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 firstname.lastname@example.org.
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...
As the games draw to a close, much of the evidence has pointed to the fact that the World Cup has served little favour in stimulating the property market (according to the FipeZap property index, the price per m² fell in 5 of the 16 cities analysed in June). Away from the largely false image of Brazil´s construction market being made up of high rise middle and upper class developments, the debate over housing supply for the masses continues – whether it´s criticisms over the political motivations of the “Without Roofs Movement” or how public financing is actually being allocated in this are. Below, I have translated urbanist and University of São Paulo professor Raquel Rolnik´s recent insights, speaking to the Brasil Post.
As the debate of social housing supply looks likely to heat up amongst Brazil´s impending election campaigning, it´s worth while taking a look at some of the ground level experiences via three recent news bulletins from across the...
A recent article in the Construção Mercado magazine explored the interesting growth strategy of low and middle-income neighbourhood development, widely being discussed amongst the Brazilian construction industry under the complex challenge of sustainably attending housing demand at the scale necessary without compromising good quality living standards.