After many years of political and economical difficulties, Brazil is coming out of recession in a big way. Although prices for residential property in 20 Brazilian cities fell by 3.23% last year, when taking account of inflation, some areas such as Fortaleza are seen as real investment opportunities now.
One reason for the downturn of the Brazilian property market in recent years was an oversupply of housing stock. Lower prices and better prospects for the economy, however, are causing rising demand. This year, Brazil's economy is expected to grow by 1.9%, according to the International Monetary Fund.
Two major surveys, one published by the Association of Foreign Investors in Real Estate, the other by Live and Invest Overseas, place Brazil in top slots in their listings. Both surveys forecast opportunities for real estate investors in terms of long-term capital appreciation and property that will generate an income. Live and Invest Overseas named Brazil in number two position, after Panama.
The Association of Foreign Investors in Real Estate named Brazil in second place for capital appreciation in their 2018 survey, and in first place for best emerging market, ahead of China, India, Mexico and Colombia.
Although sales in the medium range of the residential property market are still struggling in cities like São Paulo, the lower end of the market saw an upturn thanks to government subsidies, while the luxury market segment remained fairly stable throughout the recession.
One of the up and coming areas for investment, according to Live and Invest Overseas, is Forteleza, a place where investors should take a look at the holiday lets market. The organisation names Forteleza as a key nich area in which to invest, singling out the coastal strip of Ceará state in Northeast Brazil, which is particularly popular with Brazilian visitors. The organisation named the area as a good market for holiday let investment opportunities, where yields in excess of 8% can be reliably achieved.
At the beautiful coastline of Ceará state it is still possible to find affordable seafront plots, when compared to global prices in beach-front properties. The organisation names The Coral 5-star beach resort as one area to invest in. The resort is under development by BRIC Group. Prices start at just USD 37,510, according to Live and Invest Overseas. Brazil's weak currency and good rental yields make the country a great investment opportunity for international buyers.