New homes in Brazil



Economic and political situation. Real estate investment in Brazil.

With a population at about 188 million people, 7,000 km (4,500 miles) of coast and an approximate 20 % annual growth of its Real Estate market, Brazil is an emergent destination where profitability has increased in the last years.

Brazil is politically stable. Economic growth is still positive and constant through similar policies carried out by two presidents (Cardoso and Lula da Silva) in the space of the last 14 years.

Brazil has economic and political stability.
Its currency is the Real (BRL):

1 USD = 2.26 BRL (aprox)
1 € = 2.46 BRL (aprox)

Spain is one of the main European countries that contribute with resources in the Brazilian housing market.

Socially, Brazil has made strides toward reducing poverty and expanding the middle class. The most recent effort was "My House My Life" plan, which aims to afford to buy their first home to 1 million people a year, thus eradicating the 8 million housing deficit in the next 8 years.

Economically, Brazil is self-sustaining in every way. Recent discoveries of oil reserves have increased by 50%. In June 2009, amid one of the worst global recession in recent history, Brazil has been able to settle its debt with the IMF. This is a decisive factor for investors interested in investing in Brazil.

Real estate investment in Brazil

At a large scale, the investment in the coast of Brazil depends on the foreign investment, which is what lead Brazil into its touristic ‘boom’. This has experienced a high increase in prices and a potential growth in new construction.

Brazil’s residential market is among the safest, where its investment procedure is quick and its demand keeps growing (as it helps to develop the mortgage market).

Natal is still the destination with greater opportunities to make a real estate investment. Its main attractions, from the point of view of real estate investment , are building a new football stadium which will host the next World Cup of 2014, with the resulting new infrastructure, including a new airport (granted by FIFA). These improvements result in very great opportunities for investors.

The Standard and Poor’s Agency granted Brazil in 2008 with the Investment Grade, which indicates foreign investors about a country’s risk. This indicator determines that Brazil:

• Has a positive economic evolution.
• Pays its debt (improvement in the external accounts of the country).
• The Brazilian government has among their priorities the country’s economic development, by applying prudent macroeconomic policies, tributary reforms and an intent to increment household savings.
• Has an expanding housing market, ideal for investment.

The buildings have high possibilities of increase in their value:

• Due to the appreciations generated in the deals.
• Due to the benefits generated by the guaranteed contracts of rent.

Steps to invest in Brazil

1. If possible, to be a promotion close to an international airport.
2. Choose a touristic area with promotions near the cities, whose main public are Brazilian buyers that are seeking for a second residence.
3. Buy in urbanizations where developers have already acquired the licenses and legal permits demanded by law to avoid speculation.
4. The investments made by foreigners are allowed only with restrictions in relation with; the rural property, coastal lines to 300 meters, in islands and frontier zones.

he major touristic investments occur in the state of Ceara (Fortaleza), where buildings have grown 30% in value in the last 12 months.

Useful links

• Brazilian Government Web Portal
• The Hip Guide to Brazil
• Know Paraiba, invest there

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