Tourist growth helps demand for property in Brazil

  • 13 years ago
  • Uncategorized

An increase in the number of
foreign tourists heading to Brazil is resulting in a rise in demand for
property in the country from foreign investors.

With two major sporting events
lined up in the next five years, tourist numbers in the South American country
are set to continue to rise.

Tourist figures up 18.8 per cent in a year

The latest figures from the
Brazilian Ministry of Tourism show that 4.4 million tourists arrived in Brazil
in the first six months of 2011, an 18.8 per cent increase on the same period
in 2010.  And, Business Monitor International is now forecasting an increase of
21.5 per cent in arrivals to the country between now and 2015.

 More international flights to areas such as Porto Alegre and
Fortaleza have helped and the increased numbers of visitors are expected to
contribute $9 billion to the economy by 2015.  Add onto this the impact of the 2014 World Cup and 2016
Olympic Games and Brazil seems set for a tourist boom over the next few years.

Investors from around the world snapping up property in Brazil

This increase in tourism is also
helping to drive demand for property in Brazil as investors arrive in the
country from all over the world. Property Abroad reports that ‘property
companies reporting huge increases in foreign demand.’

This demand from overseas
investors is on top of huge domestic demand.  Recent figures show that the country has a 7 million
shortage of homes with the country’s population set to increase by a fifth over
the next decade.

Brazil remains one of the
strongest property markets in the world and investors are securing 6-7 per cent
rental yields in apartments and townhouses in some of Brazil’s major
cities.  Occupancy in the country is
high and rising domestic wealth also means there is strong resale demand for
these homes.

Author Nick Marr

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