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The fact that Brazil’s economy has recovered quickly from the global recession has been well publicised and future signs are continuing to look promising from a variety of perspectives.

The property market is no exception and there are now several areas of the country that have become recognised as overseas buyer ‘hubs’ as investors look to take advantage of the favourable conditions.  Examples include Natal, Recife and Fortaleza (in the north east) which present strong capital growth prospects supported by significant public and private infrastructural investments.  In the south – where the majority of Brazil’s wealth is concentrated – the metropolitan regions of Rio de Janeiro, São Paulo, Porto Alegre and Curitiba have also long been the destination of choice for foreign investors, particularly Europeans.

At the same time, savvy investors are also beginning to explore other ‘untapped’ parts of the country that are presenting interesting economic fundamentals.  Below are three examples:

Maranhão – promoted as the ‘state of opportunities’, it is currently the country’s second highest growing region due to a variety of factors including the development of what will be one of the largest oil refineries in Brazil (close to the capital, São Luís).  The local government recently announced a housing deficit of 570,600 units – the highest in the country – which has led to several national home builders expanding throughout the state (such as Rossi, Cyrela and Gafisa).

Espírito Santo – another petroleum pole located in the south east, the state offers strong economical prospects as well as a relatively high standard of living.  The Espírito Santo Industrial Development Institute estimates that, by 2020, R$ 130 billion will have been invested in the private sector in addition to several public funding initiatives such as via Brazil’s Growth Acceleration Programme.  Post Brazil’s brief recessionary period (in 2008/09), the housing sector has witnessed a renewed sense of optimism as a result of growing demand boosted and the availability of mortgage finance – particularly in the capital Vitória and its neighbouring cities: Cariacica, Serra and Vila Velha.

Goiás – this central-west state is undergoing rapid transformation as a result of its growing agri-business sector (chiefly beef and soy production) complemented by fiscal incentives and improving infrastructure.  Its housing deficit was estimated at over 200,000 units in 2009 with an expected annual construction rate at between 20,000 and 25,000.  This year, the state was deemed as an exemplary model for the administration of the ‘Minha Casa, Minha Vida’ (‘My House, My Life’) programme for comfortably hitting its targets – prompted by a healthy demand for good quality and low cost housing (phase two will be launched in the state shortly).