A recent survey of opinion of high net worth individuals (or HNWIs) conducted by Knight Frank and relating to the respondents’ views on ideal locations for real estate purchase, both for investment and personal occupation purposes, saw Brazil being repeatedly cited as an extremely interesting destination to watch.
In addition to this fact a number of UK based property investment companies and websites have recently been promoting Brazil heavily as they have noticed increased investor interest turning away from the spent European destinations such as Spain and Bulgaria in favour of Brazil. It seems property in Brazil is rising in favour with investors and the wealthy so we thought we’d introduce you to the market and show you what’s so hot about Brazilian real estate.
Brazil has a number of factors weighing heavily in its favour. Since 2003 when a new administration took office in Brazil the fortunes of the nation have really turned around. Brazil is no longer considered a politically and economically volatile nation, rather it is seen as a nation ripe for investment and a country offering almost unparalleled levels of potential return.
Many US and European companies have relocated centres of operation or expanded and opened branches of their company in Brazil since 2003, and many more are continuing to follow in their footsteps because, on the one hand Brazil is a cost effective nation to operate within and from, and on the other hand consumer spending in Brazil has increased significantly in recent years meaning there is a larger local market share to tap into than at any time previously.
These factors underpin the stability of the economy and suggest there is a lot of confidence in Brazil’s future, this has led investors to come out of the woodwork and to explore the property based opportunities in Brazil as a result.
The first thing that strikes you when you begin researching real estate and land for sale in Brazil is that the prices are currently incredibly low even in the most popular tourism resorts or business centres. For Knight Frank’s HNWIs this means opportunity, and for you as a potential property investor this means you can exit lower performing markets before they crash and still re-route your capital into property in a market that has yet to feel any of the effects of a global boom.
If you’re a retiree or you’re looking for an affordable second home in a stunningly attractive destination Brazil also offers you options as well. Retirement communities are springing up, the seaside resorts popular with locals for decades are now gaining international recognition and all in all, Brazil seems to have something to offer everyone.
One negative factor exists however…Brazil is quite a long haul destination with few decent flight routes yet established. Naturally this keeps interest at a moderate level and means affordability remains strong. However while this lack of accessibility is currently a negative factor affecting the market, you could see it as a positive factor as it is keeping property prices within reach. It’s entirely fair to assume that as and when accessibility improves – which it will – prices will rise as demand increases and those who can buy in now will reap the dividends quite literally.
