Restrictions to Brazilian land ownership 'will not affect property investors'

A leading investment organisation in Brazil has reassured property investors that new rules pertaining to the purchase of land will not have a negative effect on their existing portfolios.

Speaking to Overseas Property Professional (OPP), Felipe Cavalcante, the president of the association for inward investment in real estate in Brazil, ADIT, said that the changes would only be applied to agricultural land.

"Any changes in the future would have no impact at all on people who have already invested in real estate," he confirmed.

Furthermore, Raymond Smith, a partner at Magno Smith, told OPP that the Brazilian constitution would also work in an investor's favour and prevent the authorities from reclaiming land.

The government in the country is looking to introduce a number of strict regulations which will prevent overseas buyers from purchasing agricultural land.

According to ministry spokesperson Denise Mantovani, ten million acres of land in Brazil was registered to foreigners by 2008.

The news is sure to please those who have invested in property in Mato Grosso, although agriculture plays a large part in the region's economy.

Like this? Then share with your friends and colleagues!