The weak Brazilian currency presents an opportunity to invest in the Brazilian real estate market

Property prices in Brazil currently present an attractive investment opportunity for foreign investors due to the weakness of the Brazilian currency, particularly if you are an investor from Britain or the US with Brazil’s currency currently very weak. Against the British pound and the US dollar, investors enjoy home price bargains rarely seen in Brazil.

It has recently been widely publicized that the Brazilian real has weakened against the British pound and the US dollar in the last 12 months (June 2011 – June 2012). For example, during the summer of 2011, foreign investors could get 1.56 reais for every US dollar; however, in the current market, investors can expect to get two reais to the dollar.

What this means in terms of house prices in Brazil is that a house that cost approximately 200,000 reais in 2011 would have cost $128,205 in US dollars. In today’s market, the value would be around $100,000.

Based solely on these figures, the strength of the pound sterling against the Brazilian real means that for UK investors looking to invest in brazil property in fact, it’s even more affordable, and therefore a much more attractive proposition.

Although many would perceive a weakening currency as a negative issue, from a positive perspective, the declining value of the Brazilian Real means that Brazilian products are better value for money, which has fueled phenomenal growth across the industry. brazilian industrialist.

In turn, the growth of the Brazilian industry increases the level of Tourism to Brazil, with tourists attracted to Brazil to buy cheap products. What this means for the Brazilian real estate market is that commercial properties become attractive to investors. With tourism comes the need for hotels and vacation homes, and foreign investors can take advantage of bargains on private and commercial property and land in a bid to tap into Brazil’s lucrative real estate market.

In 2011 alone, Brazil’s Ministry of Tourism reported 5.4 million visitors to the country, which is a massive increase over 2010 numbers. In the wake of this growth, several massive hotel chains purchased land and property throughout Brazil to collect in. Tourism levels seem to increase due to major sporting events coming to Brazilian shores in 2014 and 2016.

This level of investment has meant that Brazil’s construction industry and housing development companies have also seen growth in the levels of work available to them.