Sotheby’s See Big Potential in Brazilian Real Estate | Obelisk International

For Sotheby’s International Realty, Brazilian real estate represents value. And the company highlights homes in the north east as Brazil’s top property investment.

In a recent visit to Brazil, the Vice-President of Sotheby’s International Realty, Peter Turtzo offered his thoughts on the situation of the Brazilian property market to the fortnightly business magazine, Exame. The interview covers aspects of real estate in Brazil such as price trends, the possibility of a bubble and the location of Brazil’s best value property.

Property Prices

On the subject of price changes, Mr Turtzo believes prices for property in Brazil will rise over the next few years in line with continuing job creation. He claims that prices are rising because the Brazilian government “is doing a great job in encouraging people to buy their own homes”.

A large part of this government stimulus comes from the social housing programme, Minha Casa Minha Vida, providing homes for 3 million Brazilian families. For Mr Turtzo, government activity has provided “a solid foundation for the Brazilian real estate market” because it starts a chain of purchases, which activates the property market at all price levels.

Future for Property in Brazil

When asked about the possibility of a bubble forming in the Brazilian property market, Mr Turtzo made it clear he believes this isn’t the case. For Mr Turtzo, Brazilian banks are not making the same “foolish mistakes” made by banks in developed countries where homebuyers “only needed to prove they were alive to get a loan”.

Mr Turtzo sees completely different credit standards and requirements in Brazilian banks. He is therefore confident that Brazil will not suffer the same problem that led to the creation of a real estate bubble in other countries such as the US, Spain and Ireland.

Best Property Investment in Brazil

When asked which is the best location in Brazil for property investment, Mr Turtzo claims north east Brazil represents the best value. Here, prices per square metre are “very attractive”.

During his worldwide tour of Sotheby’s International Realty offices, Mr Turtzo has seen big interest in foreign investment in Brazil. He has noticed how the world’s perception of Brazil has changed since Brazil was awarded the World Cup and Olympics.

However, although Mr Turtzo sees interest in Brazil from foreign buyers, he believes that the main demand for real estate in Brazil comes from the Brazilians themselves. Obelisk International market research confirms this belief, also upheld by other analysts of the Brazilian property market. Brazil’s huge population with its ever-increasing purchasing power is both a massive driver of demand for homes and the creator of excellent opportunities for real estate investment in Brazil.

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