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The Rush Is On To Buy Brazil Property
October 2, 2009Article by Ray Withers
As most people will know, Brazil was recently chosen to host the 2016 Olympic Games. This is great news for Brazil property, especially given that Brazil is also to host the 2014 World Cup.The Brazilian property market already had a bright future: the Brazilian economy is forecast by leading economists to grow into the fifth largest in the world within 10 years, while property is currently among the lowest priced in the developing world.
Thus, in the next 10 years property prices are almost certain to grow to similar levels as we see in the world’s largest economies. A growth of between 100% and 200% is widely forecast over the next 10 years.
That was before Brazil won the honour of hosting two of the world’s most important sporting events — perhaps the two most important. The potential rental income for an apartment or villa close — within 30 mins by car — to one of the stadiums is limited almost only by the imagination. Make no mistake: there will literally be a rush on to buy Brazil property over the next 2 years and prices will be driven up considerably.
Property now being sold off plan, but that will be completed in time for the event(s) will also be very popular, because of the discount traditionally offered to compensate for the perceivedl risk of buying off the plan.
Natal is proving to be particularly popular in the run up to the World Cup, because it is one of the host cities and offers great value for money. That is according to Property Frontiers, sourcing manager Ben Jeffries said:
“We have seen Natal’s popularity grow exponentially since it was announced that Brazil’s World Cup bid had been successful, and then that Natal would be one of the host cities.
It’s like Brazil getting these two major events has taken away any last doubts people may have had about investing in Brazil, and what would have been enquires a few months ago are turning into sales — people don’t want to miss the boat on low prices.”
“We are seeing considerable interest in the Natal Ocean Club development, little wonder with its 300m of private beach, managed rental at 15% yields and prices from £138,000 for a 1 bedroom apartment,” he added.