Brazil’s international property market is currently led by
the
Portuguese (27%) followed by the British (15%) and
Spa-
nish and Italians (12% each). According to Knight
Frank,
“as the Brazilian second homes’ market becomes
more
sophisticated and is more widely promoted, it is
likely that
the demand from international purchasers will
increase.”
A fundamental factor behind the growing Brazilian
property
market is the ever-increasing wealth among
Brazilians.
Brazil’s middle class represented 52% of
the population in
2008 and the country’s millionaire
population recently almost
doubled, one of the highest
increases in the world.
The growing number of households with sufficient
wealth to
enter the property market (both first and
second home markets)
adds to the resale market
potential. With Brazilian interest rates
down to an
all-time low and lending rules relaxed, the country’s
emerging middle class will lead increased demand. |
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In
Brazil demand is currently extremely high – Reuters Real
Estate
analysts put the shortfall figure at over a
staggering 27 million properties over the next 15 years.
With properties situated in developments in beach
resorts in the
Ilheus and Itacare area seeing rental yields of around10% a year,
the rental market presents good potential
in many areas of Brazil
including the major cities and
resort areas such as those on the
South Bahia coastline.
Rising
tourism (mainly domestic but increasingly international)
has led to demand for quality short-term rental
accommodation,
with Brazil’s newly-affluent
population keen on luxury holiday
accommodation in
beach resorts, particularly in the north east
region.
According to Reuters Real Estate analysts, 27 million properties
are needed in Brazil over the next 15 years to meet the demand
for housing. |
