Investors turn to Brazil for quick wins
As the population of Brazil continues to be rocked by political uncertainty, amid an unstable economy experiencing steep decline, overseas investors are looking to the country’s property investment opportunities in search of a quick win. Companies are keen to identify “stranded” properties from a surplus of stock and secure large discounts on them. By buying at a low in the country’s economic cycle investors hope to make a return on their purchases when the economy picks up in the future.
With public interest still being tested, following the Olympics consumption of sizable state funding, larger cities in particular are feeling the majority of the service short falls. This snowballing situation is the product of low economic performance and political uncertainty. The economic blood in the water often peaks interest, due to the good opportunities for investors looking to enter the market at the bottom of the cycle.
With many people waiting for the state to produce some clarity moving forward, it will be some time before Brazil passes major economic millstones. If reform is going to happen it will result in the further depreciation of residential and local market assets.
The greatest opportunities today are in the residential segment, with the high number of cancellations. The slowdown is clear as dissolutions in construction between January and September 2015 were at a record high of 41 percent.
The Brazilian housing market fell as much as twenty percent in 2015. Political and economic factors are likely to continue to affect consumer confidence and it is thought the local housing market will continue to contract this year.