Investing in Land in Brazil

Investment Outlook

Previously, investment in Brazil was mainly based in banking and stocks. The gradual drop in interest rates and the economic stability over recent years has created a shift into the real estate market. While still in its early stages, the prices of real estate and land in Brazil is expected to increase significantly in the coming years with further generated international interest and the development of mortgages opportunities for Brazilian nationals.

Over recent years, Brazil has begun to emerge as an economic giant. It is the world’s fifth largest country in terms of land mass and has the largest economy in South America. Brazil’s economy is steadily growing, currently ranked as the ninth largest world-wide.

The BRIC report of 2001 by Goldman Sachs Investment Bank has continued to arouse a growing interest in the economic development and investment potential of the four BRIC countries: Brazil, Russia, India and China. The report identified the massive potential economic and financial growth of these four countries in the coming years. With improving economical strategies, large workforces and a wealth of natural resources, the BRIC countries have the potential to outstrip the world’s current economic leaders by 2050.

The "Goldman Sachs" report continued to predict that: "The importance of the BRIC economies in global capital markets is also going to rise dramatically"

Further articles in the Financial Times reviewed the BRIC progress since the release of the report. "Five years on, Mr O’Neill (Goldman Sachs) says that not only has the BRIC phenomenon exceeded his expectations, but that the dream is likely to continue in the years ahead."

Further to the Goldman Sachs BRIC report, there are many indications, economic predictions and studies indicating an optimistically bright future for Brazil’s economy.

Brazil is an oil rich country, enabling it the strong position of self sufficiency, drastically reducing the dependence upon expensive, imported fuels. Brazil also produces ethanol, a bio-fuel produced from sugar cane that fuels 80% of new cars in the country. Brazil is currently in discussions with the US to create a deal for bio-fuel exports.

As the northeast of Brazil continues to develop as a preferred touristic destination, the future of land investments in areas such as Fortaleza will continue to increase in price as the demand for coastal areas is expected, in years to come, to begin to outstrip the supply.

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