Brazil's economy has experienced rapid growth. Despite the resulting rise in house prices, this has been lower than in other emerging countries, such as China. In this market situation, the consultancy Savills recommends acting quickly as Brazilian and South American investors are realising the opportunity and want to make the most of it before foreign investors arrive.

Although the average annual increase in the price of housing has been 23% in Rio de Janeiro and 17% in São Paulo, the rental return of their homes is on par with many of the economies of the 'Old Continent', where the residential market provides lower returns to those achieved by the large Asian economies: Hong Kong, Singapore, South Korea and Taiwan.

"Despite the sharp increase in prices, the Brazilian residential sector remains a very interesting destination for investors, especially when compared to other first-tier cities around the world," said Yolande Barnes, Director of Savills Global Research. "This fact provides a sufficiently broad basis for choosing to invest in the country", she added.

Growth driven by sporting events

Residential market development in Brazil is marked by recent oil discoveries, the choice of the country to host the 2014 World Cup and the holding of the 2016 Olympic Games. This has led to an improvement in major cities, better access to credit and, most notably, the development of a middle class that can afford to invest in purchasing a home, with the resulting increase in prices caused by this demand.

Río de Janeiro and São Paulo lead the way in this price increase in the residential market. Since 2008, prices in São Paulo have risen 127%, while in Río de Janeiro the increase has been 189%.

Also during this period rents have risen by around 100%. However, taxes have declined in the past 18 months. Yolande Barnes concludes: "Great opportunities are opening up. The foreign investor will have to control the exchange rate and monitor changes in interest rates and inflation; however, Brazil is still more interesting than other markets in the so-called 'New World', especially Asia. Assuming of course you can get hold of the product before local investors do."

Praia do Forte, for its privileged and unique location, has become one of the most interesting areas for investors looking for something close to a big city but in a unique location that ensures the medium and long-term safety of their investment. Ibersotate offers a wide range of products for them, from luxury apartments to exclusive homes, with a broad spectrum of prices to adapt more easily to the needs of each individual.

Its location, attributes and the guarantee of forming part of the Iberostar Group make an investment in Iberostate Praia do Forte a safe bet.

For more information about our projects please contact us by telephone on 71 3676-4222 or email info@iberostate.com.br