Why real estate in Latin America attracts property investors and which countries offer the best

Why real estate in Latin America attracts property investors and which countries offer the best

Real estate in Latin America has long been on investors’ radars and the region has risen to particular prominence this year. Live & Invest Overseas highlighted its potential for buy-to-let and Forbes emphasised the strong purchasing power for dollar buyers. 

The latest media outlet to underline the value of Latin American property in a portfolio is News Americas. A recent article on the portal explains the attractions in the regions and cherrypicks three countries as their top recommendations. Brazil heads the trio, followed by Chile and Colombia.

Reasons to invest in real estate in Latin America 

The article leads with the assertion that real estate in Latin America is currently “flourishing”. As a result, investors have the opportunity to tap into the myriad investment potential in the region, once the domain of funds but now with strong appeal to individual investors. 

The reasons behind the attraction include: 

Favourable exchange rates – this is particularly true for dollar investors. In March this year, Forbes crowned Brazil “the overall champ for currency discounts”. The broadsheet calculated that dollar buyers have 32% more purchasing power this year. 

Less stringent taxation – American and Northern European investors welcome this factor. Visa schemes in Brazil, for example, also offer tax benefits to property buyers.

More accessible market – the article points out that the region has opened up to international investment over the last few years and investors now have access to a wide range of markets. 

Value-for-money property – real estate prices in many parts of the world have escalated since the arrival of the pandemic. However, those in Latin America continue to offer value for money, particularly for buyers in foreign currencies. 

Guaranteed demand – many parts of Latin America enjoy a pleasant climate year-round (Ceará in Northeast Brazil is one such example). The region also boasts some of the world’s finest beaches. Between them, the weather and scenery guarantee demand. 

Brazil best for Latin American property 

News Americas News Network lists its top three picks for real estate in Latin America and places Brazil at the top of the trio. It highlights the size of Brazil’s economy, forecast to become the world’s fifth largest by 2035 and underlines the benefits of investing in property in Brazil. 

Brazil ticks all the boxes for holiday homes, retirement, and investment,” says the article. The country also offers a diverse landscape, excellent climate and rich culture. In addition, property is affordable, particularly for buyers in foreign currencies. For example, turnkey beachfront villas in a 5-star resort cost from US$203,000. 

Chile and Colombia also on the radar. 

As well as Brazil, the article also recommends looking at Chile and Colombia for property investment. In Chile, property prices have fallen since the pandemic, and the market is only just reactivating. There’s also no tax on capital gains. In Colombia, the demand for holiday lets is growing and like Brazil, real estate is affordable. 

(Source: News Americas News Network)