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Property in Rio de Janeiro 'presents a good rental opportunity'

Date added: 5th August, 2011 at 14:25
(view all articles from August, 2011)

Categories: Property News, Rio

Property in Rio de Janeiro could provide strong returns through renting to tourists and potential increases in house prices as the World Cup and Olympic Games are to be held in the city.

Mark Sharp, chief executive officer of the Association of International Property Professionals (AIPP), explained that the city present particularly good opportunities to make money through investment in Brazil.

He added, however, that there are many areas in the country that it would be shrewd to back at the moment.

When it comes to Rio de Janeiro, investors could profit from the city's tourist trade as well as infrastructure improvements that are being made ahead of the 2014 World Cup and 2016 Olympic Games.

The expert stated that real estate near the beach is popular with travellers and could present a good rental opportunity.

When people looking for property in Rio de Janeiro to be leased to visitors, they should think about who they intend to attract to the accommodation.

Mr Sharp suggested investors ask themselves: "Who will be living in the property and what type of flat or house do they look for? Are you in the right area to attract these people or are you too far out of town?"

Not only will be individuals be arriving to watch the forthcoming sporting tournaments, both of which will be hosted by Rio de Janeiro, but the government is also actively promoting tourism, which could mean the number of people looking for somewhere to stay could rise.

The value of Brazilian property in the area is likely to make gains as the country prepares to hold the events, although the expert stressed the difference the competitions can make to house prices is dependant on the health of the economy, which he stated currently looks like it will see "steady growth".

Indeed, figures from the nation's official statistics office show that gross domestic product grew 4.2 per cent in the first three months of this year and accumulated an expansion of 6.2 per cent in the four quarters ending in March 2011.

This contrasts sharply with the health of the UK economy, which grew 0.2 per cent in the second quarter.

With the Olympic Games coming at a time when the country is booming, there are several factors that could contribute to increasing the value of property in Rio de Janeiro, the expert stated.

"Experience from around the world tends to show that, on the whole, big tournaments have a positive effect on property prices," he remarked, noting that London boroughs near where the Games will be held in 2012 have seen house values jump by 28 per cent.

A rising number of middle class people can now afford to buy real estate in Brazil and new financial packages have been made available for first-time buyers, he explained.

Meanwhile, infrastructure improvements are being made to accommodate the influx of visitors the nation will see during in the World Cup and Olympic Games, including a new international airport in the North East of the nation.

This may mean property in Natal could see a rise in value as well, as the flight facility will be based in the city.

"All these factors lead me to believe that there will be a significant increase [in house prices] by 2016," Mr Sharp remarked. for Brazilian Property Investments - Connecting you DIRECTLY to the Property Seller; Brazilian Developer | Owner or the Selling Agent!!

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