Brazil in the middle of an epic real estate boom
Monday 13th of February 2012
Brazil has long been a favorite tourist destination for travelers around the world but now the country’s bustling economy is also attracting property investors from overseas.
International analyst BMI says that the nation is in the middle of ‘an epic real estate boom’ with property prices rising 20 per cent in 2010. So, if you’re considering a foreign property investment, Brazil should be on your shortlist.
Housing shortage driving demand and prices of Property In Brazil
Despite economic uncertainties in other parts of the world, Brazil’s GDP is expanding at a rate of 5 per cent per annum and looks set to be boosted further by the 2014 FIFA World Cup and 2016 Olympic Games which are scheduled to be held in the country.
The National reports that ‘the property industry has been one of the major beneficiaries of the economic growth. More than 30 million Brazilians have joined the middle class since 2003 - and they are eager to buy homes.’
Sam Rodgers from the Bric Group also points out that many more Brazilians now have access to the wages and finance needed to buy property. "For 100 years people in Brazil couldn't buy property because they couldn't afford to buy property. There is a massive housing deficit."
Economists estimate that the housing shortage in Brazil is between 5 and 8 million properties.
In order to help kick-start the construction of affordable homes, the Brazilian government launched a programme called Minha Casa Minha Vida in 2009, which aims to subsidise construction of more than 3 million houses by 2014.
This also allows foreign investors to target domestic housing projects as well as the beachfront property that has historically attracted buyers from around the world.
Liam Bailey, the research director at Knight Frank, concluded: “Interest in Brazilian Property has surged in the last five years.”
