The Brazilian newspaper, O Globo, highlighted this Saturday, June 25, the recent increase in demand for real estate in Brazil from foreign buyers. According to the newspaper, the buy mostly in Rio and Sao Paulo, and more and more foreigners are investing in the Brazilian real estate sector, attracted by the booming economy. The volume of trading in real estate has skyrocketed. In Sotheby’s International Realty, real estate arm of the British auction house, sales should quadruple by the end of the year, reaching R$ 400 million.
The profile is varied and the currency is the million: executives who come to live in the country to work, other that live abroad but spend a few months here and rent the property in the rest of the year, and people interested in making profit with the rent or resale of the properties. The amount traded goes on average from $ 1 million to $ 4 million, but the J & A cites business of up to $ 12 million. In Rio, the most sought after neighborhoods are Leblon and Ipanema. According to Secovi-Rio, Leblon square meter is now worth U.S. $ 13,997, up 44.9% from June 2010.
Risks are present
The decision to invest in real estate today must take into consideration factors such as the prediction of rising interest rates, which would raise the cost of credit, and even the lack of liquidity, experts say. For economist José Ricardo de Almeida, a finance professor at the Institute of Education and Research (Insper), the properties have appreciated significantly since the beginning of the fall in interest rates in 2003, when the increased volume of credit and demand grew. But he believes that the new round of high basic interest rate the investor take back to the most profitable applications, albeit with higher risk:
A finance professor at PUC-SP, Fabio Gallo does not believe that investing in real estate is a good option for foreigners or Brazilians, due to the problem of liquidity girl likes girl xx.
Mauro Sergio Oliveira, an economist and CEO of the Olive Tree Trust – real estate fund manager – also points that the recent high prices are another difficulty of investing in real estate, mainly in Rio and Sao Paulo.
Read more about this in # http://oglobo.globo.com/economia/morarbem/mat/2011/06/24/aumenta-venda-de-imoveis-para-estrangeiros-924765729.asp ixzz1QJ4CIrut