Property Investment Opportunities Abound in North East Brazil

OCEAN CLUB NIGHT

OCEAN CLUB NIGHT

The whole of Brazil is seeing unprecedented demand for property, as the middle classes continue to become more prosperous. But north-east Brazil seems to offer the best investment potential for overseas investors.

Prices in the south-east around São Paulo have increased by 30% over the last year. In certain areas, property is now more expensive than the US, and now some metropolitan areas are seeing a slowdown in the number of new developments.

São Paulo is the largest city and the financial hub of Brazil, so it’s hardly surprising that much of the property development has been centred on this city. This has led to a temporary overload in the number of new properties coming on the market, and some developers have chosen to postpone new projects. Experts think this situation is purely temporary, and local demand for new property will lead to further developments in the future.

However this is just part of the picture, and in the north-east of Brazil the property market is still booming. There is far more space to build in the north-east, and land prices are a lot cheaper. The middle classes in Bahia and Rio Grande do Norte are driving the property boom, and some of the lower middle classes qualify for the social housing program, Mina Casa Mina Vida.

This program has an allocation of 3 million homes nationwide, 34% of these units will be built in the north-east, and 37% in the south-east. Experts think the property market in Brazil has long-term potential, as so many Brazilians aspire to owning their own home, and as long as this situation continues there will be investment opportunities.

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Categories: Brazil Property / Property Invest

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