Brazil:

Property Investment

Should you invest in brazil?

Contents

Should You Invest?

Returns on investment are considered superb and investors are becoming increasingly aware of the high growth potential that Brazil offers as a stable though fresh, new investment market.

  • Active encouragement and incentives for foreign investment - you can own 100% of land and property.
  • Cost of living is only 20% of that in the UK/Europe and property maintenance costs are also extremely low.
  • Some of the lowest property prices in the world.
  • Increasingly, thriving manufacturing industries are relocating to Brazil and boosting the economy.
  • Year-round sunshine, with average summer temperatures of 21°C.
  • Great natural beauty with fantastic scenery and 7,000km of beaches.
  • Easy access via direct flights from many international airports.
  • Pro-landlord rental markets- with high rental yields in major city centres.
  • Large tourist industry also increases the demand for short-term rental.

Rental Yields

A 50 sq.m. apartment in Sao Paolo can be expected to yield 9.6% per annum. Larger sized units generally have lower yields, from 5.4% to 7.2%. Yields for apartments in the suburbs of Sao Paolo are between 4% and 8%.
Properties in Rio de Jainero are slightly more expensive than in Sao Paolo, but they also fetch higher rents and return higher yields; from 7.5% to 9.6%. Yields for apartments in other cities such as Fortaleza, Bahia and Brasilia are around 4% to 7%. Smaller units generally have higher yields.

 

Price History

Prices in Brazil have been relatively unstable over the past few years, and Brazil experienced a decrease in property prices after the devaluation of its currency in 1999. In the four years leading up to 2005, property which had previously been sold for R$150,000 (£38,000/$65,000) went down to less than R$100,000 (£25,000/$42,000). Prices are therefore still relatively cheap but with the economy now stable there is a strong basis for property prices to climb again. Prices for a detached villa start at around £15,000, although a significant premium will be added to property close to Rio. Prices are also higher in the popular regions of North-East Brazil.

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