Worldwide, Brazil real estate interest is intensifying since Brazil has successfully stabilised both its economic and political standing in recent years - as a result the country is now beginning to benefit substantially from international property investment. It is also a country as incredibly fascinating and beautiful as it is huge; it is in fact the fifth largest country in the world, it borders every single South American country apart from Ecuador and Chile and it has the 10th largest GDP in the world.

The majority of new real estate developments taking place are along the country’s Atlantic facing 7,491 km of coastline and it is along the coast that the majority of the country’s circa 186,112,794 citizens also reside.  Some areas of Brazil benefited from up to a 20% rise in real estate prices last year alone and the future for the entire property sector is very bright. 

The official language in Brazil is Portuguese and if you’re considering making a real estate purchase and moving to the country full time you’ll get far further in your every day life if you learn the language.  If you’re simply interested in making an investment you’ll find that English, Spanish and French are widely spoken and understood particularly in the legal sector and the property market making purchase transactions straight forward.

Brazil is famous for the Amazon River and Jungle of course; the latter is home to a unique mixture of rare and beautiful flora and fauna and the rainforest and river attract record numbers of visitors and explorers to the country annually.  The temperatures in the country rise as you travel from South to North with weather in the North East perhaps some of the best in the entire country - expect year round sunshine!

The scenery and beaches in Brazil are quite simply breathtaking, the cost of living is up to 20% lower than the average UK or European equivalents, property prices are incredibly cheap and the country is highly accessible with daily flight from the UK, US and major European countries available.

The Brazilian government encourages foreign investment, allows for foreign freehold ownership of land and property and has succeeded in reducing inflation in the country to record lows.  The country’s currency is competitive, the economy is stable and 2004 and 2005 have seen strong and sustainable increases in GDP.

The country offers lifestyle options to suit everyone - for the sun seeker there are private and clean beaches in abundance, for the retiree there are gated communities with communal amenities and facilities, for the adventurer and great outdoor lover the ability to truly get away from it all in Brazil’s highly undeveloped interior is a draw.

Quite simply Brazil is one of the most exciting and fascinating countries in the world with an emerging real estate sector that already offers great investment potential and property ownership opportunity.

Since Brazil’s new administration took office in 2003 the government has succeeded in creating an economy ripe for foreign investor interest and promoting a fiscal and political environment conducive to growth. These factors alone mean that the real estate sector in Brazil has become far more attractive to overseas investor interest and as international tourism numbers increase and retirement communities are established in Brazil, so the breadth of opportunity for investment is widening.

Local and international confidence in the Brazilian administration has grown rapidly since 2003 and this confidence has been based upon the government’s sustained and so far successful policies to create a far more resilient economy with reduced inflation a stable currency and strong export performance. 

In 2004 the Brazilian economy out performed all expectations for it and the GDP real growth rate was up 5.1%.  In the same year inflation was significantly reduced and expectations for 2005 predict that inflation will further decline.  2004 also saw real estate prices increase by as much as 20% in the North-eastern region of Brazil where investor focus is particularly strong.

The Organisation for Economic Co-operation and Development have highlighted three interrelated areas for the Brazilian administration to focus on and target for the on-going success of the country’s economy; currently the government are working on strategies and reforms to ensure these areas are targeted appropriately.  The areas are: -

1 Improving the quality of fiscal consolidation,
2 Enhancing the investment climate, and
3 Improving the cost effectiveness of social programmes.

As mentioned, the North-eastern coastal area of Brazil is already enjoying increased investment focus.  This area of the country has seen record real estate price gains in the residential and commercial sector as retirees, second homers, tourists and now international businesses flock to this area.  The former three groups are attracted by the near perfect climate and stunning natural landscape, the latter group are attracted by the lower labour and overhead costs in Brazil.  The demand for property for sale and rent and investment real estate deals in this region of Brazil is intensifying and so prices and potential returns are increasing.

As the Brazilian currency has recently stabilised and become far more competitive with other international currencies such as the US dollar, so this has increased overseas investor’s purchasing power in Brazil.  The competitiveness of the currency means that international businesses from the US and UK who are establishing themselves in Brazil are able to operate with far lower overhead costs and improve and increase productivity and profits.  International expatriates who relocate or holiday in Brazil are also finding that their money goes far further making it an affordable tourist destination or a cheap retirement country.

Brazil always offered real estate investors a stunning country in which to invest with beautiful beach front properties particularly popular to buy and let out to tourists or resell to retirees; but as the Brazilian government work to create a competitive and stable country with attractive investment incentives available to individuals and companies who choose to commit to Brazil’s future, so investment into Brazil’s property market becomes a far more attractive opportunity.  The level of overseas interest in property for sale in Brazil is therefore at an all time high and simply set to increase.

You can still bag a bargain in Brazil because property prices are much more affordable in Brazil because of a combination of demand, underlying land costs, construction costs and risk.  Demand is relatively low at the moment, but as it increases, so costs should rise.  Land prices are also cheaper compared to many locations across Europe for example, construction costs and commodities have so far been affordable but are now rising, and anywhere where there is risk and a market is not tried and tested, prices will reflect this.

So, can Brazil’s property market continue to boom?  Yes, because Brazil has incredible potential – possibly unrivalled potential at the moment.  It has an incredibly astute and tough government that is doing all it can to maximise and stabilise the economy.  Brazil has a great wealth of natural resources and commodities such as oil that form a great foundation upon which an incredible economy can be built.  The middle classes in Brazil are growing in wealth and number as a result of the nation’s economic advancement and demanding properties for sale and rent…this all bodes well for the long term stabilisation and affluence of the nation.  Buyers who buy in now could well ride this wave of success.  However, naturally Brazil is not tried and tested in this way, therefore there is risk.  So where there is huge hope and great risk, there is naturally the chance to make huge gains or spectacular losses – that’s what makes Brazil very exciting for many property investors!  For others it’s more about the weather and the lifestyle!  Brazil is a fabulous place for a holiday, and because great investment is being poured into the advertisement of this fact internationally and also into infrastructure to ease accessibility to the nation and to improve amenities and facilities, Brazil offers property owners a double bonus.  On the one hand a property could be a fabulous investment and on the other hand a property makes for a great place to stay in a fantastic nation!

Now may be the best time to buy Brazilian property as the effects of the global economic recession have created bargains in the market and the country has been named as one of the top five areas for investment, according to an expert.

According to Real estate portal Propertyabroad.com, Rio de Janeiro and Natal in the north-east are the two of the best cities in the world for buying a home. The website refers to the predictions that the South American nation is set to become the fifth largest economy in the world in the next ten years, with Brazil real estate values set to follow suit.

Properties in Rio are still available at a fraction of the cost of comparable properties in the world's major cities like Paris, Rome and London. The portal added that the cheapest apartment in London is over £150,000 whereas investors can buy a 3 bedroom house in Natal for £120,000.

Meanwhile, Les Calvert, director of Property Abroad said that the economic crisis has led to bargain Brazil real estate coming onto the market for savvy investors, who are also likely to see values double over the next five years.

Thomas Shapiro, president of GoldenTree InSite Partners, said in Global Real Estate Summit that a recent 104-unit development in Sao Paulo sold out in four hours, showing demand for Brazilian property is picking up. The economy looks better than expected for the coming year, Mr. Shapiro stated, according to Reuters reports.

His views back up comments from Steve Worboys, director of Experience International, added that an increasing number of investors are realizing the potential of property in Brazil.