Brazil property investors should take a
look at the hard economic facts not the social unrest when considering
Brazilian real estate .
Itââ¬â¢s a fact that the latest social unrest in Brazil has no doubt contributed to
increased worries for overseas investors considering Brazilian real estate. The
recent events have contributed to the decline of the real.
It seems that the social unrest is not long
term and between the government and the will of the people the causes will be
addressed.
Leader Dilma Rousseff has proposed a
national pact to calm complaints by improving public services, such as
healthcare, education and transport. This is supported by 68 per cent of
Brazilians.
The good news comes from Flavio Dino,
president of Brazil’s Tourism Institute said: “Last year’s results
highlight the fact that Dilma Rousseff’s government is working in the right
direction in preparation for major international events and therefore gives a
good image of our country abroad, thanks to our advertising campaigns, our
public relations and other events. The upcoming major world sporting events
such as the 2014 FIFA World Cup Brazil and the Rio 2016 Olympic and Paralympic
games provides a fantastic opportunity to showcase Brazilââ¬â¢s diversity.”
The hard facts are clear the Brazilian economy
has grown by a third in ten years and continues to grow. It may come as a
surprise to many to learn that mortgages only became available 5 years ago meaning a real
estate sector with little debt.
Mortgage availability was boosted in 2009
by a 15-year Government mortgage programme, funded through the state banks from
oil reserves, which now offers mortgages for the first time to the 85m people
in the middle class. This ââ¬ÅMinha Casa, Minha Vidaââ¬Â programme (called My House,
My Life) is being implemented in major cities across Brazil, to provide much
improved accommodation in areas where there is accessible employment.
Brazil has a housing deficit, estimated at
between 6-8 million homes and it will take some time for Brazilââ¬â¢s affordable
social housing scheme to have any effect on reducing this figure.
In all its clear that Brazils short term
problems should not affect long term propects of a country determined to be one
of the worlds economic forces.
