How Brazil is bucking the trend

26/03/2011

 

How Brazil is bucking the trend
The Brazilian property market is still growing, bucking the trend that is currently affecting many other countries in these difficult economic times. A lot of this can be put down to the fact that Brazil has a huge shortage of housing and in fact The Sao Paulo Federation of Industry recently carried out a study that calculated Brazil has a shortfall of over 7 million properties. This figure does not take into account the rising population and further evidence showed that within the next 12 years, the number of required homes could increase by a further 25%.
While exact figures vary, it is widely accepted that the Brazilian construction and property development industries will need to provide over 23 million homes by 2022, requiring an investment of R$3.2 trillion. Backing this up, a report by Ernst & Young last year suggested that by 2030 Brazil will need 37 million properties.
The already well known Minha Casa Minha Vida (‘my house, my life’) programme aims to build 3 million homes over the next 5 years but there are huge opportunities for the private sector as developers build thousands of homes to help make up the shortfall. This ever increasing demand for property is fantastic news for investors who are almost guaranteed an extensive rental and buying market for their properties in Brazil.
Other reasons to invest in Brazil apart from the current huge shortfall in housing and the ever growing population is a growing economy which saw Brazil’s economy grow by an impressive 7.5% last year, the 2014 World Cup, the 2016 Olympics and Brazil’s burgeoning middle class. Property prices are rising which is also excellent news for developers and investors and house prices in Rio alone have almost doubled in just three years – a report by Brazil’s Fipe research institute recently reported that since early 2008 property prices in Rio have increased by 99% and in Sao Paulo by 81% and a similar boom is reported in Salvador in the North East of the country.
To talk to us about any of our properties in Brazil, especially our exclusive city apartments in Salvador, please do not hesitate to contact us – we look forward to hearing from you.

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