Brazilian property market is ’strong’
Recent reports have suggested that the Brazilian property market is strong and continuing to grow, with experts describing the country as “an affordable paradise” and predicting the sector will do “really well” this year.
One couple revealed to the New York Times last month that their investment has almost doubled in value in the last few years.
Susan and Matt Marshall fell in love with the country and decided to buy a waterfront house in Buzios, near Rio de Janeiro.
They spent $360,000 (£245,300) on the 630 sq m property, named Ferradura, plus $55,000 of taxes and fees and $2 million of renovation work.
Now they are being offered between $3 million and $ 4 million by local real estate agents, although they will not budge, with Mr Marshall saying: “The time and effort we put into this dream – that’s the priceless part, and it has no price tag.”
In addition, a recent study by Halifax found that the rise of the value of the pound against the Brazilian real has made the country a reasonably-priced location for holidaymakers and investors, especially when compared to European countries such as Spain.
The research showed that in the latter six months of 2008, sterling gained 16 per cent against Brazil’s currency.
Paul Collins, property editor for Buyassociation.co.uk said last month that the Brazilian government has put the country in a good position to weather the economic storm by stock-piling currency to make sure it “doesn’t overstretch itself”.
He believes the country is “coming into its own” from both a tourism and an economic point of view.
“Brazil is probably one of the only markets that has emerged recently that should do really well this year as well,” Mr Collins declares.
Adam Samuel, director at overseas property blog Nubricks, concurs with these reports.
“From Brazil’s point of view, compared to some other countries, the investment proposal stacks up more,” he states.
Mr Samuel says it is difficult to predict the future due to the instability in the global economy, but looking at the current conditions, the country shapes up well.
He asserts that the factors that led Brazil to become a good emerging market have not changed, despite the worldwide financial crisis.
“They have strong, local economies and the raw materials to back up their economy,” he claims.
“In regards to residential property, and certainly the beach areas there, some of the areas are frequented by a richer Brazilian population so they are not so dependent on the tourism market, although that is a big factor,” Mr Samuels continues.
So where should investors be looking for property in Brazil this year?
“Your city investments certainly stack up in regards to the fact that you are not dependent on the tourism market. You are looking at locals who would rent the property because the industry and the business are in those commercial areas, rather than the beach areas,” he concludes.
