Brazil property market showing upward trends

Brazil's property market, especially its beaches are showing improving growth and demand is high.  Figures show that demand is high for land, second home purchase and for both domestic and international property developers.

Brazil's 42 beaches attract millions of visitors from around the world, especially from Europe and the United States. Now, due to an improving economy, investors see Brazil as an ideal location for investment potential, especially the tourism popular beaches.

According to the Brazilian government, the country's GDP is up, national inflation is on the decline and housing loans for new properties have rise some 98 percent over the course of 2007. While domestic investment does account for much of this, new figures show that the relaxed investment requirements for foreigners has allowed the spur of second home growth. Vacation and second home sales are high.

Fuelling the benefit of purchasing property in Brazil by foreigners is the low cost of living, often times 15 to 20 percent lower than countries in North America and Europe. Additionally, the economy's strength, which according to Bloomberg News rose 5.2 percent by September, is another benefiting factor.

The property market boom here has been in place since 2004. The largest areas seeing growth including tourism (beach front properties are available) as well as middle income housing and industrial warehousing.

The largest demand for Brazilian property does focus on the Atlantic beaches. The largest draw are beaches to the north and east, particularly.

Figures from Abecip show that home loans have reached some $9.4 billion during the period of January through November of 2007. This is coupled with the increase in new homes financed, which hit records at over 177,000. These figures show an increase of some 73 percent over the previous year's sales.