INTERNATIONAL
IsBrazil going nuts
Andrea Kirkby tries to crack the conundrum of Brazil’s rising market.
W
ith previous ‘hot’ markets in disarray, estate agents and property investors might be forgiven for sticking
their heads firmly in the sand. But meanwhile, a few markets are defying the global trend to depression – and Brazil is perhaps, the foremost. As David Cox, director of Property
Frontiers, explains, Brazil benefits from a unique set of circumstances, a fast growing economy, recent significant oil discoveries, its selection to host both the football World Cup and the Olympics, and a WTTC forecast for 5.3 per cent annual tourism growth between now and 2017. Brazil is also experiencing the growth of an affluent middle class, which is driving the demand both for high end property in the cities, and for second homes along the coast. Besides its economic advantages, Brazil
benefits from all the attractions of a superb holiday or retirement market. Beach and coastal properties are a particularly popular sector. Richard Cash of Invest In Brazil says, “It’s a retirement lifestyle dream, an affordable cost of living together with year round sunshine.” The cost of living is about a fifth of what it is in the UK. He believes the underlying fundamentals
for the property market are also good. “The country has very affordable properties and a huge housing deficit.” Studies put that deficit as high as 10 million homes, and a growing population is increasing demand.
New INfrastructure Cash notes, too, that with the Olympics and World Cup coming up, “There’s a lot of money going into infrastructure,” such as new airports and roads, which will add value to properties. Invest In Brazil certainly seems able to find investors willing to listen to the story;
26 OCTOBER 2010 PROPERTYdrum
it’s selling 30 to 40 units a month at its current development, the Tambaba resort. “We’re really busy,” Cash says, “and a good per centage of enquiries are turning into purchases.” That’s borne out by news from
Moneycorp, the foreign currency broker. While in 2004 it only saw £4m sent from the UK to Brazil for property related transactions, that increased to £30m in 2009. Then in the first four months of this year, real estate related currency enquiries rose a further 40 per cent.
Once a magnet for jet setters and villains, Brazil is the latest investor honeypot.
rio de janeiro rio de janeiro
Brazil is a retirement lifestyle dream, with an affordable cost of living together with year round sunshine. The cost of living is about a fifth of what it is
in the UK.’ rIchard cash INvest IN brazIl
There’s also been a change over the past
couple of years in the type of British buyer who’s willing to consider Brazil. Typically, Brazilian property was a lifestyle purchase, year round sunshine, sea and sand. But Samantha Gore, sales manager for uv10. com, says the country is now attracting investors who want to cash in on the country’s growth prospects; “initially our client base was rather lifestyle-heavy, but we’re now handling more and more pure investors.” Prices are reasonable even at the top end
of the market. David Cox says, “Factor in the point that you can get a supremo luxury 2 bedroom apartment right in front of 300 metres of private Brazilian beach for just £278k, and then you realise why so many people are paying close attention to Brazilian property when searching for an overseas home.”
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