Property Select

• Home
• Property Search
• News
• About Us
• Contact

PROPERTY IN BRAZIL SET TO BENEFIT FROM 6% CAPITAL GROWTH AND NEW DEVELOPMENTS

Thursday, 24 Jul 2008

The Brazilian Reais is predicted to strengthen against both the Sterling and the US Dollar and therefore any increase in price is likely to be amplified by currency gains once buyers chose to exit the investment.

Scheduled price rises in property developments are often just a gimmick used by developers to motivate buyers to move quickly.

Investors still have a chance to secure BTL units at pre-construction prices in Joinville, Brazil.

Construction costs and levels of wealth are also rising rapidly; therefore it is normal practice to increase prices at regular intervals to reflect the market conditions.

According to a property expert, Dan Johnson, director of E-Quity, "For investors looking to make an immediate equity gain while linking their investment to a strengthening currency, July is a pretty good month to be looking at the Brazilian residential market.” He also went on to say that “The Reais looks likely to continue strengthening in the short term, while construction costs also look likely to go on rising for the next couple of months, albeit at a reduced rate.”

In the words of yet another property expert, "In the current global climate of price volatility, it's important for investors to maximize the effect that short term surges in price can have on their capital as global markets rebalance."

According to sources, Alagoas, one of Brazil's lesser-known States could become the country's next investment hotspot. Located in the Northeast region's second-smallest state, has an “impressive coastline relative to its size (230 km) which many say is the most beautiful in Brazil because of its coral reefs, myriad coconut palms, white sand, red cliffs and bright turquoise sea.”

It has long been a popular Brazilian tourist destination, yet the opening of the international airport just outside the capital, Maceio, in 2005, with the potential of welcoming direct flights from Europe next year, has brought it to the attention of international investors for the first time.

The President of ADIT Nordeste, Felipe Cavalcante, commented that “Alagoas is a potential high class tourist and real estate destination. The local government is focusing only on high-end real estate projects so the state receives the best developments in the country which add to its natural scenery. It is wonderful to see that the natural beauty of Alagoas will be enhanced by all these top quality real estate projects.
Such partnerships are serving to leverage the economy of the state and attract more attention from international investors."

All in all, one can clearly see that there is little wonder why many investors are referring to Brazil as the “promised land” – opportunity is rife and lucrative – what more would one need?

Property Select offers a comprehensive selection of overseas property in Brazil, news, members club and reviews of the latest property developments.