The market for holiday lets in Brazil might be young but it’s growing fast. The huge success of the recent FIFA World Cup has boosted the demand and supply of holiday lets to unprecedented levels. This surge of interest from both foreigners and Brazilians augers well for the holiday let sector over the next few years.
There have been signs that consumer spending in Brazil has slowed down, but the luxury car sector tells a completely different story. Booming sales so far this year confirm that the upper middle class in the country still has money to spend and plenty of it.
Brazil is currently carrying out one of the largest affordable housing programmes in the world. The next phase (3 million additional properties) will further boost the property market in the country as well as creating employment and advancing economic growth.
Fortaleza, the capital of Ceará in Northeast Brazil, continues to hold a privileged position in the Brazilian property market. Not only is the city one of the few where prices are rising above inflation, Fortaleza also stands out in sales figures.
The forthcoming FIFA World Cup is an exceptional opportunity for tourism in Brazil. During one month, Brazil will be placed in an international spotlight with all eyes focused on what the country has to offer. Hundreds of thousands of visitors and high expenditure are expected, and officials are fully confident that the World Cup will boost tourism in Brazil to unprecedented levels.
The recent 86th edition of Latin America’s largest construction event brought further optimism to the sector in Brazil, one of the largest in the country and an important engine behind the nation’s economic growth.
Caixa Economica Federal, one of Brazil’s largest banks and the biggest mortgage lender in the country, has just held its annual Own Home Fair in seven of Brazil’s regional capitals. With over 150,000 units on show at the exhibition, this tenth edition of the Fair saw record levels of business in Fortaleza, Northeast Brazil.
The latest annual review of Brazilian property has just been published and its findings confirm that the market for new builds continues to strengthen. Furthermore, the report highlights Northeast Brazil as one of the fastest growing areas in the country.
The Brazilian labour market continues to be buoyant with the unemployment rate reaching a record low of 4.3% at the end of 2013. This downward trend continued into January 2014 where unemployment was lower than economist estimates, as surveyed by Bloomberg.
The Brazilian housing market remains strong with steady house price increases. The final quarter of 2013 saw house prices rise by 3.5% from the previous quarter with all major Brazilian cities benefitting from increased property values. Brazil continues to hold its position as a hot property location for real estate investors.
Brazil’s real estate market is one worth watching. In 2012 and 2013, Brazil welcomed two record-breaking years in real estate lending, reaching an all-time high of R$109.2 billion in 2013, according to the Brazilian Association of Mortgage and Building Lenders. With this positive trend set to continue throughout 2014, a property venture in Brazil could provide a healthy return on your investment.
