Brazilian real estate is becoming a major area of interest for investors, according to a new study.
A survey of members of the Association of Foreign Investors in Real Estate (AFIRE) showed that while the US remains the most popular country overall, Brazil is closing in on the nation in several categories.
When asked about the top global cities for investment in 2012, AFIRE's members voted Sao Paulo into fourth place - compared with its number 26 ranking last year. Similarly, Brazil came second in the list of the top nations for capital appreciation, up from fourth in 2011.
The country also kept its first place ranking in the emerging markets category ahead of China, Turkey and Vietnam.
"Cross-border investors still regard North America and Europe as being the most stable and secure markets. But with foreign investors having a diminished confidence in the recovery, interest is broadening and emerging markets are attracting more notice," explained Barbara Knoflach, chairwoman of AFIRE.
The report comes after a recent Reuters poll of business associations, banks and research organisations suggested house prices in Brazil could rise by five to ten per cent in 2012.