Investors looking to spread their wealth overseas next year would do well to target Brazilian real estate, according to a new survey.
While the USA remains the favorite choice for real estate investors, the sunnier climes of Brazil are fast catching up, says the 20th annual survey of Association of Foreign Investors in Real Estate (AFIRE).
Brazil has jumped to the number two spot on the list of top nations for capital appreciation, rising up from the fourth place it held one year ago. The South American nation moves above China, whose real estate sector has slowed down significantly since the implementation of government regulations to stop the market there from overheating.
Sao Paulo in particular, looks to be very attractive as far as investors are concerned. The city shot up the list of most desirable cities to invest in, rising from 26th in the world to number four in the latest ranking.
So what is it about Brazil that is making the country such a magnet for investors (apart from the beaches and the babes!)?
According to real estate pros, there are a number of factors contributing to the impressive growth of Brazilian real estate, the biggest of which is the country’s tourism boom. This has led to a huge demand for vacation homes to rent, especially in cities like Sao Paulo and Rio de Janeiro where the demand for rentals is outstripping supply. For those with the cash to spare, new-build properties in particular are looking like the perfect low-level market entry point.
Aside from this, Brazil’s economy is also doing pretty well right now, in contrast to those of the US and Europe. Throw in the great weather, a strong level of capital appreciation, the cheap cost of living, the FIFA World Cup 2014 just around the corner (and the girls!) and there is every reason to see Brazil as the ideal mid-to-long range investment.
You know it makes sense 😉
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