Brazil Real Estate News
Property Market Trends and Reviews

US supermarket giant Wall-Mart has announced plans to expand its operations and invest 400 million reals (£101 million) in the north-east of Brazil.

Wall-Mart is just one of a number of international firms that are looking to expand in Brazil and take advantage of the country's growing economy and consumer spending power. The Pao de Acucar Group is the leader of Brazil's supermarkets and topped last year's ranking of stores by ABRAS(the Brazilian Association of Supermarkets), after earning more than £3.8 million. However, the Brazilian chain will face stiff competition from US supermarket giant Wal-Mart in the future.

Vicente Trius, chief executive of Wal-Mart Brazil has said that eight supermarkets will be built in Pernambuco, seven in Bahia; three in Rio Grande do Norte and one in Ceará. Wall-Mart aims to open 28 new stores and 19 pharmacies across the country with around 1 billion reais (£253 million).

Figures revealed that Brazil's supermarket spending power has increased over 4.2 per cent this year. The growing spending of the Brazilian consumers is expected to flow into the property market in the coming years increasing demand and property prices.

Independent analysts Amberlamb has said that economic growth and a burgeoning tourist industry have created a lucrative property market in Brazil and property prices are booming, which it claims has been brought on by a strengthening economy.

A recent report by Nubricks has highlighted Brazil's economic buoyancy and the Brazilian currency, the real increased by 16 per cent against the pound.

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The Union of the Civil Construction Industry (Sinduscon) has anticipated Brazil's construction sector's dramatic increase in activity and said that it should grow by a tenth this year.

Sinduscon has stated that the industry growth by nine per cent in 2007 will be beaten this year and suggests that these high levels of demand reflected in the Brazil's booming property market. ANBA has reported that Brazil’s vibrant economy and increasing purchasing powers as the main causes of the sector's performance.

Property experts believe that the growth in the housebuilding component is "noteworthy" and a healthy economic outlook is continuing to boost workloads within the construction industry. This improved buoyancy in housing market activity and prices are boosting housebuilders confidence. Eight million more homes are now required in Brazil and the publication added that nearly 15 per cent of Brazil's households are unfinished and most of them require regular maintenance work.

The sharp pace of growth is a mark of the confidence in the Brazil property market that companies are so eager to build, with the residential sector undoubtedly leading the way. High levels of demand and only limited supply may also increase the property prices and the country has seen capital growth of around 20 per cent in its property last year.

This comes after currency specialist HiFX has recently predicted Brazil to be a hotspot for property investors in 2008.

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Nicholas Marr, spokesperson for property portal Homesgofast.com, said that foreign investment in the Brazilian property market is hotting up. Property experts suggested that house prices are increasing year-on-year in coastline areas, while those looking to invest inland could benefit from cheaper property prices.

Rhiannon Williamson, director of Amberlamb, has said that overseas investors are looking towards Brazil as the next residential property investment hotspot. She added that the country's fabulous climate, low living costs and emerging status as factors appealing to foreign investors.

The 134 per cent increase in tourist numbers taking place from 2002-05 demonstrates that tourism is booming and also the guaranteed year round rental potential. The Brazilian government is investing profoundly in improvements to the country's infrastructure. The infrastructure improvements across the country indirectly support investors by raising the appeal of certain locations.

In 2003, investment banking and securities firm Goldman Sachs chosen Brazil, along with India, Russia and china, as one of the four emerging countries at the fastest economic pace that would have supremacy in the world economy in the future.

This comes after the Mirror highlighted Brazil as a good option for foreign property, mainly due to its fabulous weather, thriving economy and affordable property prices.

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Overseas investors have been advised that recent problems in the global economy could ultimately work in their favor as many developers are failing to meet their sales quotas. Property investors in the current economic climate could find themselves well-placed to negotiate a good price.

Morgan Stanley's head of emerging markets, Jonathan Garner explained the reason he is advising investors to make land and property sector investments in countries such as Brazil is that the credit crunch has not affected these emerging markets. He further added that the banks are in good shape and the households are not overextended. Property experts have said that Brazilian market's real estate laws are designed to support property purchasers and make them self-assured about the security of their investment.

Mr. Garner's claim is further supported by figures compiled by the Reuters, which showed that household debt to GDP ratio in Brazil is less than ten per cent whereas in UK it is above 100 percent. Brazil is effectively weathering the storm created by the downturn in the global economy.

NuWire Investor recently recommended North-east Brazil which said its growing tourist trade and strong economy makes it a good location for investors to consider.

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The National Aviation Agency has announced it will authorize airfare reductions of up to 80 per cent Brazil aviation industry figures reveal that demand for flights to Brazil is increasing at a significant rate.

The agency, which controls the nation's commercial flights policy, has announced that the initial reductions will start from the flights for any of South American region's other 12 countries and has plans to expand the policy to other continents in the near future.

The new policy is expected to make international air travel in Brazil more viable and it is set to enhance the country's tourism industry and increase the visitor's numbers, therefore enhancing its appeal as an overseas investment spot.

As a result, it is likely that many of the locations in Brazil will benefit from increased visitor numbers. This could be a positive development for owners of rental accommodations, as they could experience a surge in demand for tourist accommodation. Therefore, this may attract more overseas investors to consider purchasing property in Brazil to take advantage of the growing market.

Maraa del Mar Ayudarte, Air Europa's head of international sales has recently said that The UK market to Latin America is booming. Rhiannon Williamson, director of Amberlamb has said that Brazil is easily and affordably accessible from UK and mainland Europe and also it offers "outstanding" investment opportunities.

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The Nordeste Invest seminar, a tourist investment and real estate event which is held in the northeastern Brazilian state of Pernambuco over 50 speakers from Brazil and from overseas took part in the event.

The purpose of Nordest Invest is to show the lifestyle attractions that the region has to offer, including its golf courses, beaches and good scenery and the investment opportunities in the region. The event is promoted by the Real Estate and Tourist Development Association of the Northeast (Adit Nordeste) in association with the Brazilian Export and Investment Promotion Agency (Apex-Brasil).

The previous edition of the event attracted US$ 187.8 million in foreign investment. The Brazilian economic prospects, the impact in tourism and in the real estate market, development of residential tourism in Brazil and investment outlook in infrastructure in the Northeast are discussed in the event.

Bloomberg has recently reported that Brazil has "robust earnings growth" and that is likely to be enjoyed by overseas investors. Property experts suggested that foreign investment in the Brazilian property market is 'hotting up'.

According to property website Homes Worldwide, Brazil has seen capital growth of around 20 per cent in its property. British buyers are looking towards Brazil as the next residential property investment hotspot as they are attracted by Brazil's excellent climate, lower living costs and its emerging economy.

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The real estate in Brazil is creating numerous opportunities for overseas property investors, according to experts.

Resort Group International has said developers who had been occupied in the Spanish market are now looking for Brazil with the objective of exploring the real estate sector there.

Brazil is recommended as an alternative to Spanish property because the property market in Brazil has not yet been tapped into and it qualifies as an emerging market. However, it offers excellent infrastructure and with abundant supply of natural resources. Brazil also offers highly desirable surroundings and good quality facilities at a relatively cheap price. The property market is boosted by fast-growing tourist infrastructure, whereas property prices have yet to shoot up, making it perfect for today's investors.

Accounts manager Lawrie Smith of Resort Group International has said that Brazil has the similar attributes to Spain and offers an incredible mixture of attractions as it has fabulous sandy beaches, an incredible climate and hospitable people. However, it offers comparatively cheap properties, which means investors could potentially grab a bargain. Besides, the growth in the market that is presently taking place would allow buyers to profit from healthy capital appreciation

Recently Foreign Property Buyer said Brazil is "worth a look" as Brazil has booming tourist market and demand for rental accommodation would be always on the rise.

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Morgan Stanley's Emerging Markets Index has now reported that the Brazil as the next residential property investment hotspot. Brazil has a rapidly growing economy and is becoming especially popular with overseas investors.

Brazil is one of the few energy-independent countries in the world; they have the largest supply of fresh water in the world and the recent the discovery of oil reserves gives the country added income opportunities. Brazil is blessed with abundant supply of natural resources. All these factors combined with good tourist trade and the fabulous climate makes Brazil as a good prospect for investment

The recent economic changes taking place in the Brazilian market, stable government and strengthening of their currency are creating huge ripples in the property market.

Obelisk believes that the commencement of new credit facilities for example personal loans and mortgage lending are pushing up house prices in both the domestic and commercial sectors.

The property and land prices are rising but still affordable and investors in rental properties could expect returns of about six to seven per cent a year.

James Gonzalez, Market Analyst at Obelisk has said that Brazil has become a highly appealing option for overseas property investors and the news of hosting football World Cup in 2014 is also driving up property prices in many places. Brazil could prove to be a wise investment choice for anyone looking for an overseas property purchase.

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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.

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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.

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Despite general downturn in the property markets of developed countries, eco-property is back and strong. Announcing an eco-property investment in Brazil, does not come as a surprise.

The plan for building an eco-resort in Brazil, gained momentum last week, due to increased numbers of early-bird investors in the surrounding land. This heavy entry-level investment was least expected, which in turn, brought in plenty of momentum to the eco property effort. In the wake of this development, it has been reported that most other property developers in Brazil, too, are planning similar resorts in different areas.


As mentioned, eco property booms in Brazil are to be expected, and, as a country experiencing great growth in overall real estate market, particularly, a development, which gives priority to ecologically friendly construction, such interests are only natural.


However, when such an interest is spotted in a developed country such as the UK, it appears surprising to most analysts. The United Kingdom has an affluent upper class that is very cautious about environmental protection and issues related to that field, which is not found in Brazil.


As referred to by the 'Times Online', being a class of 'affluent eco-worriers', people are the primary driving factor behind interest shown in eco property in the developed countries. It is said that people need to have money, to act on a belief in eco property.


But, a recent report released by Smart Money has suggested that an eco-home could cost any amount between three to five percent, which is more than a conventional home of the same size and amenities, irrespective of the place where it is located. However, the same report also states that there is also a downward movement seen in pricing of eco property, which is yet to translate into any real demand. Hence, the opinions of analysts differ on whether it will happen in the near future.

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A new golfing resort has been granted planning permission in Brazil, which could possibly attract the sport fans to purchase a property in the country.

The golfing resort will be located in Belmonte, and the work on the building is likely to be complete within 18 months.

The resort will be managed by David Lloyd, the Global leisure club chain, and an agreement to this effect has been signed, which indicates the level of international interest, and the investment that Brazil is currently attracting.

With more than 80,000 members, David Lloyd will receive information about the golfing opportunities at the Brazilian resort, which will provide sufficient international exposure to the nation.

Belmonte is a beautiful stretch of coastline, beginning from Santa Cruz Cabralia, and continues till the boundary between Bahia and Espirito Santa states.

The coastal city has its own airport, and hence those considering property investment in the region, get to access their property by the air.

VRG, the premium airline in Brazil, announced operation of an additional flight connecting Sao Paulo to Madrid, last week. This will be the tenth international route by the airline, forming a part of its plan to reach out to a broader market.

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Investor all over the world should consider Brazil as place to put in their money. Developments are sprouting all over the country and to counter any possible ecological disaster, the government instituted strict policies safeguarding the environment.

David Beckham, one of football’s notable, will open an academy right in Brazil more particularly in Natal. His proposed project has already gotten the nod from the environmental authorities tasked to man construction of edifices. This will include a mini-stadium and a small sports complex. There will also be an area for training and a provision for living quarters where trainees will be accommodated. This is projected to draw even more visitors to the place. This is set to open by 2014 in time for the FIFA World cup. It is laudable that it passed the stringent requirements for environmental compliance.

Other projects did not have an easy time in getting the approval of the authorities. One such development is the Grand Golf Natal which has yet to satisfy the requirements in terms of waste treatment and the specifics on its water supply. The developers need to present an explanation of the resort operation’s effect on the environment.

The Brazilian government has strict standards regarding the country’s environmental sustainability thus the enforcement of eco-friendly policies. It is believed that such adherence to the law will guarantee that the natural resources which attract visitors to Brazil will be preserved. Tourists will have a reason to come back and experience the beauty of the country and this will in return create a growth in the rental revenues. At the same time, this is a clear manifestation that development and ecological balance can co-exist and the Beckham Academy can attest to that.

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LandAmerica Financial Group will be the sponsor of the 2008 Brazil Real Estate Summit. The event will took place on Wednesday March 5th at Le Parker Meridien in New York.

The event which was organised by the Brazilian-American Chamber of Commerce provided insights and strategies for competing in the real estate sector. Real estate executives from across the world assembled at the event along with leading financial experts and business leaders and exhibited the property investment opportunities in Brazil.

Overseas property investors have been advised to pay close attention to Brazil over the next few years as they stated that Brazil could potentially experience a property boom in the near future. The half day conference observed various factors that are decisive to the success of Brazilian real estate investment, from tax and legal concerns, title insurance to the countless investment options available to the overseas investors.

Brazil's appeal as an investment market is spreading across the world Since Brazil is not been so badly affected by the current credit crisis; this trend is expected to continue. The country was praised for offering a strong and growing economy, which has led to capital growth in its housing market. Commenting on this development, property experts said that it is expected to contribute to house price inflation in the near future.

For more information about the 2008 Brazil Real Estate Summit, visit www.brazilcham.com.

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Economic boom and easier credit terms have sent Brazil hurtling into a consumption frenzy as millions ... seeking a much wider customer base. Well-heeled Brazilians and international corporations are pouring billions of ... means they know they can do it - real estate agent Salvador Rodrigues said.

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