There are many reasons why you should consider investing in Brazil. Here are a few:
- Growing economy
Brazil is one of the four largest developing economies in the world (the three others being China, India and Russia) with an annual GDP growth of approx 6%. According to Goldman Sachs, by 2050 Brazil will be the world’s 5th biggest economy
- Under priced real estate market
Due to continuous years of lack of purchase power during the 80’s and 90’s, the price level for real estate in Brazil is still extremely attractive. Now that the economy is growing and inflation is low, the 192 million Brazilian population is starting to buy property with bank financing just like the populations in all western countries, it is expected that property prices in Brazil will increase steadily for the foreseeable future.
- Growing mortgage market
Historically banks in Brazil could by law not repossess a property if the client defaulted on a mortgage, hence virtually no banks borrowed money. Only a few years ago, the law changed and now the brazilian mortgage market is growing very fast. Currently total mortgage values represent only 2% of the Brazilian GDP, however the Brazilian government expects the Brazilian mortgage market to grow 600% by 2014, with total mortgage value reaching 12% of GDP. As a result, an increase in value of Brazilian real estate will take place across the nation for the foreseeable future.
- Long term future market stability and existing demand
Brazil has a population of approx. 192 million. Brazilian middle class is already at 100 million and is forecasted to grow to 65% by 2016. Along with future domestic economic growth and increasing spending power of the big Brazilian population, this trend is set to continue. No other emerging market can equal the strong Brazilian long term demand.
- Low construction cost
Compared to most other destinations, building costs are low in Brazil. This represents excellent opportunities for property investors as they can buy a property in Brazil for a bargain price compared to what the future price level will be. Along with economic growth, building costs are set to increase. Investors that invest in Brazilian property while the building costs are low, stand to gain the most.
- Low cost of living
Brazil enjoys a low cost of living with salaries at 270 EURO/month. Compared to other more traditional destinations (Spain, France, Caribbean etc.), in Brazil you can afford a far more relaxed and luxurious lifestyle at a fraction of the price.
- The exchange rate is still favorable
At the moment the exchange rate is still favorable, making it very cheap for foreigners to buy property in Brazil. In the past, the Brazilian currency was artificially linked 1:1 to the US $, and most prices still reflect old price levels.
- Permanent visa are offered to investors
Permanent residency is offered to foreign investors whom invest at least R$ 100,000 into a Brazilian company. The residency status removes the time limit when entering the country (the equivalent of the US Green Card), it also reduces company taxes tremendously. After 4 years of residency in Brazil, one can apply for Brazilian Citizenship and obtain a Brazilian passport.
Property ownership is 100% freehold and secure. There are no restrictions imposed by the government for foreigners buying property in Brazil. Brazil receives international investments with open arms, assuring respect to contracts and the rights of foreign investors.
- Extremely friendly people
Studies carried out by Ministry of Tourism indicate that 75% of the tourists who seek Brazil as their vacation destination do so first of all because of the natural beauty. But once they arrive here, they find such hospitality that they soon become enchanted with the mixture of colors, races and cultures of the people as well. In a recent survey, 96% of the tourists visiting Brazil definitely intend to come back again, the main reason being the Brazilian people! That if anything, gives confidence in the growing tourism industry in this exciting country.
- Tourism in Brazil is a growing sector and key to the economy of several regions of the country. The country had 5.1 million visitors in 2010, ranking in terms of the international tourist arrivals as the 3rd main destination in South America after Mexico and Argentina. Revenues from international tourists reached US$5.9 billion in 2010, showing a recovery from the 2008-2009 econimic crisis. Historical records of 5.4 million visitors and US$6.775 billion in receipts were reached in 2011.
- Visitors to Brazil spend twice as much as they use to
Brazil offers for both domestic and international tourists, an ample gamut of options, with natural areas being its most popular tourism product, a combination of ecotourism with leisure and recreation, mainly sun and beach, and adventure travel, as well as historic and cultural tourism. Among the most popular destinations are the Amazon Rainforest, beaches and dunes in the NortheastRegion.
- Big domestic tourism market
When Brazilians plan their holidays they don’t have to look any further than their own border and they usually head to the northeast of Brasil (because of the climate). Last year the domestic tourist arrivals was 45 million in Brazil. Along with economic growth and spending powers of the large Brazilian population, this market will grow extremely fast and is having a positive impact on coastal property prices.
- Active international tourism promotion policy
Tourism promotion is a top priority in the Ministry of Tourism’s agenda and the National Tourism Plan is clearly working. Brazil has seen over 100% increase in foreign tourism revene between 2003 and 2011 (from US$ 2,5 Billion to US$ 6,7 Billion) as a direct result of the National Tourism Plan (developed in 2003). The year of Brazil was declared in France in 2005, following the success, the following countries will be participating : Belgium (2011), Italy (2011), Portugal (2012), Germany (2013)
- Direct flights from the USA
Recently Americans has taken an interest in the area and flying time from Florida is only 6 hours. The northeast of Brazil now benefits from three major tourist markets: Europe, USA and the big and fast growing Brazilian market.
- Foreign investment is encouraged
There are no restrictions imposed by the government for foreigners buying property in Brazil. Brazil receives international investments with open arms, assuring respect to contracts and the rights of foreign investors. Property ownership is 100% freehold and secure.
- Complete lack of natural disasters
Compared to many tropical destinations, Brazil benefit from a complete lack of natural phenomena such as hurricanes, tropical storms, flooding, tsunamis nor is it affected by earthquakes.
- Brazil is a peaceful country
Brazil, though it is one of the worlds largest countries is rarely in the forefront of world politics, due to this it is not considered a target for terrorism. The nation has also enjoyed decades of democratic government rulership and is considered a very peaceful country without political tension.
- Security and safety has improved significantly, ranking from 128th place in 2008 to the 75th place in 2011.
- Brazil is one of the countries most tolerant and open to cultural differences in the world (a real melting pot)
- The purest air on earth!
According to research done by NASA, the northeast of Brazil has the purest air not only on the continent, but also in the whole developed world!
- The Preá and Jericoacoara region has been receiving huge funds from both the State of Ceará, the Federal Government and the Tourism Ministry.
- The newly completed CE-085, state road directly linking Fortaleza to Preá has cut down the transfer time from Fortaleza to 3h30 minutes (from 4h30). It is also much safer & nicer than the previsouly Federal BR-222 mostly used by trucks loaded with merchandise.
- The International Airport of Jericoacoara, a R$ 55 Million invesment is currently being built 15 km from Preá. 80% of the 2,200 m long x 45 m wide runway is completed. Construction of the terminal which will handle up to 1,200 flights per year and receive Federal Agents for Immigration and Customs was started in February of 2012. The completion date for the International Airport of Jericaocara is scheduled for the end of 2012.
- The northeast of Brazil is the Nr. 1 area receiving international investment.
It will benefit from massive investments along the coastline. In the coming five years, billions will be invested in hotels, resorts and golf courses.
- The northeast of Brazil benefits from the best climate on the continent
Located only a few degrees from the Equator, the seasonal variations are minimal with an annual average temperature of 27C and the weather is stable and sunny all year around. As a result, This area has established itself as the leading beach tourism destination in Brazil and its coastline is famous for its stunning tropical never ending beaches lined with coconut trees, lagoons and sand dunes.
- Flight time to Fortaleza is only approximately 7 to 9 hours from most European cities. As a result, several operators have started direct flights and today tourists from Spain, Portugal, Italy, Scandinavia, France, England, Holland, Argentina, Germany and USA are all finding their way to this tropical paradise.