Brazil Property News: Investors to consider what’s “driving the market”




18th September 2007 10:14


People considering investing in foreign property should examine the factors “driving the market” according to new research.

Key factors for consideration are the levels of foreign direct investment going into an area, the level at which wages are rising, how fast the economy is expanding and how the country’s demographic is changing, says Simon Tweddle at Property Secrets.

Market analysts Knight Frank have recently recommended investors look to Brazil for buy-to-let opportunities, following positive economic indicators.

A paper published by Goldman Sachs in 2003 stated that over the next 50 years Brazil, along with India, Russia and China could be larger than the G6, in US dollar terms.

More recent data shows that the average income in Brazil has risen by 7.2 per cent in 2006 with the biggest increase in the north-eastern part of the county, according to the Brazilian National Statistics Institute.

In the bigger picture, Brazil’s economy grew by 5.4 per cent in the second quarter of this year, according to government figures, marking the Latin American country as a clear emerging market with potential for property investors.

Mr Tweddle emphasised the importance of considering economic factors, “not just the pretty pictures.”


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