Overseas and UK Property investment blog

Experts predict a great year for Brazil property investment

30/01/2012

 Experts predict a great year for Brazil property investment

The global economic positions recently released by the Centre for Economics and Business Research (CEBR) confirm that Brazil now ranks as the world’s sixth largest economy, following particularly strong economic growth over the past two years. Brazil has now overtaken even the UK, prompting the Chief Executive of CEBR, Douglas McWilliams to amusingly note that “Brazil has beaten European countries at soccer for a long time, but beating them at economics is a new phenomenon”.

2011 saw record levels of foreign investment in Brazil with the main focal point being the property sector. Social housing within the government programme Minha Casa Minha Vida was particularly appealing but so were holiday homes in areas such as Natal and residential investment in the major cities such as Rio de Janeiro and Sao Paulo. Brazilian real estate funds also saw huge increases as overseas investors confidently put their money into funds that specifically backed the thriving property market.

CEBR have forecast that Brazil will continue to thrive throughout 2012 with emerging markets remaining dominant, especially given the European economic woes. They predict that the ‘BRIC’ economies (Brazil, Russia, India, China) will in fact dominate the world’s top ten economies by 2020, with only Japan and the US predicted to perform as well or better.

A leading private investment company recently stated that “we believe 2012 will be another excellent year for Brazilian investment. With all the signs pointing to continued high returns from investment opportunities across the board in Brazilian real estate, Brazil is difficult to beat”.

Brazil’s burgeoning middle class, increasing purchasing power, growing population and tourism appeal are all contributing to this trend that currently shows no sign of slowing down. Emerging Real Estate is handling a number of exciting investment opportunities in Brazil and we would be delighted to discuss any of these with you.