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News: Brazil welcomes foreign influx

Thu, 22 Nov 07

Brazil continues to benefit from Increasing tourism and growing foreign direct investment...

Added to that, Brazil’s tourism industry is booming, with a 134% increase between 2002 and 2007. Going forward, the government is focused on reaching a target of 9 million tourists each year. With more and more people visiting the country, the demand for short-term rentals is also increasing, further stimulating demand for Brazil property investment.

A large number of quality resorts and developments are currently under construction in and around the north east coast, more notably in Natal and Maceio. However, there is still a shortfall in the housing market, with demand outstripping supply, equating to a shortage of approximate 8 million properties.

Growth acceleration package

However, in a bid to tackle the shortage, the governments ‘growth-acceleration package’ includes a housing and infrastructure investment of US $236 billion for the next four years. This demand has already elevated property and land prices considerably, and Brazilian officials have certainly welcomed the influx of foreigners choosing to holiday, live, or invest in Brazil property investment.

Rolf Hackbart, President of Incra comments, "Foreigners have fuelled a real-estate boom, buying farmland along Brazil’s expanding agricultural frontier and second homes along the north eastern coast."

The Mayor of Luis Eduardo Magalhaes, Oziel Oliveira, recently highlighted that a number of foreign people have set up farms in the area, thus aiding an ever-increasing economic growth with produce and improving land values. He added that he was aiming to attract more foreign investment, the proceeds of which could go towards improving and expanding the region's transport network.

Boosting exposure

Mr Oliveira commented: "This was land that was practically all savannahs or grasslands which is now being occupied and has brought an economic benefit for us all."

Brazil property investment is a strategic addition to a property portfolio. As a tourist’s playground, the rental potential of property in Brazil is tremendous, due to the year round market. The interest from overseas investors has certainly boosted the exposure to overseas property ownership and along with the government’s tourism backing Brazil property investment is certainly a very lucrative market.”

For more information visit: http://www.obeliskinternational.com.

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