Why Brazil?
Why should you invest in Real estate and property development in Brazil? Below you’ll find the economic, general and natural factors, why investing in real estate and property development in Brazil is one of the best foreign investment opportunities.
Economic Factors
- Top ten largest economies (predicted to be top five by 2025)
- GDP:US$1,3 trillion
- GDP annual growth: 5.4%
- GDP per capita: US$7,000
- US$ 200bn in international reserves
- One of the biggest producers of agricultural and mineral commodities.
- Renewable sources: 45.8%
- Sugar cane: 15.7% (became the second main source of energy in 2007)
- Hydroelectric: 14.9%
- Wood: 12.0%
- Oil: 37.4% (Petrobrás Exceeds Biodiesel Production Goal in 2008)
- Natural gas: 9.3%
- Ethanol production has exceeded 22 billion liters per year, which makes Brazil into the world's second largest producer country
- BG Group plans to invest up to $1.25bn (£862m) a year in Brazil over the next four years as it develops its share of the world’s most exciting oil discoveries for many years (FT Jan 2009)
General factors
- New Mortgage Laws have recently been introduced allowing locals to acquire mortgages.
- Land Ownership Laws: Ownership is far more secure in Brazil than in other Latin American destinations.
- Easy access from Europe and North America: The Government is investing heavily in supporting tourism projects by financing major utilities and infrastructure projects including renovation of old airports and building new ones.
- Outstanding currency appreciation: In 2002 Brazil’s currency was about 4 to 1 to the US dollar; recently less than 2 to 1 US dollars. The Brazilian reserve reached $101 billion in April 2007.
- Large domestic population of 190 million people, many of whom will embrace credit and mortgages.
- Emerging real estate market where there currently is a deficit of 7.9 million houses. Forecast that in three years real estate loans will rise from 2% to 7% of the GDP – 39.5 to 163 billion.
- only 2% of the population holding mortgages
- fast-emerging middle class grew by 7m last year
- shortage of 8 million homes
- properties can be purchased as 100% Freehold
- tourism market continues to grow steadily
- Easy access from North America and Europe
Natural Factors
- Best beaches in the world with fantastic tourism potential.
- 7500km of coastline
- Represents 47% of the landmass of South America
- world-famous beaches
- year-round sunshine
- Over 7,000km of white sandy beaches along with palm trees, the Brazilian coastline offer visitors a truly Tropical environment. Great for water sports and also home to the great Rain Forests and the Amazon River.
- Brazil does not suffer from hurricanes, nor is it ever affected by earthquakes. Temperatures remain almost constant throughout the year, with averages in the north east of 27ºC.
- According to NASA, north east Brazil has the second cleanest air in the world, second only to Antarctica!