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Brazil To Benefit Most From Emerging Markets’ Return To Grace

December 23, 2009Article by Ray Withers

Brazil property will benefit from increasing appetite for risk, as well as the levelling off of international property markets throughout 2010, according to experts.

Currently commercial, retail and private investors are favouring established markets, a: because the price reductions give instant equity (in most cases) and b: because investor’s appetite for risk is still battered the events of the last two years, which are still fresh in everyone’s memory. Both these things will be reversed in a gradual process throughout 2010, and beyond, and Brazil will be one of the biggest benefactors of this change, according to international property investment consultancy Property Frontiers.

Ben Jeffries, a sourcing manager with the firm said:

“No one can deny that investors in all classifications are favouring established markets with the downturn still fresh in our memories. Look at the latest research from CB [Richard Ellis] RE, 47% of retail outlets planning to expand are planning on entering Germany. At the height of the boom, emerging markets were all the retail rage, now they are favouring the never spectacular but always safe Germany — says it all really.

“Not that I blame them. However, confidence is growing again, and people are starting to look at the safer of the emerging markets like Brazil again. This trend will continue to grow throughout 2010. Because Brazil property (http://www.propertyfrontiers.com/International-Real-Estate/Country/Brazil.aspx) currently has such a powerful outlook, it is likely to be among the biggest benefactors of emerging markets return to grace.”

Jeffries also said that Brazil hosting the World Cup in 2014, and the Olympics in Rio in 2016 would be a factor in its increased popularity in the coming years, as well as its incredible potential for economic growth on the back of massively rising tourism, massively growing services sector, and the recent discovery of oil in Brazilian territory.

Property Frontiers are currently marketing one of the finest properties for sale in Brazil. The Natal Ocean Club represents the pinnacle in modern design and luxury, set in 20 acres of tropical gardens and with over 300m of private beach. The development offers Chic villas and condos with exquisite décor and cliff-top views at prices starting from £138,000. A 12% yield is being forecast for year 2 of ownership.
Natal will benefit massively from being one of the host cities of the 2014 FIFA World Cup both in terms of economic growth, and demand for accommodation, which will push up rental incomes.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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