Buying Property in Brazil – making hay while sun shines
First Published Date: May 29, 2016
With its fast expanding economy, Brazil is now being counted in the top 10 largest growing economies in the world (currently at the 9th position but quickly gaining in ranking). The Investment Grade bestowed on Brazil in 2008 has further boosted its economic position and the real estate in Brazil is selling faster than hot cakes.
Why Brazil?
Investment in Brazil accounts for more than 40% of the total GDP of South America. Major contributors to the economic upliftment have been the manufacturing industries and the production of ethanol, in which Brazil stands at no.1 position. The recent discovery of oil and gas reserves in the country catapulted the country’s self sufficiency in energy and also opened up the doors of economic
stability. The first thing that such stability and economic boom has on is the interest rates on loans which at present in Brazil are running at an all time low. With a controlled inflation level (in fact by maintaining the rate at 5.7%, President Lula has created an all time low record); the private sector industries are thriving with the flood of investment.
On the other hand this economic boom and development has led to severe shortage of real estate in Brazil. While there is already a deficit of over 8 million housing units, the growing middle class is further crunching the demand and supply chain. The silver lining is the rise in availability of mortgaged real estate. In fact many Brazilians for whom owning a house was a distant dream, the economic independence combined with the mortgage products has opened new vistas.
International Standing
Brazil will be hosting the 2014 Football World Cup. There is little doubt on how such events can positively impact the host country’s developmental abilities. Such mega events mean sizeable increase in revenue from tourism and hospitality and huge investment ininfrastructure and tax base.
Some of the other facts that have helped the boom of real estate in Brazil are
· Affordable cost of living (just twenty percent of what you would spend to live in UK or Europe)
· Predicted increase in the property price by at least twenty percent
· Active encouragement by the government towards foreign investment
· Currency exchange receiving a favorable response which means foreigners will find it more lucrative to invest in Brazil
· Low maintenance costs of the properties
· Improved travel infrastructure – the air network between cities in Brazil is fast expanding and also many direct flights to US and Europe have been introduced
· Active encouragement of tourism – thanks to the dedication by the government tourism has increased by 100% with the creation of over two hundred fifty thousand jobs for Brazilians
· Warm and welcoming environment – Brazil has sunshine round the year with day time temperatures at a comfortable 27 degrees centigrade. Add to this natural beauty and fantastic scenery and Brazil is just a heavenly place to stay in. Brazilian people are known for their friendly nature and their rich culture what with all the vibrancy in the cities and the revelry at the carnivals and music festivals held each year with great pomp and fuss.
· The most important aspect, especially in today’s world would be the low risk that Brazil faces from international terrorism and war
Which real Estate in Brazil to invest in?
João Pessoa in north east Brazil with beautiful beaches and an exciting lifestyle provides many opportunities for the investors. Thanks to JPA international Presidente Castro Pinto Airport, João Pessoa has easy accessibility from all over the world as well as well connected to the other cities of Brazil. João Pessoa has a rich history still visible in the stunning architecture, ancient temples, historical finds and fine baroque structures.
Coming to the present era, João Pessoa is filled with beautiful white sandy beaches lined with palm trees as well as tiny islands. The highlights include Tambaa, Manaíra, surfing beaches like Oiteiro and Campina and the nudist Tambaba beach. Riding on the buggy strolls that connects to the beaches one can enjoy the mesmerizing sunsets or revel in the nightlife in the numerous bars and clubs. People with a green thumb will particularly find this part interesting – João Pessoa is world’s 2nd greenest city. The squares and parks keep the city center green and the residential areas are filled with ornamental and fruit plants and trees. One of the main sources of income here is the rapidly developing tourism industry and this natural beauty having the friendly and safe reputation is also a
hotspot for Brazilians to settle down in.
Another place worth exploring is the Queen of the plateau – Campina Grande. All round the year various cultural events are held here which is also the main attraction for most tourists visiting the country. One of the major events held here is the São João festival held over the whole month of June. Numerous little huts spring up in the city’s main park Parque do Povo during this festival where regional crafts and foods are on display and sale. The month of July is witness to the Winter Festival which features traditional singing, theatre, dancing, music, cinema and merriment. Another small festival that takes place in March is the Micarande carnival. But Campina Grande is not only about festivals. There is also an artificial lake in Boqueirão where swimming, boating and fishing takes place while the nearby forest region gives ample opportunities of mounting biking.
The other seaside town that is popular with investors is the pretty and quaint Jacumã. A sleepy fishing village, local and international tourists flock this town to enjoy the beautiful beaches which are rated amongst the best in Brazil. Jacumã has a tranquil cove setting and is especially child-friendly making it ideal for swimming and bathing and thus a favorite spot for holidaying families. There are also little sand dunes in the area where one can play skybunda (sliding on the dunes on boards). From the investment point of view, Jacumã is the place to lookout for as the government pumps in millions for improving the infrastructure and putting up shopping malls, supermarkets, golf courses and holiday resorts of international standards.
