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PROPERTY IN BRAZIL USHERS IN ECONOMIC EXPANSION FOR THE COUNTRY

Friday, 25 Jul 2008

Brazil’s economic expansion is picking up pace, as is apparent by Eletropaulo, Brazil’s largest power distributor and Unibanco, Brazil’s third largest private sector bank having both posted better than expected profit results in the last few weeks, seemingly setting the trend for Brazilian based companies.

The positive factors that are contributing to a buoyancy in the property market in Brazil are varied and range from the fact that the country has witnessed an increase in the profitability of certain major companies, a number of large international companies with bases in Brazil are expanding operations and inflation in Brazil is at a seven year low – these are all factors which boost the economic prospects of the country and bode well for the real estate sector.

Brazil is benefiting set to benefit from the fact that investors are now taking into account exchange rates when deciding on their holiday or investment destination.

There has been a flurry of positive news coming from Brazil recently which has translated into good news for property for sale in Brazil; so much so that Brazil is being tipped by property experts as an emerging country poised on the verge of a property boom.

Industry analysts have recently revealed that investors and general holiday makers are becoming increasingly aware of exchange rate movements – as they are tending toward watching financial fluctuations and taking them into account when deciding on which country to choose as a holiday or investment destination.

As the hordes of investors flock to Brazil, one can only further foresee more lucrative opportunities coming to full fruition, due in part to the Brazilian government taking a Pro-foreign stance and having taken measures to ensure the implementation of infrastructure to maintain the standards of service and facilities in which to cater for all tourist and investor needs, adequately.

Property in Brazil and the overall cost of living remains low and reasonable – a positive aspect in Brazil’s favour – as according to John Nicholas (Director, Travelex) the fact that travellers are generally more ‘savvy’ with regards to exchange rate movements, “this led to people travelling to places where they can get more for their money”.

Brazil is one of the top choices in this instance, as this Latin American country falls amongst the few emerging markets, as mentioned by Adrian McDermott (Managing Director, Escapes2), “Brazil and the other expanding markets of Egypt and Cape Verde are among the most active in the world at the moment”.

These factors are fuelling the speculation among experts researching for the UK based Property Investor and Homebuyer Show and according to some senior analysts in the property market, property for sale in Brazil could offer investors up to 20% capital appreciation over the coming medium term.

Brazil’s economic expansion and record low levels of inflation could well result in central bankers in Brazil cutting the benchmark lending rate right down to size – this in turn could result in a flurry of local property market activity as the cost of borrowing is reduced to affordable levels for more Brazilian citizens.

As there is a severe lack of housing in Brazil, investors looking for development opportunities could consider construction projects for property in Brazil which opens up another form of property market investment in this rapidly developing market.

Other alternatives for international property investors are fuelled by the fact that the cost of living in Brazil is incredibly affordable and this is resulting in the country developing as an expatriate centre particularly for those looking for an affordable retirement haven.

The stunning weather that parts of Brazil enjoy all year round has attracted a growth in the numbers of international citizens seeking holiday homes to buy and rent which is another growth sector for property investors to consider targeting. Great news all round then for property for sale in Brazil it seems!

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