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Brazil’s Emergence In Foreign Real Estate - 27 July 2011

As the global economic crisis continues and the US stands on the brink of default, investors are seeking stable and untapped economic resources. As in times past, when the securities, commodities, and currency markets have experienced volatility, investors have looked to real estate as a safe bet.

Examples of such markets include the BRIC countries. BRIC is an acronym for Brazil, India, and China, which comprise the world’s fastest growing large economies, and thus they hold opportunities for economic growth and investing success. Nevertheless, China’s lack of transparency and India’s poor infrastructure have enabled Brazil to stand out from the pack. Brazil’s smaller population also renders administration more manageable, producing a simpler business environment and more effective government.

Brazil boasts a breath of opportunities for the overseas property investor. Rio de Janeiro is amongst Latin America’s top holiday destinations, with 45 miles of white sandy beaches and everlasting mountains. If one seeks proximity to business and government, Sao Paolo is the city for you.

The process of entering the Brazilian property market is relatively straight forward. Brazilian law permits foreign nations to own real estate in their own names on a 100 percent freehold basis. After obtaining a CPF number (Cadastro das Pessoas Físicas), a tax registration number, and the buyer will be able to open a bank account and apply for utilities.

Latin America possesses an asset rare in emerging markets such as Asia, and especially in Africa: relative peace. As North Africa and the Middle East reel from the Arab Spring and Asia is as uncertain as ever, Latin America is increasingly seen as a safe investment for those interested in foreign property. Outside Rio and Sao Paolo, other lucrative real estate markets include North Eastern Brazil, particularly the Bahia region, which has attracted as much as 20 percent annual capital appreciation. Outside China and India, only one emerging market has been seen as being able to take on the US. It is easily Brazil, and the time to buy property in Brazil is now because it might not long before the competition arrives.

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