At the end of last year, experts indicated that the Brazilian real estate market would begin to live a moment of accommodation. It was predicted that the value of real estate would not be at the level of what had been in recent years. However, this scenario has not materialized in 2012. In the city of Rio de Janeiro, the square meter continued to appreciate on average 8.47% in the first five months of 2012, a rate slightly lower than recorded in 2011.
According to most specialists, analysts were induced to error due to the feeling that the market would suffer an adjustment on account of bad results of homebuilders listed in the Stock Exchange of São Paulo. An even bigger mistake was predicting that the market would suffer a slight slowdown in Rio. The state will continue living a moment of great appreciation in property values in 2013, especially for new releases. Rio will continue to record valuation due to major events like the World Cup and Olympics, combined with strong investment in the oil and gas and shipbuilding.
But note that the price of real estate in recent years has risen far beyond the income of brazilian buyers and borrowers began to worry about the industry. However the policy of reducing interest rates for all credit lines and other facilities promoted by public and private banks, pressured by the government to try to boost the country’s growth, eventually benefited the real estate industry and the Brazilian government did what it does well, makeup sales and growth in these cities. Just wait because soon the bubble will deflate and prices are going to start to fall in these cities, simply because there is nobody to buy so expensive real estate.
For this and other reasons, forget Sao Paulo and Rio de Janeiro for now if you are an individual investor. If you are looking for properties in the range of R$ 300,000, approximately US$ 140,000, seek information about the following cities:
Niteroi Niteroi is a very popular city and will continue to attract more people. The high-level professionals who will work in Comperj, the petrochemical comples being built in Sao Goncalo and Itaborai, rio outside of Rio will live in the city. Niterói still enjoys the reputation of being a city with the best quality of life in the country and life less hectic than the state capital. There will be great valuing in neighborhoods like Center Niterói, due to the reorganization that the region will suffer, and Charitas, due to commercial investments. Search information as well about cities north of Rio de Janeiro, like Marica, Cabo Frio, Macae, Rio das Ostas and Campos dos Goytacazes. All these cities are receiving a lot of investment related to oil and gas and are poised to growth. Maybe your dream beach property or inn at the beach and simple life, will not be at the beaches of northeastern Brazil but in the north of the state of Rio de Janeiro!
Small capitals of the Northeast: will continue to grow and benefit from tourism from Brazilians from other states due to duplication of the BR-101 highway that cuts through Brazil from north to south through the coastal states. Furthermore, these cities will have population growth coming from other states behind declining quality of life in the southern states, but still present in these cities in the Northeast. There are good properties of 2 and 3 bedroom on Natal and Joao Pessoa, perfect to buy and rent, or sell in the near future.
Coast of Parana: The reconstruction of the region is leading private investment there. Paraná builders started to study developments in the coastal cities that have been primarily demanded by buyers interested in second homes on the coast, before a phenomenon restricted to the coast of Santa Catarina. Cities such as Antonina, Guaraqueçaba, Guaratuba, Morretes and Paranaguá have good infrastructure and offer several real estate launches in this price range.
There are several other areas where accelerated growth and increased supply of jobs in regions away from the coast, as the interior of São Paulo, but I focused only on coastal cities since most foreigners interested in buying in Brazil have interest in these areas. But i could not fail to mention also states in the North, that although away from the spotlight and global tourism, also have options for investors: all the Northern capitals have several real estate launches with prices well below those of São Paulo and Rio de Janeiro.
And you, where would you invest in Brazil nowadays?