Riding high on a booming economy, sales of real estate in Brazil have never been busier. And the good news for investment is that there’s still plenty of room for growth.Get more details about   https://www.globalrealty.com.mx/

Brazil is currently a global hot spot for property investment. Developers at all levels are experiencing strong quarterly profits and regularly announcing new developments. Mortgage financing is also enjoying a heyday with practically all Brazilian banks announcing new records almost monthly.

And more importantly, demand for property in Brazil is at unprecedented levels. In addition, demand is likely to remain high for the foreseeable future despite the huge increase in property investment.

Sales activity is at record levels and developers are struggling to keep up with the increasing number of Brazilians keen to get on the property ladder. While in the ’90s Brazil was building between 100,000 and 200,000 units a year, that figure is now nearer 800,000. However, this is not nearly enough meaning there is no danger of a property bubble in Brazil. Chief Executive of PDG Realty (one of Brazil’s largest real estate companies), Zeca Grabowsky recently explained to Reuters this demand. “It’s far from a bubble. This is real demand.” he said, “It’s people buying their home for the first time”.

Along with most developers with investment in Brazil, PDG Realty has just announced record profits for Q3 this year. With profits of R$262 million, PDG Realty is seeing burgeoning sales. Compared with the same quarter in 2009, PDG Realty sold 62% more properties between July and September this year and launched 79% more units.

Construction volumes in Brazil this year have approached those in Mexico, a country that is considerably smaller both in terms of size and population. Because of Brazil’s huge size and the demand for property, Mr Grabowsky is convinced there is plenty of room for more construction.

Attempts are being made to meet the demand for property in Brazil. At the lower end of the house price scale is the government-backed social housing programme, Minha Casa Minha Vida busy building 3 million homes for low-income families. However, these will meet just 40% of demand for homes among the lower middle classes.

Homes for more affluent Brazilians are also springing up all over the country, but these are unlikely to be enough. The increasing population and rising purchasing power are continually adding to demand. Ernst & Young have predicted that 37 million properties will be built in Brazil over the next 20 years. In property investment terms, that is real demand.

For Obelisk, the demand levels for property in Brazil are one of the reasons we believe the opportunities for investment are so good. Our Brazilian investments encompass different areas of property development, all of which are fuelled by Brazil’s inexorable demand. Like other real estate companies, we are also convinced that demand in Brazil is here to stay and along with it, some of the best opportunities for high returns currently available.