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THE FACTS ON PROPERTY IN BRAZIL

Tuesday, 29 Jul 2008

Bearing only good news for property investors in Brazil is the very latest statistics from the World Travel and Tourism Council (WTTC). Relating to the tourism based demand in Latin America with specific focus on Brazil, highlighting the fact that Brazil’s commitment to a fiscal and political overhaul, and to the greater promotion of the nation as a desirable and safe place to visit, invest, do business and live is proving more than successful.

The vast majority of individual property investors who have committed or who are considering committing to Brazil’s property market are currently basing their commitment and predictions for growth and profitability on the ongoing development of Brazil’s tourism market…

Experts have said the hype surrounding Brazil's investment potential is entirely justified as it offers numerous attractions to foreign property investors.

Property in Brazil will be boosted by the WTTC statistic which show that travel and tourism demand in Brazil in 2007 is growing at a rate of 7.2% – almost 3% higher than the global average increase – and that for the next decade this increasing intensity of demand will remain exceptionally strong.

For property investors who were biding their time and waiting to see hard evidence of the sustainability in terms of the stabilization and improvement of Brazil, the World Travel and Tourism Council statistics combined with the news that we reported last month relating to General Electric Real Estate’s commitment to invest heavily and for the long term into property in Brazil, enough evidence is stacking up in favour of a property purchase.

A spokesperson for Knight Frank claimed that people are choosing to purchase property in Brazil for a number of investment reasons.

Investors choosing to buy second homes in the country are doing so to take advantage of potentially higher gross profits, he said, while others are "looking for value".

"It is somewhere which has not been developed to the extant of Dubai or Spain, so it offers a bit of exclusivity," he commented.

Hetal Shah, director of Investors Provident, recently suggested that people seeking to purchase investment property abroad are becoming "quite adventurous" when moving into new markets, such as Brazil, Egypt and Morocco.

According to Mr Shah, capital growth in these emerging property sectors is often between ten and 15 per cent a year.

Seeing the economic boost that, the Brazilian government has since committed to everything from infrastructure and accessibility improvements to an aggressive global push in terms of the promotion of
Brazil as an exciting place to visit, and as is clear from the WTTC statistics, the government’s actions are proving successful.

Overseas property investors are beginning to discover the opportunities offered by the emerging Brazilian market, according to one expert.

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