Brazilian Real Estate Better Investment Than Gold | Obelisk International
2010 was an outstanding year for investments in Brazil, particularly real estate and commodities. And investments in Brazilian property made higher profits than investment in gold.
Commodity investment in gold was an investor favourite last year when the value of the precious metal reached unprecedented levels. But if you invested in Brazilian real estate the chances are that you would have made bigger profits than the gold buyers.
Big Profits in Rio and Sao Paulo
Figures recently released by the Rio de Janeiro building union (Secovi-Rio) point to considerably higher profitability in property in Brazil than gold. Secovi calculates that Rio de Janeiro property saw a rise in value of 50% in 2010, some 18% higher than gold investment.
While 50% was a city average, some areas of the 2016 Olympic destination experienced exceptional returns. One-bedroom apartments in central Rio increased in value by 70% while other districts topped 90% profit for property investors.
Returns from real estate investment are also high in Sao Paulo. In the city generally, real estate rose by 34.4% last year, but launch prices for one-bedroom luxury apartments went up by a massive 71%. And it was not only buyers of real estate in Brazil who reaped big returns – investors letting Sao Paulo properties also made tidy profits. Residential rentals rose by an average of nearly 14% in the city with annual rental returns coming in at just under 48%.
Commercial Property Riding High
But the big story in Brazilian real estate is not just about residential property investment. Commercial property is also riding high on the back of a booming economy and record foreign investment in Brazil.
A recent survey by Colliers International finds Sao Paulo office property is at its lowest vacancy rate for a decade. The rate of 1.2% in 2010 reflects the imbalance of high demand and short supply. This imbalance continued into Q1 this year when the vacancy rate for quality office space in Brazil’s financial capital fell for the sixth consecutive quarter.
Despite the delivery of offices running to 30,000 square metres in 2010, high demand pressure continues. In Q1, rents for office property in Sao Paulo rose by 7.6% and Colliers International found that in ten regions of the city, high-grade office rentals were 50% higher than the market average.
Investors in Brazilian property with Obelisk International last year also saw high profits. Our market research indicates that returns from real estate in Brazil should continue to outpace other investments for the next few years. For Obelisk International, residential property has the best potential, particularly in sectors catering for the new middle classes where supply is unlikely to satisfy demand for at least the next 10 to 15 years.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter, Facebook and LinkedIn.
Commodity investment in gold was an investor favourite last year when the value of the precious metal reached unprecedented levels. But if you invested in Brazilian real estate the chances are that you would have made bigger profits than the gold buyers.
Big Profits in Rio and Sao Paulo
Figures recently released by the Rio de Janeiro building union (Secovi-Rio) point to considerably higher profitability in property in Brazil than gold. Secovi calculates that Rio de Janeiro property saw a rise in value of 50% in 2010, some 18% higher than gold investment.
While 50% was a city average, some areas of the 2016 Olympic destination experienced exceptional returns. One-bedroom apartments in central Rio increased in value by 70% while other districts topped 90% profit for property investors.
Returns from real estate investment are also high in Sao Paulo. In the city generally, real estate rose by 34.4% last year, but launch prices for one-bedroom luxury apartments went up by a massive 71%. And it was not only buyers of real estate in Brazil who reaped big returns – investors letting Sao Paulo properties also made tidy profits. Residential rentals rose by an average of nearly 14% in the city with annual rental returns coming in at just under 48%.
Commercial Property Riding High
But the big story in Brazilian real estate is not just about residential property investment. Commercial property is also riding high on the back of a booming economy and record foreign investment in Brazil.
A recent survey by Colliers International finds Sao Paulo office property is at its lowest vacancy rate for a decade. The rate of 1.2% in 2010 reflects the imbalance of high demand and short supply. This imbalance continued into Q1 this year when the vacancy rate for quality office space in Brazil’s financial capital fell for the sixth consecutive quarter.
Despite the delivery of offices running to 30,000 square metres in 2010, high demand pressure continues. In Q1, rents for office property in Sao Paulo rose by 7.6% and Colliers International found that in ten regions of the city, high-grade office rentals were 50% higher than the market average.
Investors in Brazilian property with Obelisk International last year also saw high profits. Our market research indicates that returns from real estate in Brazil should continue to outpace other investments for the next few years. For Obelisk International, residential property has the best potential, particularly in sectors catering for the new middle classes where supply is unlikely to satisfy demand for at least the next 10 to 15 years.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter, Facebook and LinkedIn.
Labels: Brazil, Brazil property investment, Brazilian real estate, investing in Brazil, investment in Brazil, investments, MCMV, Minha Casa Minha Vida, Obelisk International, property investment
posted by Alison Kane at 1:41 pm
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