In recent years Brazil economy and politics have radically changed, making the country a rising star of South America. With a new currency the threatening inflation has been significantly reduced. The economy is now stable and is rapidly growing each year. As a result, Brazil is predicted by economic experts to become one of the five world dominating economies within the next decade.
Reasons to buy property in Brazil
The Brazilian government has been putting an enormous effort into encouraging foreign buyers to invest into Brazil’s real estate market. This led to a straightforward and restriction free purchasing process for foreign investors. Everybody can buy real estate in Brazil, regardless of whether the purchaser is a resident of Brazil or not. The only restriction applies to property in rural areas or on boarders to other countries which only residents of Brasil are authorised to purchase.
Investments are granted with very attractive tax options, like a 0% purchase tax or tax reductions for non-residents. In addition all properties are sold on freehold basis, meaning that the buyer gets a 100% land ownership.
With investments in the tourism sector being another top priority of the Brazilian government, the demand for holiday residences and vacation villas is constantly growing. Due to a visa policy which provides permanent residence permits to retirees with a certain pension rate, the demand for retirement communities offers another investment opportunity which is not subject to seasonal influences.
The demand for housing in general is very high in Brazil. Currently the country is lacking over 8m homes, with the number increasing. This will lead to a massive housing construction within the next years thus offering enormous potential for investors who do not intent using the property for themselves.
Where to buy property in Brazil
Brazil has currently one of the fastest growing property markets in the world. It offers a wide variety of property suiting every taste and budget. For now property prices are considered to be low but experts claim that within the next couple of years prices will double.
With a coastline of over 7000 kilometers, Brazil provides plenty of beach housing to a reasonable price, depending on the area. Currently the area which is considered most promising for investment in Brazil is the North East (including the states of Bahia, Alagoas, Pernambuco, Paraíba, Rio Grande do Norte and Ceará). Property prices in this part of the country are already booming but are still on such a low level that an investment will most probably pay off.
If you intend to buy property in the larger cities prices will be considerably higher but still below European and US level.
However, it is worth considering investing into affordable housing in order to let the property to Brazilians and Brazilian residents who are not only looking for temporary housing. The price for these houses or apartments will be much cheaper than for luxury holiday residences and the rental earnings will be reliable.