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Top Spot for Brazil Property Investment

As 2009 comes to an end, property investment analysts are busy making their predictions for next year. For those who have been following the prospects of property investment in Brazil over the last 18 months, it will come as no surprise to discover that for Homesoverseas.co.uk, Brazil is the best bet for 2010.

In the Homesoverseas Top Ten Overseas Property Investment Destinations for 2010, Brazil is number one. According to the property portal, reasons for this top ranking are multiple. Brazil's economy is currently doing well and its performance is expected to make in excess of 5% growth in 2010. The Brazil mortgage market is booming and the country has a huge shortage of property at all levels. And, perhaps the icing on the cake, Brazil will host the World Cup and the Olympics in 2014 and 2016.

Brazil has been a favourite with property investment experts for a few years, but only now is its full potential starting to emerge. This is shown by the fact that in the Homesoverseas 2009 ranking, Brazil made it into fourth position. Its top position just one year later proves that opportunities for property investment in Brazil are improving all the time.

Homesoverseas reports that the market for Brazil real estate is booming - "property investors from around the world are flocking to Brazilian shores with a view to snapping up real estate, in anticipation of future capital growth". This snapping up of Brazil property is not just confined to the international market. Plenty of Brazilians are also making property investment and many of these are investing for the first time. Cheaper interest rates and improved mortgage products mean that homes are more accessible and as a consequence, Brazilians are busy buying property.

For those at the lower end of the market, the government housing scheme, Minha Casa Minha Vida, provides a precious opportunity for low-income Brazilians to get their foot on the first rung of the property ladder. Under the scheme, whose budget reaches a staggering R$34 billion (around £11.5 billion), millions of Brazilian families will benefit from the 1 million houses to be built before 2011. Minha Casa Minha Vida aims to alleviate the chronic shortage of properties in Brazil by some 14%.

The main consequence of this increased interest in property and shortfall of homes will be rising prices. Just how much property prices will go up by is difficult to predict, although double figures for the next few years seem more than likely. Homesoverseas cites a local expert who believes price appreciation on Brazil property investment could reach 200% over the next ten years.

With 2010 just around the corner, Brazil is undoubtedly on the brink of a very exciting decade. By 2020 - if not before - Brazil is expected to become the world's fifth largest economy and will have earned itself a consolidated place in the global arena. At Obelisk, we agree with Homesoverseas in that Brazil property investment is your number one bet for 2010. We also believe that Brazil will be a top destination for a good few years after that as well.

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