Wed, 30 May 07
Brazil's property market is fizzing with excitement this week with news of unprecedented activity in its construction and housing sectors...
Property in Natal, the country’s ‘Caribbean Coast’ and the capital city of the State of Rio Grande do Norte, is witnessing huge growth in its infrastructure and set to receive 1.8 billion US dollars of investment into new hotels, resorts and golf courses and major new airport, reports Nubricks.com.
A recent survey by the Institute for Applied Economics Research showed that Natal is the safest of all Brazil’s regional capitals when it comes to personal risk, part of the area’s huge appeal as a retirement destination or for a second home investment.
Coupled with a strengthening currency, a popular re-elected President in the shape of Luiz Inácio ‘Lula’ da Silva, not to mention some of the best beaches in the world, the massive success story of Brazil as an emerging real estate market is one to be taken very seriously indeed.
Employment rates ‘soaring’
Brazilian employment rates last month registered the strongest growth in 15 years, with a total of 301,991 jobs created in April, up 31.4 percent from 229,803 for the same period last year. This signals the largest employment growth the General Register of the Employed and Unemployed (CAGED) has verified since it was created in 1992.
Brazil’s popularity is undisputed, with floods of tourists enjoying the country’s unique combination of great climate and environment and extremely low cost of living, with many areas retaining that golden ‘untouched’ feeling.
Increasingly seen as a viable alternative to the European property markets, the resulting high rates of occupancy mean that the Brazil property market has something to offer any property investor.
It’s no surprise then to read that it’s the financial analysts who can’t get enough of Brazil and its continuing success: economists at the mighty Goldman Sachs even invented an acronym in 2001, BRICs (standing for Brazil, Russia, India and China) in order to name and track the phenomenal growth seen and predicted to continue of this bullish group of four.
BRIC economies ‘leading the way’
They have predicted that, by 2050, the BRICs economies will grow so large that they will each become members of the largest economies in the world. It goes without saying that, if the four pursue good economic policies, incredible returns are to be had.
In the past, social problems such as poverty, human trafficking and governmental corruption dissuaded buyers. However, the world can see the changes happening in Brazil as it actively courts international attention.
Foreign exchange specialists Currencies Direct’s Global Emerging Markets Index showed Brazil climbing to 9th place in the top ten places to invest, noting the country’s large and well-developed agricultural, mining, manufacturing and service industries, a large labour pool, and relative Latin American wealth.
Nonetheless, Brazil is still a developing country and therefore there are positives and negatives to be aware of in the country’s property game.
Back to: News Index