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Brazilian Property To Become Big News

November 9, 2009Article by Ray Withers

Brazil property is the big story for 2010 and into the foreseeable future. During the course of the next few years, investment in Brazil property is set to sky rocket. This is because it is becoming apparent that Brazil is going to become an economic giant, causing prices and rents to grow massively during this time.

The fact that Brazil has been selected to host not one but two of the world’s largest sporting events can only stand to boost this amazing growth in Brazil property investment.

Brazil has been talked about as a major player in the global economic scene, with the potential to become one of the world’s economic giants. This is because the services sector began to grow rapidly in the last few years, which added to its massive agricultural sector, which is in the top 5 in terms of export volume for many agricultural products, including head of cattle.

Then a major oil field was discovered buried under sea, sand and rock off the coast of Brazil. This quickly removed any doubts about just how much the economy was going to grow, and how wealthy the country was going to become.

In comparison to all that, Brazil winning the honour of hosting the world cup in 2014, and Rio de Janeiro the Olympics in 2016 is almost small news. It is not often that one can say that about any country, let alone an emerging market like Brazil.

All these factors have put Brazil property high on the shortlist of every Real Estate Investment Trust, Mutual Fund, and any other kind of investment fund interested in making money for that matter. But it has also put it on the short list of private investors, who then must wrestle with the potential downsides.

Brazil has a very high crime rate and there is a lot of corruption. However, most of this can be explained by the distribution of wealth problems in the country. So, if the increased wealth from the exports of oil is used wisely, then those problems will be sorted as an indirect result of the increased affluence of a larger proportion of Brazil’s population.

Those problems only apply to those investors who wish to use the property themselves, or who are relying on a certain level of rental occupancy in order to be able to afford the purchase financially. For anyone investing purely to make a capital gain — as a large proportion of Brazil property buyers will be in the coming years — then these are not such big issues.


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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