Good reasons to buy property in Brazil
Whatever type of property you are looking for, there are many reasons why it makes sense to purchase your property in Brazil.
Brazil is one of the four largest developing economies in the world (the three others being China, India and Russia) with an annual GDP growth of approx 6%. According to Goldman Sachs, by 2050 Brazil will be the world’s 5th biggest economy. Read more about the Brazilian economy and other interesting news in our Brazil property news section.
2.Under priced real estate market
Due to continuous years of lack of purchase power during the 80’s and 90’s, the price level for real estate in Brazil is still extremely attractive. Now that the economy is growing and inflation is low, the 186 million Brazilian population is starting to buy property with bank financing just like the populations in all western countries, it is expected that property prices in Brazil will increase steadily for the foreseeable future.
3.Growing mortgage market
Historically banks in Brazil could by law not repossess a property if the client defaulted on a mortgage, hence virtually no banks borrowed money. Only a few years ago, the law changed and now the brazilian mortgage market is growing very fast. Currently total mortgage values represent only 2% of the Brazilian GDP, however the Brazilian government expects the Brazilian mortgage market to grow 600% by 2014, with total mortgage value reaching 12% of GDP. As a result, an increase in value of Brazilian real estate will take place across the nation for the foreseeable future.
4.Long term future market stability and existing demand
Brazil has a big population of approx. 186 million. Brazilian middle class is already at 92 million and is forecasted to grow 65% by 2015. Brazil also has over 1.000.000 multi millionaires who are attracted to European styled coastal holiday homes far away from Brazil’s vast mega cities. Along with future domestic economic growth and increasing spending power of the big Brazilian population, this trend is set to continue. No other emerging market can equal the strong Brazilian long term demand.
5. Low building cost
Compared to most other destinations, building costs are low in Brazil. This represents excellent opportunities for property investors as they can buy a property in Brazil for a bargain price compared to what the future price level will be. Along with economic growth, building costs are set to increase. Investors that invest in Brazilian property while the building costs are low, stand to gain the most.
6.Foreign investment encouraged
There are no restrictions imposed by the government for foreigners buying property in Brazil. Brazil receives international investments with open arms, assuring respect to contracts and the rights of foreign investors. Property ownership is 100% freehold and secure.
7.Lower inflation and interest rates
The steady fiscal reforms and and economic stability have pushed down the Brazilian interest rates and inflation significantly. With inflation currently at approx. 5%, Brazil is becoming an investment magnet country and has received several investment upgrades from leading economical institutions.
8. Big domestic tourism market
When Brazilians plan their holidays they don’t have to look any further than their own border and they usually head to the northeast of Brazil (because of the climate). Last year the domestic tourist arrivals was 45 million in Brazil. Along with economic growth and spending powers of the big 186 million Brazilian population, this market will grow extremely fast and will have a positive impact on coastal property prices.
9. Active tourism promotion policy
Tourism promotion is a top priority in the Ministry of Tourism’s agenda and the National Tourism Plan is clearly working. Brazil has seen over 75% increase in foreign tourism between 2002 and 2008 as a direct result of the National Tourism Plan (developed in 2003). Learn more about the latest news from the Brazilian tourism market in our section about real estate news in Brazil.
10. The northeast of Brazil is the Nr. 1 area in receiving international investment
The northeast of Brazil will benefit from massive investments along the coastline. In the coming five years, billions will be invested in hotels, resorts and golf courses.
11. The northeast of Brazil benefit from the best climate on the continent
Located only a few degrees from the Equator, the seasonal variations are minimal with an annual average temperature of 27C and the weather is stable and sunny all year around. As a result, This area has established itself as the leading beach tourism destination in Brazil and its coastline is famous for its stunning tropical never ending beaches lined with coconut trees, lagoons and sand dunes.
12. Northeastern Brazil is the closest point to Europe from Latin America
Flight time to the region is only approx. 6.5-9 hours from most European cities. As a result, several operators have started direct flights and today tourists from Spain, Portugal, Italy, Scandinavia, France, England, Holland, Argentina, Germany and USA are all finding their way to this tropical paradise.
13. Brazil is a peaceful country
Brazil, though it is one of the worlds largest countries is rarely in the forefront of world politics, due to this it is not considered a target for terrorism. The nation has also enjoyed decades of democratic government rulership and is considered a very peaceful country without political tension. Brazil, though it is one of the worlds largest countries is rarely in the forefront of world politics, due to this it is not considered a target for terrorism. The nation has also enjoyed decades of democratic government rulership and is considered a very peaceful country without political tension.
14. The exchange rate is exceptionally favorable
At the moment the exchange rate is exceptional, making it very cheap for foreigners to buy property in Brazil. In the past, the Brazilian currency was artificially linked 1:1 to the US $, and most prices still reflect old price levels.
15. Extremely friendly people
Studies carried out by Ministry of Tourism indicate that 75% of the tourists who seek Brazil as their vacation destination do so first of all because of the natural beauty. But once they arrive here, they find such hospitality that they soon become enchanted with the mixture of colors, races and cultures of the people as well. In a recent survey, 96% of the tourists visiting Brazil definitely intend to come back again, the main reason being the Brazilian people! That if anything, gives confidence in the growing tourism industry in this exciting country.
16. Direct flights from the USA
Recently Americans has taken an interest in the area and flying time from Florida is only 6 hours. The northeast of Brazil now benefits from three major tourist markets: Europe, USA and the big and fast growing Brazilian market.
17. Complete lack of natural disasters
Compared to many tropical destinations, Brazil benefit from a complete lack of natural phenomena such as hurricanes, tropical storms, flooding, tsunamis nor is it affected by earthquakes.
18. Low cost of living
Brazil enjoys only about 20% of the cost of living in the UK. Compared to other more traditional destinations (Spain, France, Caribbean etc.), in Brazil you can afford a far more relaxed and luxurious lifestyle at a fraction of the price.
19. Brazil is one of the most tolerant and open countries to cultural differences in the world
Brazil is one of the most tolerant and open countries to cultural differences in the world
20. The purest air on earth*
According to research done by NASA, the northeast of Brazil has the purest air not only on the continent, but also in the whole developed world! *You have to visit the freezing plains of Antarctica to get anything more pure.
Brazil is a beautiful country Last but not least, Brazil is a very beautiful country and for many that is a major reason to buy a property in Brazil. It is often said that one picture says more than one thousand words…why don’t you take a look at our Property to check out the stunning scenery in Brazil – yet another good reason for buying Brazil real estate.
“Don’t wait to buy property in Brazil – buy property in Brazil and wait!”