Should You Invest In Brazil?
Returns on investment are considered superb and investors are becoming increasingly aware of the high growth potential that Brazil offers as a stable though fresh, new investment market.
- Active encouragement and incentives for foreign investment - you can own 100% of land and property.
- Cost of living is only 20% of that in the UK/Europe and property maintenance costs are also extremely low.
- Some of the lowest property prices in the world.
- Increasingly, thriving manufacturing industries are relocating to Brazil and boosting the economy.
- Year-round sunshine, with average summer temperatures of 21°C.
- Great natural beauty with fantastic scenery and 7,000km of beaches.
- Easy access via direct flights from many international airports.
- Pro-landlord rental markets- with high rental yields in major city centres.
- Large tourist industry also increases the demand for short-term rental.
Rental Yields
A 50 sq.m. apartment in Sao Paolo can be expected to yield 9.6% per annum. Larger sized units generally have lower yields, from 5.4% to 7.2%. Yields for apartments in the suburbs of Sao Paolo are between 4% and 8%.
Properties in Rio de Jainero are slightly more expensive than in Sao Paolo, but they also fetch higher rents and return higher yields; from 7.5% to 9.6%. Yields for apartments in other cities such as Fortaleza, Bahia and Brasilia are around 4% to 7%. Smaller units generally have higher yields.
Price History
Prices in Brazil have been relatively unstable over the past few years, and Brazil experienced a decrease in property prices after the devaluation of its currency in 1999. In the four years leading up to 2005, property which had previously been sold for R$150,000 (£38,000/$65,000) went down to less than R$100,000 (£25,000/$42,000). Prices are therefore still relatively cheap but with the economy now stable there is a strong basis for property prices to climb again. Prices for a detached villa start at around £15,000, although a significant premium will be added to property close to Rio. Prices are also higher in the popular regions of North-East Brazil.
Brazil
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| Location: Sao Paulo |
The Vision apartments are perfectly placed to take advantage of Sao Paulo's high yielding real estate market and Brazil's booming economy.  |
| Property Type: Apartments |
Prices: from £81,000 |
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