Brazil Property Group Market Intelligence Update

Brazil Real Estate – Brazil Property Group has revealed the top ten reasons an investor should purchase property in Brazil today. Here, BPG owner Michael Greene explains why real estate prices are about to climb even higher.

Sao Paulo, Brazil, September 11, 2007 --( Property in Brazil has been drawing steady attention from knowledgeable investors for years, without ever crossing the threshold to the sort of rampant growth witnessed in Costa Rica or Las Vegas. Now, with resource-rich Brazil poised on the edge of tremendous growth, that is all about to change.

The lack of attention from investors and the absences of a Costa Rica-style boom have more to do with investor unfamiliarity than with any substantive risk. Market figures already reflect a more confident environment for investment—foreign direct investment in Brazil grew 67 percent in 2007 alone, currency reserves stand at 160 billion, and the stock market is up 22 percent year-to-date as of July. Brazil also offers extremely stable conditions for buyers—as long as a buyer possesses full title insurance, lawsuits and foreclosure attempts are nearly impossible.

Read on for ten more reasons to buy property in Brazil today:

1. New mortgage laws
Property has long been an inaccessible investment for a majority of Brazilians—due to a lack of sustainable mortgage products, purchasers must pay for property in cash, severely restricting access to and demand for property. Now, falling interest rates are making mortgages more common. Wide-open mortgage packages will be available to Brazilians by the end of 2008, and thanks to this broadened access, demand for property is on the rise.

2. New ownership laws protect the buyer
Ownership laws in Brazil are some of the most secure in the Americas. They are designed to make ownership more appealing, and foreign investors who have discovered the advantages of buying in Brazil are raising international demand.

3. Easy access from Europe and North America
The Brazilian government understands that tourism and property investment represent important sectors of economic growth. To stimulate activity in both areas, the government is supporting the development of infrastructure across the Brazilian coast. Renovations are in progress at some of Brazil’s older but ideally situated airports, while new airports are currently being constructed to meet the demands of a vibrant tourism market.

4. Outstanding currency appreciation
Outstanding currency appreciation in the country continues to favor investors. Brazil’s currency was approximately four to one to the US dollar in October 2002. Now, following a July 2007 low of 1.84 real to one USD, the rate hovers at two-to-one. Anyone who bought property in 2002 would have doubled his or her money at 2007 rates. With growing economic stability and burgeoning currency reserves, appreciation can only continue.

5. Undervalued Beach property
If you consider that an acre of beachfront property in Florida can sell for as much as $10 million, an acre in the Bahamas for $2 million, and an acre in Costa Rica for $1,000,000, it is stunning to realize that acres bought in quantity in Brazil can sell for as low as $5,000. Prime beachfront lots, packaged in single acres, are equally attractive at $60,000. The room for growth in value is almost unprecedented.

6. Large domestic population
Brazil’s nearly 200 million citizens show increasing interest in buying homes and property. Since mortgages currently comprise only 1.7 percent of Brazil’s GDP, the sector exhibits massive growth potential compared to Mexico’s mortgage sector comprising 20% of GDP. Rises in property prices will accompany growth in domestic demand, meaning the coming boom will be far more sustainable than speculation-driven real estate booms in Central America.

7. Growing economy
Leading investment bank Goldman Sachs predicts that Brazil’s economy will skyrocket from the world’s tenth largest to it’s fifth largest by the year 2050. Beach property values are projected to increase in value until that year, when they will resemble prices elsewhere in the world. This economic growth and stability solidifies Brazil’s status as a fantastic investment opportunity.

8. Value for money
Construction costs in Brazil are half the cost of building in the United States and Europe, suggesting that buyers can afford a higher standard of living from the foundation to the final coat of paint.

9. Favorable interest rates
Brazilian interest rates are plunging, thanks to a huge trade surplus and account balance from a raw material export-driven economy. Rates fell from 18 percent in Sept. 2005 to 11.5 percent today. Brazil’s substantial currency reserves mean rates will only continue to fall, spurred by growing ethanol and mining exports in this resource-rich country.

10. Beautiful beaches
Brazil’s white sand beaches are pristine enough to convince even the most conservative property investor of the coastline’s value. The compelling and economically sound arguments for buying are only supplemented by swaying palm trees, warm weather and the bikini-clad beachgoers who make Brazil’s more than 7400 km of coastline so enticing.

For further information or insight about these findings, please contact Brazil Property Group at

About Brazil Property Group:
Brazil Property Group specializes in assisting real estate buyers and investors seeking to enter the Brazilian real estate market. BPG operates with full in-house legal staffs in both the United States and Brazil, making BPG the most transparent and efficient company in the industry. Our expertise includes real estate market intelligence, real estate, development and non-resident mortgage consulting; full service real estate activities and real estate purchasing support and guidance. Brazil Property Group’s global perspective blends continuous analysis and on-the-ground knowledge to give investors an edge in this burgeoning industry. For further information about Brazil Property Group go to

Brazil Property Group
Michael Greene