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Property Investors Hopeful for Brazil’s Future - 26 August 2010

Brazil is poised to become one of the dominating forces in the overseas property market, according to experts. Within the last few years, the Brazilian government has been giving the country a political and structural overhaul in preparation for the 2014 World Cup and the 2016 Olympic games.

Rio Grande do Norte, a popular tourist region, has received the largest sums of money for infrastructure and accessibility improvements. Properties there not only remain affordable, but now they’re easier to get to from the state’s airport, which offers more flights from Europe and the U.K. than it has in the past.

As a result, tourism in Brazil increased 7 percent last year, despite holidaymaker’s curbed spending in more traditionally popular destinations.

All this change has piqued the interest of foreigner investors who are looking to pour money into Brazil’s tourism and real estate sectors. With Brazil’s current shortage of homes, investors are snatching up properties in anticipation for future price increases—numbers that could rise as high as 200 percent by 2020, according to experts. The mad rush to buy isn’t expected to over-saturate Brazil’s market either, as even more development is underway.

President Luiz Inacio Lula da Silva has agreed to build one million new properties in Brazil by the end of the year, and even Donald Trump and General Electric Real Estate have invested in massive future developments.

What makes Brazil’s property market both promising and risky is that it is emerging; it hasn’t been tested time and again like France’s or Spain’s. But with its economy positioned to be the fifth strongest in the world, many investors are willing to take a chance on buying property in Brazil.

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