Brazilian property ‘has great potential’, despite global turmoil
Investors considering property for sale in Brazil might be interested to hear the nation is being touted as a country on the make with great investment potential.
Property Bond International claims that there is an immediate requirement for 8.5 million homes in Brazil.
It adds that due to the nation having such a young population this requirement is rising by 1.5 million every year.
Clive Hawkes, director of the organisation, said the nation has a growing economy despite the global credit crisis and recession.
There is also a massive oil field that has been found off the coast of Rio de Janeiro, which will generate a great amount of money into the nation, he added.
Mr Hawkes explained it is believed that the nation will become one of the top ten oil producers in the world and this find could contain 100 million barrels of oil, which means that once oil prices pick up again Brazil will have a big slice of the commodity.
The nation’s state-owned oil giant Petrobras announced this week that it has began its operations in the Campos Basin using the platform P-53 which has created thousands of jobs for the local economy.
According to the firm, the P-53 will be interconnected to 21 wells and has the production capacity of extracting 180,000 barrels of oil per day.
Mr Hawkes states that the growing lower middle class is another reason that Brazil is a wise choice for investment.
"It was not that long ago they started introducing credit to the country. People can now afford to buy properties which they would not have been able to previously," he explained.
Meanwhile, Reuters reported that real estate mogul Sam Zell told a New York forum sponsored by the University of Pennsylvania’s Wharton business school that Brazilian property is one of the best markets for investors wanting to expand their portfolios.
He added that the nation is self-sufficient, has a strong pool of skilled professionals and has good natural resources.
"If you look at all of the facts, I don’t think there is a better environment in all the world than Brazil," the property tsar added.
He forecasted that the nation’s economical power could surpass that of China’s in 30 years time.
Mr Zell concluded that funding for property in Brazil has been largely unaffected by the global financial turmoil that has dampened the demand for some nation’s markets.
The Times reported last month that Felipe Cavalcante, the chairman of the Association for Real Estate and Tourism Development in Northeastern Brazil, claimed the market remained buoyant and that speculators had been scared off by the financial crisis which has left well-structured companies operating in the market.
"By 2030 there will be 35 million new families needing housing," he added.
Mr Hawkes claims that because of the cheap way of life in the country a number of people are choosing to buy property in Brazil when they retire.
"They can buy a nice property, they will then have a lot of money left over on their equity, and the cost of living is remarkably cheaper. Their money will go further, they have the weather, and they have the beach. It is a nice way to live your life," he concluded.
