Brazil, Uruguay bustling with investment potentialNow the fifth-biggest global economy and housing the fifth-largest population in the world, Brazil is bustling with investment potential as it prepares to host the 2014 Football World Cup and the 2016 Olympics.

Coming on the back of 20 years of unprecedented political stability in the country, Brazil is investing US$86 billion towards infrastructure in the lead-up to the World Cup.

As such, Brazilian property looms as a fantastic commodity, with 20% capital gain per annum not uncommon across regional hotspots.

Compare this to stagnating or even regressing property values – and prohibitive buy-in prices – in the USA, UK, Australia and other traditional investment sectors.

Global Property Guide lists Brazil as a four-star investment location, with neighbouring (and often overlooked) Uruguay rated a full five stars.

Consider these factors:

  • Brazil and Uruguay have over 8000km of combined tropical coastline.
  • Brazil is only marginally larger than Australia, yet boasts almost 10 times as many people.
  • The number of cities in Brazil with more than one million inhabitants is 17. Sao Paulo vies for the title as the world’s largest city. Over 84% of Brazilians live in a city.
  • The average purchase price in Brazil is $3836 per sqm. In Uruguay the cost is lower – $1959 per sqm. Compare these with the average for the same quantity in the UK ($25,087), France ($14,696), USA ($13,377), Australia ($8774), Canada ($8288), Spain ($6151) and China ($6932). *All prices $USD
  • Rental yields (amount of rent received as a percent of capital outlay on property) in Brazil and Uruguay is also superior to major westernised countries.Compared to most English-speaking countries where rent pays off your home over a 30-year-plus period, in Uruguay the rent meets your outlay at 14 years. In Brazil the average is 20 years.
  • From Jan 2008-Jul 2012 house prices in Rio de Janeiro rose 118%. In Sao Paulo the figure was 92%.
  • Uruguay is famed as the most stable of South American nations, has a progressive government and is a tourism gem that, although largely unknown in the English-speaking world, attracts hordes of visitors from the Mediterranean nations.
  • Direct flights from Europe to northern Brazilian cities Recife, Fortaleza and Natal are exponentially increasing their tourist appeal.
  • Aside from hosting global sporting events, Brazil is a founding member of the United Nations, the G20 and is among a select band of countries recognised as ‘Megadiverse’ by Conservation International.
  • Brazil and Uruguay boast pro-landlord realty legislation and offer favourable residency requirements to foreign investors.