figure is even higher.

According to Expert researchers, Property Investor and Homebuyer Show, based in UK, Brazil is an emerging country, which was on the verge of a property boom in the show that happened last year.

Official statistics indicate that the cost of living in Natal, located in the north-east of Brazil, is 20 percent lower than that in UK, with the prices of residential properties being one-third of that in Spain.

Labels: New-developments