Sustainable Growth in Brazil

If you are looking for a slightly more exotic place to invest in property than mainland Europe, Brazil may be worth a look.

Brazil has plenty of physical space and good resources needed to keep a sustainable growth in the real estate market therefore any good investments bought in the country are likely to yield good returns in both the short and the long-term.

Land prices in Brazil are starting to grow at a fast rate, partly thanks to the massive interest in biofuels. As land prices increase, so to do property prices and this is why many people are looking to Brazil for their next property investments.

One option you may want to consider is pre-builds. Essentially, when you invest in land at the pre-build stage, you will garner a share of the profits whether you choose to build properties on the land, or just sell the land on at a later date. In places like Natal, 25% increases per annum in real estate prices are not uncommon.

However, as with any property purchase, we advise caution as not all land is equal. There are plenty of cheap plots of land being touted as good investments but in reality, they are anything but – stuck in the middle of nowhere with no utilities or infrastructure, the land is virtually useless. Some of these plots are also classed as ‘rustic’ which means they are currently not suitable for building properties on. These purchases are incredibly high risk as you are banking on the fact that roads and infrastructure will be built near your plot of land in the future. However, these plots do tend to be incredibly cheap so if infrastructure is built nearby, you will make a very healthy return on investment.

If you are looking for a piece of real estate which isn’t quite so risky, keep an eye out for land for sale in areas which have been earmarked for tourism development. Normally classed as ‘urban land’, these areas will likely have nearby infrastructure already implemented or planned for the near future, therefore the risk on the real estate are reduced. You are also more likely to be able to build properties on your land, and either sell or rent them at a good price.

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