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31/05/07 - Property
Booming on Brazil's "Caribbean Coast" |
Brazil's property
market is fizzing with excitement this week with news of unprecedented
activity in its construction and housing sectors…
Property in Natal, the country’s ‘Caribbean Coast’ and the capital city of
the State of Rio Grande do Norte, is witnessing huge growth in its
infrastructure and set to receive 1.8 billion US dollars of investment into
new hotels, resorts and golf courses and major new airport, reports
Nubricks.com.
A recent survey by the Institute for Applied Economics Research showed that
Natal is the safest of all Brazil’s regional capitals when it comes to
personal risk, part of the area’s huge appeal as a retirement destination or
for a second home investment.
With an economy which appears to have entered a new phase of stability
following years of underperformance, the country’s central bank recently cut
its inflation rate prediction to 3.7 per cent.
Coupled with a strengthening currency, a popular re-elected President in the
shape of Luiz Inácio ‘Lula’ da Silva, not to mention some of the best
beaches in the world, the massive success story of Brazil as an emerging
real estate market is one to be taken very seriously indeed.
Employment rates ‘soaring’
Brazilian employment rates last month registered the strongest growth in 15
years, with a total of 301,991 jobs created in April, up 31.4 percent from
229,803 for the same period last year. This signals the largest employment
growth the General Register of the Employed and Unemployed (CAGED) has
verified since it was created in 1992.
Brazil’s popularity is undisputed, with floods of tourists enjoying the
country’s unique combination of great climate and environment and extremely
low cost of living, with many areas retaining that golden ‘untouched’
feeling.
Increasingly seen as a viable alternative to the European property markets,
the resulting high rates of occupancy mean that the Brazil property market
has something to offer any property investor.
It’s no surprise then to read that it’s the financial analysts who can’t get
enough of Brazil and its continuing success: economists at the mighty
Goldman Sachs even invented an acronym in 2001, BRICs (standing for Brazil,
Russia, India and China) in order to name and track the phenomenal growth
seen and predicted to continue of this bullish group of four.
BRIC economies ‘leading the way’
They have predicted that, by 2050, the BRICs economies will grow so large
that they will each become members of the largest economies in the world. It
goes without saying that, if the four pursue good economic policies,
incredible returns are to be had.
In the past, social problems such as poverty, human trafficking and
governmental corruption dissuaded buyers. However, the world can see the
changes happening in Brazil as it actively courts international attention.
Foreign exchange specialists Currencies Direct’s Global Emerging Markets
Index showed Brazil climbing to 9th place in the top ten places to invest,
noting the country’s large and well-developed agricultural, mining,
manufacturing and service industries, a large labour pool, and relative
Latin American wealth.
Nonetheless, Brazil is still a developing country and therefore there are
positives and negatives to be aware of in the country’s property game.
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