Brazilian property investments are "there for the taking"

Photo credit: Adrien Vieira de Mello

The investment consultants' report highlights the FIFA World Cup and the upcoming 2016 Olympic Games as major drivers of the country's economic and housing market growth, describing Brazil as having "the world's most exciting property".

“Hosting two of the world’s major sporting events within the space of two years has increased the need to improve infrastructure and the evidence is there for all to see in Brazil’s major cities," comments Loxley McKenzie Managing Director of Colordarcy.

"With an economy that has grown rapidly, Brazil looks set to continue offering investors high emerging market returns at low risk.”

Looking at the property market as a whole, the report reveals evidence of some of the dramatic increases in property prices seen since 2009. Indeed, in 2013, national growth averaged 12 per cent, while data from polling firm Ibope shows that Sao Paulo has seen new home prices jump 85 per cent in 24 months. That growth is set to continue by 10 to 15 per cent per annum.

Colordarcy dismisses concerns of a potential price bubble as "highly improbable".

"Unlike property markets elsewhere in the world, we should remember that Brazil is still an emerging market and most of its population have yet to see property as a Pure investment," reads the report.

Young professionals, meanwhile, are "struggling to afford the kind of prices now being asked for in good areas", adds Colordarcy, highlighting the buy-to-let potential for major cities. Indeed, yields in Sao Paulo range from 8 per cent to 11 per cent, while visitors flocking to the country for the sporting tournaments will boost interest even further.

"The opportunities to make money from investments in sectors like social housing (Minha Casa Minha Vida) are certainly there for the taking," says McKenzie.