Why Brazil? The country is secure and offering high growth potential. There is no doubt that the global economic downturn has affected Brazil, but to a far lesser extent than elsewhere and it is also demonstrating a better recovery. It has strong economic growth and strong economies make strong property markets.
In Brazil there are compelling reasons for stability: Its age profile – Brazil has a young population with an average age of 25 and only 7% of the population over 65. Rising housing deficit – there is currently a shortage of around 7million units and this is growing. Demand will exceed supply for the next few years. Food prices are rising Agriculture is underexploited It has a long lasting energy supply Improving commercial performance.
Brazil has an abundance of natural resources and is a world leader in the export of food and raw materials, taking advantage of particularly strong demand from China. It is self-sufficient in oil, with huge oil reserves off its Atlantic coast. In the 1970s Brazil imported almost 80% of its total oil consumption but it is now becoming virtually energy independent. It is fortunate to have a great variety of energy sources available – oil, gas, hydroelectricity, biofuels – and it has become a world leader in renewable energy. Sugarcane ethanol and bioelectricity are produced from sugarcane waste and this makes sugarcane the largest source of renewable energy in Brazil. With the largest sugarcane crop in the world, Brazil is also the largest exporter of ethanol.
In 2014 and 2016 the eyes of the world will be on Brazil as it hosts the World Cup and Olympics. In preparation for these events, the Government is investing millions in improving the country’s infrastructure. Housing is also a priority, with investment being made through funding for developers and mortgages for house buyers. Mortgages have only been available since 2007. The economy is strong, people are getting richer and 55m have entered the middle class in the last 3 years, bringing it to a total of 85m.
As well as Brazil with a strong national economy, 4:Property have chosen a State with a strong economy. Sergipe is the State with the highest income per head in Brazil and the second highest car ownership per head, second only to Sao Paolo. Its capital, Aracaju, is oil-rich and growing, with its population expected to rise by 50% between 2010 and 2015.
Residential property projects in Brazil earn strong returns and 4:Property Brazil is creating a portfolio of diversified sites for our investors. To learn more about our opportunities for investment, visit our website.