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Brazil’s Rio de Janiero Property Market to Get Boost from Olympics - 4 November 2009

The home of the original Carnaval has had a few more reasons to celebrate recently. This September, Rio de Janeiro secured the bid for the 2016 Olympics, just months after also being named host to the 2014 World Cup. Brazil’s currency, the Real is currently up 25 percent from the U.S. dollar, interest rates have dropped drastically and property values are sure to rise given the government’s likely improvements to clean up its capital in time for these world-renowned, big name events.

In coming months, economists predict that the country’s tourism and the real estate market will also experience a boom, as investment firms report a 60 percent increase in interest in Brazilian properties since August. Foreign investment has grown steadily in the last five years—especially in Northeast resort towns—and many European holidaymakers are attracted to Rio de Janeiro’s warm climate, big city lifestyle and affordable price tag. Homes in the South American powerhouse (the country is positioned to be the world’s fifth largest economy by 2050) are still cheaper than most of Eastern Europe, with Brits representing about one in 15 buyers in Brazil.

Thanks to the country’s Ministry of Tourism, property deals are about to look even sweeter for overseas investors, too. The Brazilian government and national banks are currently negotiating ways to make securing mortgage loans easier for foreign buyers, eliminating some of the hassles of financing from abroad. New mortgage laws will likely go into effect within a year.

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