Brazil, known for being popular among tourists, has property investors highly interested in capitalizing on its low home prices and positive economic outlook for the next several years.
Property prices are falling and reports state that the prices may have already peaked in the largest city. In October of last year, home prices dropped 3.53 percent compared to September. Additionally, there was a 25.6 percent decrease in the number of homes sold.
Falling home prices are not keeping local and overseas investors away though. They are confident that the real estate market will turn and in the upcoming years their investments will be worth it.
In the meantime they will enjoy the residual income that fattens their wallets each month as the rental property remains stable and many are opting to rent these days due to the unstable economy around the world.
Brazil’s economy is strong and it is expected to continue to grow in 2011 and according to research by the Association of Foreign Investors in Real Estate Market (AFIRE), Brazil’s investment property market is one of the hottest places to invest right now.
Brazil has ranked fourth in a list of countries that are predicted to have a great chance of recover, coming in right behind the UK, China, and the USA.
Joao Crestana, president of Sao Paulo SECOVI, states that Brazil’s market is returning to normal following a period of time when supply just wasn’t in competition with demand. He looks for 2011 to be more equal and stable.
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