Investors in real estate have limited markets to look at in the current investment climate. The global recession has led to virtual stagnation in the property market in almost every country. But there are some regions where the trend is being bucked and one such region is the Bahia area in Brazil.
Bahia is a popular state in Brazil
On the north-eastern shoreline of this exotic South American nation is Bahia, one of the most exclusive states on the Atlantic coast. The most important attraction of the state of Bahia, especially with the onset of the 2014 FIFA World Cup, is arguably the evergreen property market. Indeed, the current Bahia Brazil real estate developments are some of the most advanced in the country. They range from tower block residential areas to burlesque or low-lying beach villas.
Brazil real estate has traditionally been overlooked by investors because the market tended to be sluggish. One of the reasons was that under Brazilian law, banks were not allowed to repossess properties when owners defaulted on loans, and this meant that very few mortgages were issued. Since that law was repealed, the property market has dramatically opened up and many experts compare the current real estate boom in Bahia to the southern European boom of the 1980’s and 1990’s.
Brazil’s economy is growing on a par with the economies of India and China and its predicted that Brazil will be the fifth richest nation in the world by 2030. This means that Brazilians are earning more and more disposable income and that gives them the opportunity to purchase real estate for investments purposes. Allied to this trend, the Brazilian real estate market, particularly in regions like Bahia, is also attracting a lot of interest from investors from other countries. There are many attractions for foreign investors in the Bahia area. Its continued growth as a home holiday destination is complemented by a growing number of foreign holidaymakers.
Real Estate and Foreign Investments
The Brazilian government actively encourages foreign investment meaning the real estate market is a level playing field for both residents and non-residents. Construction costs in terms of both labor and materials are substantially lower than in more developed markets. Completed property prices are also significantly lower than similar properties in the US or Europe. And unlike many other developing countries, Brazil is a stable democracy offering secure and safe investment opportunities. The Brazilian government is also spending vast amounts of money on developing the infrastructure in the Bahia area, leading to easier access by road and air.
The biggest numbers of Bahia Brazil real estate developments are beach resorts that offer upscale accommodation for tourists from the Hispanic community and other far-flung destinations, including North America and Europe. There are also high-end accommodation venues that rank among the best in the country due to their ecological and business-friendly offerings. They contain a sauna, inbuilt swimming pools, conference rooms and terraces for observing the sea expanse around. Among the leading beach resorts include hotels that offer accommodation, entertainment, and dining facilities.
As the country and its people continue to grow wealthier, the demand for new properties will continue to rise and the property boom in Bahia, Brazil, looks set to continue into the foreseeable future. When you like to see some outstanding property listings, please use this link to property bahia brazil.
Itacaré Eco Resort
A brand new real estate investment plan is developed near the coastal town of Itacaré. Investors buy property there in order to secure a residence in a beautiful area during a period of the year. For the remainder of the year will it be rented out by the Eco Resort booking department?