Investors ‘discover’ Brazilian property
The outside world has discovered Brazil, making the nation a property investment hotspot, according to one commentator.
A spokesperson for the Embassy of Brazil in London has asserted people’s knowledge of Brazil as both a tourist destination and a place to buy property is growing.
"I wouldn’t say it has been neglected, but there is hardly any promotion about it, so the UK has invested in other places around the world, obviously for different reasons," he stated, adding that statistics highlight healthy growth in the property market.
In particular, the spokesman cited a recent study by Ernst & Young which predicted the nation’s property market will be worth £130 million by 2020, more than double the £48 million it currently stands at.
He also referred to data which show Brazilian property prices are on the up, with the potential to keep increasing for the foreseeable future.
"According to statistics, property prices in Brazil have been growing to the tune of 20 per cent per year, especially in the north-east of Brazil. According to studies, this is set to increase over the next ten years, especially with the forecasted increase in tourism."
Other figures from the embassy highlight that the volume of property in Brazil being bought increased by 80 per cent in 2007.
The spokesman claimed the country has been recognised as a good location for property investment in the past few years, suggesting its attraction lies in the fact it is a popular holiday destination.
He added: "The English especially like to invest in property abroad, for holiday purposes, so they are discovering wonderful places where that can happen."
The BuyAssociation asserts that Brazil is an attractive investment location as it boasts a diverse landscape, rich culture, good climate and, significantly, an affordability.
In addition, there is a vast array of new build property available in the country for investors to choose from.
It notes that the cost of living in Brazil is just 20 per cent of that in the UK, which could be what is tempting British buyers to invest in the nation.
The firm also highlights that land in the country is very reasonable, with costs of approximately £5 per sq m being reported.
According to a foreign exchange specialist, the exchange rate in Brazil is also opening people’s eyes to its investment potential.
Deane Roe, an account manager with MoneyCorp, stated that as the pound plummets against the US dollar and the euro the real makes property in Brazil look even more favourable.
He stated: "The Brazilian real is currently being weakened as investors sell off high risk assets and more volatile currencies. The movements over the past few weeks have been huge and it all works in favour of the British buyer."
The real is still heading downwards, hitting a two-and-a-half year low in recent days, which could mean it is good time for would-be investors to strike.
According to the Brazilian Embassy’s spokesperson, investors looking to buy property in Brazil can also be reassured there are fewer signs of recession and turbulence than in other nations.
He stated that while the credit crunch is having an effect worldwide it does not seem to have hit Brazil as much as other countries.
"I’m sure it will have some effect, but we expect it not be as high," he concluded.
