The Brazil Property Market
The current state of the Brazil Property Market
A combination of strong and sustainable economic growth, low inflation, stable currency, oil self-sufficiency, increased exposure to the international markets, significant FDI and flourishing tourism have all drawn in substantial investments into Brazil’s real estate industry with the influx escalating under the prevailing favourable conditions.
This activity is further intensified by:
Cheap labor and inexpensive building material
Undervalued real estate prices in certain areas of the
country offering outstanding growth potential
Active government incentives for foreign investment which include simplified buying procedure, 100% foreign land and property ownership, a registration process that ensures a free and clear title, low taxes and fees associated with purchasing and owning property and no restrictions over the transfer of profits or capital.
Low interest rates
No visa requirements for most Europeans for visits of upto 6 months
The Brazilian real is still favorable at the moment making it cheap for foreigners investors to buy Brazilian property
A surge in the number of tourists with over 10 million short term tourists expected in 2008 ( Embratur the Brazilian Tourist Authority).
A sharp decline in US interest rates which translates into lower financing costs in emerging markets and improvement in capital appreciation prospects.
Brazil’s population is expected to grow to about 220 million by 2020; an increase of about 30 million over a short period of time.
The Ministry of Tourism invested over the last few years over R$ 1,7 billion (US$1.1 billion) in tourism related projects and infrastructure.and is planning to invest more.
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