The positivity surrounding Brazil property, building it up as one of the top investments of our age is still showing no signs of abating.
In fact it has just recently been vindicated: Sao Paulo-based Brazilian Company Property Studies, (AKA Embraesp), has found a 22 per cent increase in the price per square metre of property in Sao Paulo in the first four months of 2010. This, a growth of 51 percent on 2009 prices is a massive testament to the incredible growth potential of Brazil property in the north east, especially as it is during a global recession.
It is little wonder that Sam Snell, one of the world's wealthiest and most prominent real estate investors has just announced that he plans to put another $500 million into the Brazilian property market, to focus on the emerging markets in the north east of the country.
Last year Snell made the news when he said that he didn't think there was a better environment for investment in the world than Brazil. At the time Snell was only announcing his intention to enter the market; he now operates six Brazilian property companies.
Brazil property is currently such a hot-investment, because the economy just has everything going for it; everything to suggest massive growth in the future, and very little to put a dampener on that growth.
Companiesandmarkets.com has recently pinpointed surging consumer demand as being a big driver behind future growth. This is the first time a research report has pointed to domestic demand, as most focus on exports, the services sector and the fact that Brazil is to host the World Cup and Olympics as drivers of growth.
It makes sense though; we would be foolish to think that all this positivity exists only outside Brazil. Inside Brazil right now, consumer confidence is likely at an all-time high, and increased consumer spending is a logical outcome of this.
Brazil property is equally well positioned for growth. Economic growth will automatically breed property price growth, as it pushes up the price of materials and labour. However, when you look at the economic growth in Brazil's future, you can't fail to see the potential for a massive increase in demand for housing, and for second homes as the population becomes more affluent. Add the massive growth in tourism, which can only be fuelled by the sporting events, and you can see why Brazil property is so hot with foreign buyers right now.
Like the big-hitters and the economic growth, the north east is most popular with foreign buyers, with Natal one of the major hotspots.
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