Brazil is 'well-oiled' for success

Rising oil prices could have a galvanizing effect on Brazil’s property market…

Two oil and gas discoveries in the last three months off the Coast of Rio de Janeiro will catapult Brazil into the top ten list of oil producing nations. With oil starting to flow in 2010, the economy of Brazil and thus property prices are expected to receive a major boost.

The confidence of international investors is best exemplified by the massive growth of foreign direct investments (FDI) flowing into Brazil in 2007. FDI doubled in 2007 to $37.4bn, exceeding FDI for Japan and India. Brazil was the third largest recipient - China was #1 and received $67.3bn. However, to put this into context, China's FDI is not even twice the FDI of Brazil although China has a seven times larger population.

Why are the oil discoveries and the FDIs so important for property investors in Brazil? Other countries which have seen a similar oil boom and foreign interest such as Norway and Dubai, have equally seen their property market post record price increases year after year. House prices in Norway and Dubai increased between 2000 and 2007 at an annual rate in excess of 15%.

Affordable hotspot

However, Brazil has more to offer than exciting economic prospects. Great weather year round, fabulous beaches and a famous life-style make Brazil an attractive property hotspot for international investors. It also has a very affordable cost of living, only a fifth of the UK, making it a very reasonable place to stay for the short and long term.

For a holiday home, second home or retirement home, this is one of the best places to look. The Brazilian property market today is where Spain and Portugal were 25 years ago. Investors in Brazil can acquire beautiful properties in stunning surroundings, at prices simply unobtainable in most other overseas destinations.

Luciane Pinto of Brazil Property Advisors commented:  ‘Since Brazil is still an emerging property market, we guide UK buyers through the entire buying procedure. Many investors are bewildered by the procedures in Brazil we aim to make the purchase as easy as possible. They have a network of lawyers, financial advisers and money transfer companies in the UK and in Brazil.'