Brazil Property Investment Still Looking Good

While recent figures on the property market in São Paulo in Brazil may show a decrease in sales, many investors still believe Brazil to be full of opportunities. The recent decrease may be just a correction after recent rapid price increases.

It’s estimated that the price of one-bedroom apartments in the city more than doubled between 2008 and 2010 while large properties increased between 40 and 65% during the same time period.

The majority of international investors are taking the view that prices are now more normalised and that this will be a sustainable market due to rising income, the discovery of oil, low unemployment levels and a commodity boom that is driven by the growing Asian market.

The president of Brazil Luis Inacio Lula Da Silva is confident that the country can achieve full employment which could lead to growing numbers of people aspiring to own their own home. Much of the recent property boom is thought to have been driven by demand from locals wanting to buy their own properties.

However there is a growing need for finance to be made more readily available to foreign investors and for a decrease in the amount of bureaucracy that is currently involved in buying property, but this does not seem to have deterred overseas investors.

The belief that the property market here will remain buoyant is attracting investors from emerging economies such as India, China and South Korea who are looking for good medium to long-term growth prospects and clearly think it is worth their while dealing with the bureaucracy.

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