Jim O'neill, Goldman Sachs chief economist has said that the Brazilian economy has come through the global economic crisis extremely well and is set for 5% growth in the next few years.
His statements have been picked up by the media but no one has mentioned that 5% growth is a very cautious forecast for the Brazilian economy's growth in the next few years.
Brazil is a production powerhouse, with the potential to become one of the world's biggest exporters. Despite its having among the largest stocks of cattle in the world, Brazil is also embracing the world's great growth sectors like renewable energy, thus future proofing the economy to as great an extent as that is possible.
Brazil's economy grew at 5.4% in 2007 and 5.2% in 2008, so to say it will resume growth at a similar rate in the next few years is a very cautious forecast indeed. Especially considering other countries in the region like Panama, which grew at around 10% in the past few years.
The global financial crisis did great damage to Brazil, but after such a scything growth should restart at an accelerated level, because the environment is conducive to greater growth.
This is true in the property market as well. Because Brazil property prices haven't grown in the way that they were forecast to, and probably won't this year, this means that international investors can still pick up some great bargains in the country -- although they will be disappointed that prices haven't fallen.
View property for sale in Brazil
View overseas property for sale
Monday, 31 August 2009
Thursday, 27 August 2009
Spain Property Set for Less Misery in 2010 as Brits Bag Bargains
Spanish construction is to fall by 25% by the end of this year experts have stated. The global financial crisis caused demand for Spanish property to all-but dry up, meaning a massive over-supply emerged causing prices to fall rapidly.
Developers were forced to continue working on developments that had been started, despite the over-supply. None the less thousands of jobs were lost, as developers cancelled projects in the pipeline, and found it nigh impossible to sell properties already constructed, and impossible to sell off plan.
However, now that development is finally calming down, and prices have fallen almost 30% from their peak, demand is slowly growing, especially when Sterling begins to claw back some ground against the Euro.
The shortening of supply combined should combine with the increasing demand to put a floor below prices next year.
The tide is changing in the field of overseas property; the Brits are once again getting out there and sticking a toe into the water.
You know things are improving when the Times runs a positive story on buying overseas property. The fact that Spain was mentioned several times in the article is evidence that things are also improving for Spain. This makes sense; Spain has always been one of the most popular countries for British holidays, and property buyers, so it is logical that when Brits start buying that Spain will be among the first to benefit.
Sunday, 23 August 2009
Spanish Property Still Topping the Charts with Overseas Buyers
Spain has topped the charts yet again in terms of popularity with overseas property buyers according to a recent chart compiled by major overseas property publication Home Overseas.
Spain took 1st place from its close rival Portugal, which had apparently been most popular in the Home Overseas chart for several months.
The Homes Overseas chart is very different to that of portal Property Abroad.com who had Spain in first place for several months until it was overtaken by America in June, which stayed in top-spot in July as well. America is 7th most popular with Homes Overseas readers, up one place on the previous month. Thailand property is 9th most popular with Homes Overseas and has never appeared on the Property Abroad.com chart.
Activity does seem to be increasing in the Spanish market slowly but surely, as the combination of the price drops and strengthening Sterling vs Euro exchange rate brings people back in to the market in the hope of getting their dream holiday home for a bargain price.
You know things are improving when you read an article titled Is it time to dive back into the overseas property market in the Times, or rather when the answer within the article is a resounding yes.
The article even contained details of a 100% profit made on a Spanish property investment, it read:
"Someone who has followed that advice [to buy resort property in prime coastal locations where the Spanish also buy] is Alexander MacDonald, of Glasgow. The 41-year-old bought a one-bedroom apartment in a Spanish-dominated block in Playa de la Arena, Tenerife, for £40,000 in 2002. He sold recently for £80,000 and is looking to buy something bigger in the area while prices are down."
Saturday, 22 August 2009
Conflicting Reports on the Future of Dubai Property Market
The United Arab Emirates -- and one of the world's -- most talked about property markets, Dubai is also one of the world's hardest to make forecasts about.
Almost every week a new research report is issued with conflicting data about what property prices are likely to do in the near and distant future.
This week a study by JP Morgan found that there would be almost 30,000 unsold units in the emirate by the end of this year. While another study by Jones Lang La Salle said that the market was stabilising, with the quarterly decline now slowed to 6%. Jones Lang La Salle are also forecasting growth in the market in 2011.
Earlier this month, one of the Dubai property market's staunchest advocates wrote a surprising article on how the Dubai market, where prices are now almost 50% lower than they were a year ago may have seen enough falls to call bottom.
He tempered this however, by saying that unless Dubai property could reinvent itself to be more attractive to lifestyle buyers, it may never be the investment hot-spot it once was.
My friend Frank Crowley, director of overseas property specialist Azure Overseas agrees with Jones Lang La Salle, he believes that growth will return to the market in 2011. He said:
"Dubai's biggest problem will be the complete loss of confidence in the market, with the volume of unsold units and unfinished developments a close second.
"The over-supply should slowly be rectified over the next year and a half with people buying as bargains become available to hold until growth returns whenever that may be. And then the negativity should all be forgotten about by 2011, at which point the sheer build quality and prestige of the developments will once again attract global buyers, who will also find the low prices a major attraction."
Thursday, 13 August 2009
Canada Signs Free Trade Deal With Panama
Canada has signed a free trade deal with Panama, which will immediately slash tariffs on exports between the two countries by up to 90%.
The deal will be mutually beneficial, because, though Canada exports far more than it imports from Panama and vice-versa, both will be able to import goods cheaper, because prices will not have to factor in the tariffs.
Panama's imports from Canada, and many other places around the world are vital to its economic emergence.
Panama's economy grew by over 9% last year, and is expected to grow by over 3% this year according to the International Monetary Fund. Therefore this is a savvy move by Canada, as Panama's imports are likely to drop by a lesser margin than that of recession-hit countries.
The US proposed a similar deal with Panama last year, but it has been stalled and now looks likely to be shelved in favour of new policies by the Obama administration.
In 2008 Canada's top goods exports to Panama were:
- Vehicles, including diesel
- Electrical and electronic equipment
- Aerospace (primarily flight simulators)
- Pharmaceuticals
- Pulses (primarily lentils)
- Frozen potato products
- Mineral fuels and oils
- Fruits and nuts
- Fish and seafood products
- Spices
- Coffee
- Mineral ores (primarily silver ores and concentrates)
Panama's incredible economic present and future continue to make it increasingly popular with overseas property buyers and investors. View Panama property for sale
Thursday, 6 August 2009
Portugal Property 4th Most Popular in July
Portugal is currently the 5th most popular country among those searching to buy property abroad. Well, that is according to major UK portal Property Abroad.com which publish a chart of the most popular countries for every month.
The only 4 countries more popular than Portugal were America (1st), Spain (2nd), France (3rd) and Greece 4th. The common denominator being that they are all established markets, and with the exception of America of course they are all in the Eurozone.
Last month, Sterling had reached a very strong point against the Lira, so Turkey property climbing to 5th most popular was understandable, but it was still a shock that Portugal property slipped back 3 places instead of one.
Portugal property is by no means the cheapest overseas property, but there is still room for growth, according to Frank Crowley, director of Azure Overseas.
"Portugal is still growing in popularity as a holiday destination, and as a destination to buy overseas property, especially given the current dissolution with Spanish property, which has benefited Portugal no end," he said.
Azure Overseas is currently marketing property for sale in Portugal on the Silver Coast priced from under £110,000.
Wednesday, 5 August 2009
Florida Repossession Properties Highlighted for Investment by Experts
Repossessed property in Florida has been identified as one of the best investments. Overseas property expert Liam Bailey has written two articles highlighting the potential gains to be made from the opportunity, one on Overseas Property Mall and one on his own blog Overseas Property World.
Liam believes that it is almost fool proof, he writes:
3, 4 and 5 bedroom (mansions) villas with private pools; the properties that you or I could only dream of are now within reach of the masses. Buying a property with 50% instant equity leaves buyers with only one question: will they ever regain their market value. In Florida’s case the answer is a resounding yes.
When we can talk about the international downturn and housing crises in past tense once and for all, Florida will regain its popularity with international buyers, and as things recover Florida residents will once again be buying houses in the normal way.
Time is of the essence for any Investors wanting to cash-in on this opportunity, because while repossessions are still happening almost daily in the sunshine state the best properties sell very quickly, almost as soon as they come onto the market.
It is also worth advising people to look upon this as an opportunity, not to buy cheap property, but to get more property for your money, a: because the more expensive properties are discounted more heavily, and b: because they are likely to regain their market value more quickly.
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