The immaturity of Brazil’s property market in combination with the relatively advanced economic performance of the country has brought about a huge opportunity for property investors.
(PRWEB UK) 11 June 2013
According to the report by Savills, the price of property in São Paulo and Rio de Janeiro has risen by 127%, and 189% respectively since the beginning of 2008 (Source: Savills June 2013).
According to Colordarcy analysts, the Brazil property market offers an enticing combination of rapid rental growth in addition to the spectacular price growth seen since 2008.
Savill’s report highlights that rental growth has also risen by 86% in São Paulo and 129% in Rio. This is mainly due to the low supply of rental properties with high owner occupier rates still prevalent in Brazil.
Commenting on this month’s report, Loxley McKenzie, Managing Director of Colordarcy said, “The immaturity of Brazil’s property market in combination with the relatively advanced economic performance of the country has brought about a huge opportunity for property investors.
Whether investors are from North America, Asia or Europe, the opportunity exists for significant capital growth in Brazil.
Far from cooling down, Brazil’s property market will offer a strong return on investment in the medium term, particularly in the run up to two major sporting events happening in 2014 and 2016.”
Far from suffering the oversupply issues seen in property markets in North America and Europe in recent years, Brazil has the opposite problem according to Colordarcy analysts.
The government has put in place a social housing scheme to raise the living standards of its population. The government calls this scheme Minha Casa Minha Vida or My House My Life translated to English.
Minha Casa Minha Vida will involve the construction of 27 million homes for low income families over the course of 20 years. (Source: Savills June 2013)
This scheme is still in its early stages having begun in 2009. Demand for these homes is huge and represents a significant opportunity for those who can purchase what is effectively a government-backed housing.
Despite the huge investment that has gone into Minha Casa Minha Vida, Brazil still has a housing deficit of 6-8 million homes. (Source: Savills June 2013)
Colordarcy is currently offering investors the opportunity to invest in Brazil Minha Casa Minha Vida Social Housing from just £23,000 with a 20% return on investment in 12 months.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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