There are many reasons responsible for the growth of the Brazilian property market today. Due to President Lula's progressive economic policies, Brazil has rapidly developed into a sound economy with a political and fiscal environment conducive to growth. Today, it offers one of the most promising investment properties across the world.
Improved communication networks, and cheap direct flights from most European nations, have made Brazil one of the hotspots for not only the investors but also the tourists. The Brazilian Tourism and Culture Movement has an objective to transform Brazil into one of the 20 most attractive and splendid tourist destinations of the world. This is bound to have optimistic repercussions on the already flourishing investment growth rate in Brazil.
Brazil Trading Partners:
Unlike the United States, Brazil has open trade relations with all countries. Besides, the Brazilian army functions only within the country's borders and so Brazil does not have any real enemy. Thus, investors from any part of the world can expect fair treatment. Brazil is one of the major exporters of agricultural products such as sugar, soybeans, corn and cotton.
Unlike the U.S., Brazil has open trade with all countries despite the punitive import taxes. China, Europe, and even the U.S. need food imports, so they all put up with the 50-150% import duties imposed when they export to Brazil.
Brazil’s Agricultural Edge:
Brazil offers attractive business opportunities in the agricultural sector. Following are the reasons that give Brazil an agricultural edge:
In comparison to the U.S. wherein the average monthly labor cost is $1000, Brazil offers cheap labor with labor cost of just around $450/month.
- Brazil also has abundant land for agricultural use. Besides, the cost of these lands is much less than the cost of land in the U.S.
- It also boasts of a perfect weather condition with year-round sunshine in the middle and Northern regions.
- Brazil has well-developed agricultural technology from EMBRAPA, which is a partnership between the government and university, for the distribution of farming knowledge.
- It also has a well-built transport infrastructure to facilitate the transportation of farm products.
Brazil’s vast population:
Brazil, with a population of around 180 million, has a positive population growth rate of 1.23%. Brazil has a perfect mix of older and younger generation, which adds experience and energy respectively to its workforce.
Brazilian Real Estate Market:
Brazil's new property developments, due to their competitive prices and supreme quality, are attracting attention of investors from different parts of the world. The prominent changes in the rules concerning the property purchases made by the government of Brazil have further increased the clamor of assets from both foreign and local entities.
Investor-friendly policies:
To conduct business in Brazil, an investor needs to have approx. $85,000 on deposit in a Brazilian bank. In addition, the investor also needs to have a natural Brazilian citizen as partner. By following these simple procedures, the investor can conduct a business in the same way as a native Brazilian would. Thus, the investment criteria of Brazil is much simpler than the countries that don’t allow a foreign national to start a land or open business without making a national of that country a 50% partner in the business.