Brazil’s property market is set to become one of the hottest markets in 2010. The country is one of the world’s fastest growing economies, its foreign direct investment has increased and Brazil will host the 2014 soccer Worldcup and the 2016 Olympic Games, which will bring a boost in infrastructure.
Brazil property specialist, Colordarcy, has see Brazilian property enquiries raise by 60% since the Olympic announcement. The company has responded by launching a consultancy service to help clients to source the best real estate deals in Rio de Janeiro. Loxley McKenzie, CEO of Colordarcy predicts an annual increase of 20% pzer annum until the Olympics of 2016.
Mortgages will soon be available to international buyers and this will create a further boost to Brazil’s property market.
The US real estate Tycoon Sam Zell focused a great deal of his 2008 and 2009 on Brazil after his disastrous buyout of Tribune Co; amongst other Zell bought a 19% stake in the Brazilian Gafisa SA.
Indeed, the mortgage to GDP ration in Brazil stands at 3% today (zee below graph to compare with other countries).. Zell thinks this needs to be in double digits, adding that this could happen within 3 to 5 years. In Mexico that figure now stans around 12%; Zell thinks within 3 years the Brazilian mortgage/GDP ratio will grow to the same level as Mexico.
