About Brazil

Why Brazil?

Investment Opportunity

Now has never been a better time to invest in Brazil, with recent times having seen huge interest in the real estate market.

We expect Brazil's on-going political and economic stability to form a further catalyst for growth. The corresponding increase in tourism, property development and the strong economy will further raise the credibility of the market with both investors and second home owners. All in all the economic future looks bright for Brazil and we expect this will continue to boost both the domestic and international interest in the property market.

So What's the Attraction?

  • The cost of living is up to 20% lower than in the UK. How about dinner for two in a good restaurant for £6, and a beer for 55 pence?
  • Property prices are still very low, although a new financial structure and more access to mortgages will see them soon rising fast.
  • Brazil is an emerging market - the earlier you invest, the greater your profit potential.
  • The property market is in its infancy. The coastline around Natal is mostly development free and most of the land is now ready to be built upon.
  • The property market is tipped to grow at a phenomenal rate as international tourism grows and the Brazilian domestic economy is fast improving.
  • A new airport in Natal is being biult, which will be the biggest in South America and is due to be operational by June 2009.
  • Low interest rates and inflation under control make possible realistic guarantees of long-term market stability.
  • Extremely friendly people - quoted as the main factor by 96% of holidaymakers visiting Brazil when they declare their determination to return.
  • Statistically Brazil's safest region.
  • The North East is historically the only tropical region in the world free from terrorism, hurricanes, tsunamis and earthquakes.

Natal ticks all the boxes for an emerging market, and is among the most sought after property locations in the world.

The Brazilian real estate sector has come out of a long period of stagnation. However, since the 1994 economic recovery plan (Plano Real), macroeconomic reforms and fiscal management has launched Brazil into a path of sustainable growth.


Since 2003, Brazil has experienced record breaking export performance, translating into higher rates of economic growth and job creation. Low inflation, together with falling interest rates and a stronger currency are creating a much more positive environment for investments in the real estate sector. In addition, record tourism has helped improve the image of Brazil not only as a prime leisure destination, but also as a serious country to invest within, committed to fiscal responsibility,democratic principles and rule of law. The recent legislation reform establishing increased lines of credit to the local mortgage market will have a positive impact on increasing demand for real estate property.

KEY FACTS

  • Strong economic growth
  • FDI encouraged by Government
  • Stable Democracy
  • 5 million new jobs created in last 4 years
  • New infrastructure and Airports being created nationwide
  • U.S.A Investment program
  • GDP growth of 3.7% in last quarter

 

RENTAL RETURNS AND TOURISM

With accessibility set to become even easier with the arrival of new International Airports. The Brazilian tourist market is set to eclipse the 11% achieved last year, with tour operators
increasing activity. Rental yields achievable in the Natal region are in excess of 8% per year based on only 40% occupancy, making this coastal city the first choice for buy to let Investors.

 

CAPITAL APPRECIATION AND THE PROPERTY MARKET

There are alot of sound reasons on which to predict capital growth within Brazil’s Real Estate market. This economic sleeping giant is due to wake with the help of investment programs from the U.S.A, which will have a knock on effect to the Real Estate market. If you add this to an almost unrivalled breadth of tourist attractions plus low entry level prices, it is not hard to see why Brazil is a country which has found it’s self on most property Investors shopping list’s.

   

Brazil, in the News...

"The latest data confirm real GDP growth of 2.9% in 2006, with accelerating private consumption and investment partly offset by booming imports. Wide interest differentials and other developments in the domestic capital markets will maintain upward pressure on the Real, which we now project, will register only a marginal depreciation in 2007-08.

The Economist

"Some five million new jobs were created during Lula's first four-year term"

Info Brazil

"The Brazilian currency has gained 3.8 percent so far this year, the best performer of 16 most-active currencies against the dollar."

Bloomberg.com

"Natal is now famous for tourism worldwide and we ranked its beach like one of the 10 best beaches on the world"

Lonely Planet

"Foreign investment in Brazil is favoured by the government, you are allowed to own 100% of property and land, if you want to you can have up to 10 names registered against a Brazilian property. Over the past five years the price of property has risen by 20% and luckily price returns for investors in some areas have also increased to 20%"

Market-trend.co.uk

"During the Lula administration, the Central Bank was able to consolidate its credibility, conquering new steps towards its formal autonomy."

El Mundo