Over the last five years, Brazil has been one of the best
performing property markets in the world.
MoneyWeek recently reported
that prices in Rio de Janeiro and São Paulo have gone up 140% since 2008, while
those in Brazilââ¬â¢s seven most important districts are up around 25% in the last
year alone. And now, another
leading analyst believes the boom is set to continue for another five years.
Forbes report that
the Brazilian real estate market ââ¬Ëhas legsââ¬â¢ and that prices are expected to
continue rising in the country until 2017. Keep reading to learn more about the excellent prospects for
property in Brazil.
Property prices and
rents rising in Brazil
Forbes believes
that the property market in Brazil will continue to see rising prices for
another five years, making it an excellent time to buy. They also point to falling interest
rates as inflation begins to ease and the fact that Brazilââ¬â¢s middle class is
now the majority of the population for the first time ever.
In addition, rental yields in Brazil are rising. This makes property an attractive
investment for overseas buyers.
But why 2017?
Why are prices expected to keep rising for five years before
slowing? Keep reading to find out.
Major sporting events
boosting property in Brazil
Brazil is hosting two major events over the next four
years. The FIFA World Cup comes to
the country in 2014 before the Olympic Games are hosted by Rio de Janeiro in
2016.
Marcus Vinicius de Oliveira, executive director of real estate
valuation firm Consul Patrimonial, said: ââ¬ÅThereââ¬â¢s a psychological margin that
Brazil real estate enjoys at the moment due to the oil discoveries off the
coast of Rio, the World Cup and the Olympics, which makes Brazil very
attractive to foreign investors at the moment.
ââ¬ÅBut after 2017 Brazil will still have its oil discoveries,
but the World Cup and Olympics will be done with and foreign investment into
Brazil will slow as a result.ââ¬Â