São Paulo is the nerve centre of Brazil's economy and industry and the city that is experiencing the most significant growth, according to the book, Brazil Property Market Profile by Daniel Talavera.
It gives analysis and explanation covering a wide range of subjects including the recent history of the country, the pillars of the Brazilian property market, economic projections,
GDP analysis, key industries, geography and infrastructure, the real estate market, tourism, mortgages and finance and legal requirements and restrictions.
'Brazil is a novel and distant market for the property investor which has grown with the improvement in macro-economics. If we balance the positive and negative aspects of the Brazilian market and project them in the short/medium term, real estate investors in search of emergent markets outside Europe can congratulate themselves on having found a very viable alternative,' Talavera says.
He outlines the positive and the negative aspects of the market. On the plus side is the fact that Brazil has become an economic power that does not depend exclusively on natural resources. It has developed other industries such as technology and cars.
Also the internal demand for properties from a growing middle class means an increased supply of and demand for financial products. Since December 2002 the volume of banking credit has increased by 300%. In the last twelve months alone it has grown by 103%. Inflation is low and the cost of properties is low.
The main downside is that the administrative system is highly bureaucratised. Foreigners cannot obtain mortgages from Brazilian organizations. To do so they need a residence visa. Interest rates are high, deficient infrastructures do not help economic development and the net debt of the public sector continues to be high at 41.4% of GDP.
