Flag Rio Aerial View Coastal View Cityscape Night View


Please see a chapter from “The Essential Guide to Land Investment in Brazil for 2015 and Beyond” – kindly donated to this blog by Brazilian real estate consultant and author Mike Smith. Scroll down to the bottom of the page for Mike´s full contact details and social media links.

With Brazil’s recession, political disarray and justifiably anxious and muddled market outlook by foreign investors, I thought it was a perfect time to take a closer look at Brazil’s real estate investment climate – as seen by both Brazilian and foreign real estate players.

There is a saying that every dark cloud has a silver lining. The current situation in Brazil is just like one of those dark clouds. It won’t be too long before they move away and the bright sunlight shines through. For foreigners, the Brazilian real estate market presents a great opportunity, but it may not last long.

According to a recent business survey, Natal has been ranked as the 5th best city to invest in real estate in Brazil whilst the first four places were taken by selected municipalities of São Paulo. This is an extraordinary finding for Natal, considering that nearly all Brazilian municipalities were studied, out of which the 100 best were shortlisted and ranked.

Whilst the bottom of Brazil´s real estate market is arguably some distance away, more investors have begun to examine when this turning point will actually arrive to potentially benefit from future capital gains. Yet even during such boom times, particularly for the foreigner, the risks of buying into this asset class often outweigh the positives – a phenomenon largely caused by lack of clear knowledge of mitigating the myriad of pitfalls. In an attempt to kick-start more rational analyses of doing property business in Brazil, below are some highly informative comments recently made by tax adviser David Soares da Silva. Having operated as legal counsel, tax advisor and member of board of directors of foreign funds and companies with investments in Brazil since 1993, David is well versed in a range of tax planning and international business transactions and can be contacted directly on dsilva@blslaw.com.br.

Brazil has always been, and remains, a beautiful and exotic location with a high demand for beach front property and vacation homes. The vacation rental market in Brazil has a good reputation with with AirBnB and similar services offering high end vacation homes for rent.

Despite the economic and governmental issues currently weighing heavily on Brazil, real estate investment still presents a very real opportunity for those willing to consider the bigger picture and the long term.

The collective pooling of financial resources, more commonly known as crowdfunding, has grown at a notable pace in recent years.  Various organisations, particularly in the UK and US, have sought to leverage the benefits of “power in numbers” when seeking investment for a range of project objectives. Specifically within more...

A agregação coletiva de recursos financeiros, mais comumente conhecida como “crowdfunding”, vem crescendo em um ritmo notável nos últimos anos. Várias organizações, principalmente no Reino Unido e EUA, têm alavancado os benefícios do “poder dos números” na busca de investimentos para diversos objetivos empresariais e filantrópicos. Nos mercados imobiliários mais avançados, especificamente, esta formatação de financiamento tornou-se especialmente atraente, dadas as regras cada vez mais estritas da pós-crise mundial. Além disso, abrem-se possibilidades mais interessantes para investidores imobiliários de menor porte para que possam desenvolver carteiras discutivelmente mais equilibradas. Embora ainda muito incipiente no Brasil, fiquei satisfeito com a oportunidade de entrevistar o advogado e contador Vinicius Maximiliano Carneiro – uma das principais autoridades do crescimento deste veículo de investimento – sobre o potencial de crowdfunding como uma alternativa viável aos mecanismos mais tradicionais de financiamento imobiliário.

Whilst bullish investors have successfully cashed in and out of the Brazilian property boom, does the country remain too risky? Not so long ago Brazil´s massive housing shortage, incipient mortgage market, low unemployment and encouraging social indicators stood in sharp contrast to the effects of the global economic crisis, spurring unprecedented levels of overseas...

  • LinkedIn
  • Email
  • Twitter


Ruban Selvanayagam