We are hearing more and more about the potential of investment property in Brazil to bring good financial returns in terms of capital growth and rental income. So let’s look at a few of the economic indicators helping to attract foreign investors to the Brazil real estate market.
Here is a quick list of important indicators that are making a positive impact on Brazil’s property development industry.
- A stable economy with strong and sustainable economic growth
- Energy self-sufficient with own oil source and reserves
- Low levels of inflation
- A significant and increasing growing tourism industry
- High FDI (foreign direct investment) and increased exposure to many international markets.
The investment in Brazil real estate and property development is helped along by the following factors.
• At the time of writing (Sep 2008) property prices less expensive that similar properties in holiday destinations and emerging markets and some would save under valued. Especially the off plan touristic property development being built in the northeast of the country in places like Rio Grande do Norte where the tourism market is starting to boom due to beautiful sandy beaches and magnificent scenery.
• The Brazilian government also have a number of positive incentives in place to encourage foreign investors like 100% foreign land and property ownership, low taxes and fees associated with purchasing & owning Brazil property and a simple clear registration process that ensures a free and clear title deed plus no restrictions over the transfer of profits or capital gains.
• As far are developers looking to build tourist resort properties and residential building complexes they are happy in the knowledge that both the labour costs are low and building materials in Brazil are quite inexpensive.
• Brazil has low interest rates as and a increasing strength of the Brazilian currency the Real.
• The Ministry of Tourism have invested over R$ 1,7 billion (US$1.1 billion) so far in tourism related projects and infrastructure. Additional investment is planned.
• Over R$ 1,7 billion (US$1.1 billion) has been invested by The Ministry of Tourism over the last few years so far in tourism related projects and infrastructure and they are also planning to invest even more.
• There are no visa requirements for most Europeans to visit Brazil for up to 6 months and also the number of tourists has surged to over 10 million short term tourists expected in 2008 (Source: Embratur the Brazilian Tourist Authority)
This short article has just focused on a few of the factor economical factors that are helping to make Brazil investment property attractive to foreign buyers. Of course Brazil has a lot more to offer in terms of lifestyle property and people looking excitement, carnival culture and sun, sea, & sand.