Investment Property Brazil - Investors' Guide

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Brazil – Investment Guide

Brazil is fast becoming a major player in the world of overseas property investment.  A solid, promising economic climate and much international press coverage over the past two years are encouraging a new rush of foreign investors to the country.  Top economists now predict that Brazil will be amongst the economic leaders of the future, along with Russia, India and China. 

Investment growth in Brazil is at its highest in the hotspot of Bahia, on the north east coast where tourists flock to enjoy its magnificent beaches and a balmy tropical climate.  Here, some investors are experiencing growth of some 20% per annum in key beachfront resorts while in 2007, Brazil expects to have increased foreign tourist figures to a massive 9 million, all boding well for timely investors. 

Why Buy Property in Brazil?

Hopeful Economic Future

President Lula has done much to reform the Brazilian government to its current proactive status.  Foreign investment has rocketed through new government policies and incentives, while foreigners can now own 100% of land and property.   Lula’s government has reduced inflation to an all-time low and Brazil is also expected to produce all its own oil within the next year – all good signs for investors in a strong economic future.

Only 75,000 EUR for Luxury 3 Bedroom Villas!

Now, this is only an example, but off-plan prices such as this are typical in Brazil’s hotspot region of Bahia.  Investors can buy a lot of property for their money and, with capital growth in this area of around 20% per annum, many buyers are excited by the great potential that such properties have to offer, not only as homes but also as lucrative buy-to-let investments to rent to the huge influx of international tourists to this region.

So Much for your Money….

The cost of living in Brazil is around 20% of that in Europe, making the cost of holidays and maintaining your property very low.  The Brazilian real estate market has stabilised, greatly increasing overseas investors’ purchasing power in Brazil.  International expatriates as well as corporate investors are making the most of this situation, many of whom are relocating manufacturing industries to Brazil and greatly reducing their labour and commercial real estate costs. 

As demand for property for sale and rent in all areas of Brazil intensifies, property prices and potential for returns on investment will continue steadily on the increase.

That Brazilian Vibe

Tropical Brazil is unmistakably beautiful and exciting, while boasting a vibrant carnival culture that many foreigners find quite infectious.  With 7,000 km of idyllic white sandy beaches and crystal waters, alongside palm trees and exotic vegetation, Brazil attracts sun-worshippers and eco-tourists alike.

The Amazon Rain Forest hosts rare species, flora and fauna, along with dramatic waterfalls and swamps for the more adventurous. Meanwhile Rio de Janeiro’s iconic Copacabana Beach stretching three miles in front of the city, offers a lively, unmistakable street culture that also draws visitors in their droves.

Idyllic Resorts

Brazil has caught onto the idea of resort-style living.  Many foreign investors, holidaymakers and second homebuyers are reassured by the new international, all-purpose gated communities that are going up in some of Brazil’s most stunning coastal locations of the north east.  While building is kept within strict low-density regulations, tourists and purchasers enjoy modern standards and a completely relaxed outdoor holiday lifestyle.

Easy Access

Brazil is well served by budget airlines from North America, Europe and Asia with flights frequently coming into Rio de Janeiro, Sao Paulo, Brasilia and Recife. Brazil’s national airline, Varig, operates domestic flights along with a wide availability of flights to Rio from Lisbon, Portugal.

Also see: Buying Property in Brazil