2018 looks set to be Brazil’s year. Not only is the economy in full recovery mode, but the country’s real estate market presents some of the best opportunities in the world. So good in fact that Brazil property investment takes top slots in two major surveys predicting opportunities for generating income as well as long-term capital appreciation.
Live and Invest Overseas, one of the world’s top resources for investing in property, and the Association of Foreign Investors in Real Estate both place Brazil at the top of their tables. Live and Invest Overseas pinpoints Fortaleza within Brazil as a key niche area for holiday let investment.
Focus on Fortaleza
Live and Invest Overseas places Brazil in second place (behind Panama) in their ranking for this year’s best spots for property investment. The company points out that Brazil is an enormous country with myriad different property markets, “some more interesting than others”. This variety means the investor needs to focus on certain areas.
Their chosen area for Brazil property investment in 2018 is the Fortaleza area. Live and Invest Overseas recommends the coastal section of Ceará state in Northeast Brazil for several reasons. The first is the area’s popularity among Brazilian tourists. The high numbers of Brazilian visitors to Ceará creates a ready market for holiday lets. “Rentals targeting the local holiday market can earn better than 8% net yield reliably,” says the report.
It moves on to recommend a particular sort of property on the coastline in Ceará: beachfront plots. And the reason for a front-line beach recommendation is because “lot prices are a global bargain”. An example of this can be found at Guajirú, to the north of Fortaleza. Plot prices at The Coral 5-star beach resort, currently under development by BRIC Group, start at US$37,510.
The report also rates Fortaleza property investment as one of the best places in the world because of the stability of Brazilian currency against the US dollar and its weakness compared to ten years ago. “Good yields and a weak currency make this country a strong buy for 2018,” concludes the report.
Brazil property investment top for AFIRE
Brazil also features very high on this year’s rankings for the Association of Foreign Investors in Real Estate (AFIRE). AFIRE members who have an estimated US$2 trillion in assets under management, ranked Brazil second in the world for capital appreciation in their 2018 survey. Brazil came behind just the US and ahead of China, Spain and the UK.
In the same survey, Brazil topped the world ranking for best emerging markets, rising from third place in the 2017 survey to first in 2018. It beat China, India, Mexico and Colombia.
(Source: Boston Real Estate Times, AFIRE)