brazil economic strength to boost property prices
News Posted On: 01 October 2009
The continued economic resilience of Brazil has led to optimism that house price growth will continue this year, despite the economic downturn.
Today, the International Monetary Fund stuck by its forecast of a 3.5% growth in the Brazilian economy next year, which is to be a lot bigger than the growth forecasts of the world's largest economies.
A growing economy does indeed support growth in house prices, even if only at the rate of inflation as the cost of materials and labour rise. If Brazil house prices grow at the rate of inflation this year and next, they will grow by 4.1% this year and 4.8% next year according to the IMF forecasts for inflation.
However, the IMF is forecasting a contraction in the Brazilian economy this year so house price growth cannot be banked on.
That said: over the long term, Brazil is forecast to grow into the 5th largest economy in the world in the next 10 years, and house prices will grow significantly during this time.
Currently, Brazil property prices are among the lowest in the developed world, which means that Brazil poses a significant property investment opportunity. This becomes especially true when you consider that Brazil is to host the 2014 World Cup.
The international downturn has changed the face of overseas property investment; no longer are people investing based on incredible capital appreciation forecasts. They are investing based on solid cash-flow projections. People will be looking at the rental potential of properties in the cities around the stadiums, and investing in the ones likely to see solid rentals between now and 2014 when they stand to make a huge profit from renting to world cup goers.
View property for sale in Brazil
View overseas property for sale
Back to news articles for this country
Latest Related News Articles in Brazil
Brazil Property Demand Fuelled by Tourism Growth
2011-09-21
According to the latest data from the Brazilian Ministry of Tourism some 4.4 million tourists arrive.....
Brazilian Condominiums Offering Good Rental Yields
2011-08-26
Brazilian condominiums are offering investors solid rental yields, with properties on the coast doin.....
Dubai Firm Given the Green Light to Advertise Brazil Property in UAE
2011-08-23
A Dubai firm has been given the go-ahead by the Real Estate Regulatory Agency, the Dubai real estate.....
Rising Rates Unlikely to Affect Brazilian Property Sales
2011-05-24
Brazil's third largest homebuilder says sales are unlikely to be affected by increased borrowing cos.....
Prices in Iracema Brazil set to increase
2011-02-25
Today the three-mile long boardwalk in Fortaleza has been extended along to Iracema and is now fully.....
Sao Paulo House Prices Easing Down
2011-01-12
Regional Council of Realtors for the State of São Paulo (CRECI-SP) points to increasing signs of a p.....
Brazilian Tourist Destination Set for Expansion
2010-12-24
Fortaleza is set to be a hot tourism and overseas property destination in 2011,.....
Brazil Property Growing in Popularity as Tourism and Investment Grow
2010-12-10
The popularity of Brazil as a property buying and tourism destination continues to grow massively.....
Brazil Property Most Popular Says Agent
2010-11-30
Colordarcy has reported that Brazil is currently the most popular country with overseas property buy.....
Santander and Century 21 Create Brazilian Housing Finance Programme
2010-11-23
A recent partnership was announced between Spanish bank Santander and one of the fastest growing re.....