Brazil property party is still only getting started

Brazil property investments have been getting more than their fair share of positive press over the past, well it seems like ages now!   Seldom is a bad word written about property in Brazil, unless it is followed up with words of potential and encouragement on facing the challenges ahead. It is expected that the economy will be recorded to have grown by some 7.5% in 2010, impressive stuff when much of the western world is struggling with huge budget deficits and struggling economies.   Brazil of course has it own challenges: education, infrastructure, corruption, crime, strong currency just to name a few –“here comes the but!”, but these are challenges that are envied worldwide, as the sleeping giant seems to have finally awoken. With the foundations of the package of economic policy reforms in the “Real Plan” put in place by twice President Cardoso (1995 -2002) and largely continued by the popular Lula da Silva, President Dilma Rouseff couldn’t have taken control at a better time. Some politicians comment that the train is moving too fast now, for anyone to derail regardless of their political slant. With a housing deficit of some eight million properties, Brazil’s housing market is expected to continue to grow until at least 2025, when based on current market trends supply of Brazil property will finally catch up with demand. (Source FGV) The government’s popular Minha Casa Minha Vida initiative implemented under Lula regime, well financed and underwritten by State Bank Caixa Economica is planned to make a dent in the deficit by three million homes by 2014. C-Class housing projects for the booming middle class are being developed across the country to and are closely being eyed by investors. Unlike high profile property markets that have been fuelled by speculators, the demand in Brazil is almost entirely local. That has to be a positive thing for investors as there is clear local demand across the country and that means an exit strategy – key for any successful property investment.
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