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Brazil the Best All Round
April 29, 2010Article by Ray Withers
Brazil will overtake the UK on the league table of global economies by 2013 comes a new prediction from PriceWaterhouseCoopers. This of course is just the latest in a long line of news that confirms what we already know; the Brazil is one of the fastest growing economies in the world. In fact, according to the PWC report, it is one of the 7th fastest growing economies, in the so-called and newly anointed E7, along with Brazil, Turkey, China, India, Russia, Mexico and Indonesia.
Unsurprisingly, the Brazilian commercial property market is currently one of the best performing in the world, according to a new report by the Royal Institute of Chartered Surveyors. RICS said that Brazil had one of the highest transaction rates, but that, surprisingly, supply is not increasing.
This trend will not continue for long, according to recent reports a party from the Indian real estate community has been tourism Latin America looking for development and investment opportunities, no doubt they will see that demand for commercial property in Brazil is outstripping supply.
According to international property investment consultancy Property Frontiers, the residential sector is also doing increasingly well, and rightly so says director David Cox.
“The residential sector in Brazil is getting back to the good old days, well the holiday home market is certainly. And rightly so, when people buy a holiday home, most of them do so in the hope that it will appreciate in value. In the case of Brazil property that is a near certainty. Factor in the fact that you can get a supremo luxury 2 bedroom apartment right in front of 300m of private Brazilian beach for just £278k, and then you realise why so many people are paying close attention to Brazilian property when searching for an overseas home.”
The property being referred to by Cox is the Natal Ocean Club. A resort development of 1 and 2 bedroom apartments, and 1 and 4 bedroom villas priced from £138,000 for a 1 bedroom apartment. The resort is part of a holiday club, and as such the rental is managed, with expected yields of 12% and over from year 2 onwards.
Natal is to be a host city for the world cup, and owners of properties in the Natal Ocean Club will see record sums paid to rent their properties during this time. It will also do wonders for the local economy and may even cause price appreciation in its own right.