Brazil Real Estate Market
Here at Emerging Real Estate, we have several investment opportunities in Brazil meaning that we pay particular attention to the progress that the country is making. And while every sign indicates that the real estate market in Brazil is set to continue booming, some analysts believe that diversity will be key to sustained development.
Brazil is currently experiencing record levels of construction which along with foreign investment is really driving the rapid property expansion. Because of this growth, both prices and of course returns on investment are on the increase – a trend that is more and more often being repeated throughout the country. The residential property market is now starting to see gradual price rises, particularly in the north of the country. While in commercial property, Rio, Brasilia and Sao Paulo are raking in their highest rentals ever.
The overriding belief of most analysts is that the current expansion of the Brazilian real estate market will continue because of the demand drivers already in place. The Association for Mortgages in Brazil (ABECIP) highlighted the huge potential it believes exists in Brazil in a recent article, pointing out that Brazil is a recognised world leader in the production of several commodities including iron ore and soya.
Another thing we have spoken about here at ERE in the past is the fact that a growing middle class in Brazil will need properties, goods, services etc. These factors together with the higher building costs and scarcity of land lead ABECIP to believe that prices for Brazilian real estate will continue to rise for at least the next three years. The article also reminds consumers that there are two schemes competing with each other and therefore putting pressure on prices. The Minha Casa Minha Vida scheme and the government Growth Acceleration Programme (including social housing) between them will have built 3 million homes by the end of 2014, just in time for the World Cup.
ABECIP indicates their belief that diversity may well be crucial when investing in Brazilian real estate in this current scenario of rising prices and expansion. Unsurprisingly perhaps ABECIP is advocating investment in a variety of products within the wide spectrum of residential and commercial property in Brazil, ensuring the investor will spread both risks and returns. Of course, the association would recommend products that compliment their own but in real estate terms, it is impossible to argue against Brazil being ‘hot’ property right now.
For a full list of the opportunities we have in Brazil, please click here
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