Foreign property investment is surging in Brazil as prospectors rush to take advantage of affordable prices ahead of infrastructure investment slated to take place in anticipation of the 2014 FIFA World Cup and 2016 Olympics set to be held in Brazil. Planning permissions are being doled out and the country’s government has set aside billions for new roads and a new high-speed train system. The combined effect is a perfect storm for real estate investors not already targeting Brazil, which has been experiencing increased growth for some time already. For more on this continue reading the following article from Property Wire.
Overseas investment in property in Brazil has hit an all time high and, as the fifth largest country in the world, prime land plots are increasingly regarded as a good investment for any portfolio, it is claimed.
In the build up to the 2014 FIFA World Cup and the 2016 Olympic Games, the Brazilian government is predicting that the economy will grow at an annualised rate of 4% or above for 2013.
There has also been an increased amount of Foreign Direct Investment (FDI) pouring into the country over the past 12 months. A recent report by Ernst & Young Terco estimates that FDI into Brazilian real estate can be counted at between R$5 billion and R$10 billion in 2012 so far, perhaps fuelled by the much publicised Accelerated Growth Program (Programa de Acelerao de Crescimento, PAC) which was implemented to improve the country’s infrastructure in preparation for both sporting events.
With an estimated R$800 billion allocated to the programme, which includes repairing and upgrading the roads and the construction of a high speed train linking Sao Paulo and Rio de Janeiro, savvy investors are seeking out prime plots of land and real estate now, while prices are still affordable and the possibility of capital appreciation is high.
Property firm Knight Knox International, which has been selling property in Brazil for many years, has recognised the increased investment potential in the country and has just launched three new land plot sites, which it believes offer terrific value to investors.
‘Land plots in Brazil are the perfect example of an investment opportunity that has a great potential for capital appreciation,’ said Mike Sefton, property consultant at Knight Knox International.
‘Great locations, amazing price points and more importantly planning permission, are all important factors when purchasing land, which is why we have only sourced projects that we are confident will deliver strong returns for our clients,’ he added.
The plots include Rio Hills in Rio de Janeiro which are available 100% freehold with pre-launch prices starting at 21,076. Construction licenses are in place on all lots and an experienced management company is in place should investors choose to build on the land. The firm describes is as an up and coming area with lake and mountain views just 45 minutes away from downtown Rio.
The Plantation plots are located in The Discovery Coast, Bahia, and come with planning permission for high standard villas. It is described as a tropical paradise and a favourite holiday/retirement destination for wealthy domestic Brazilians with prices starting at 30,000 for a 366 square meter plot.
There are also plots at Capongo Beach, some 35 minutes south of the city of Fortaleza. There is planning permission for 600 villa plots on approximately 80 acres of land with prices starting at ã12,000 for a 250 square meter piece of land. Roads, curbs and street lights are already in place.
This article was republished with permission from Property Wire.