Foreign currency strength creates Brazil chance for foreignersBrazilian property is becoming a greater attraction overseas buyers as foreign currencies dominate the Real, according to a local agency.
The Brazilian currency has fallen by 28% against the Pound from June last year, according to uv10’s sales manager Samantha Gore, while the U.S. Dollar is at a two-and-a-half-year high. Elsewhere the Euro has hit a two-year high against the Real.
And Gore believes this is causing Brazilian property to be highly attractive.
Elsewhere Brazilian Finance Minister Guido Mantega has said that the fall in the Real’s value will help boost demand for Brazilian products.
“The weak Real is beneficial for the Brazilian economy because it makes Brazilian products more competitive,” Mantega said.
Upcoming events and falling interest rates are also generating optimism about Brazil’s short-term future said Gore. ‘The middle class continues to grow, fuelling demand for property and keeping prices on an upward trajectory, at least for a few more years. Benchmark interest rates have just been lowered to 9%, which is great news for local buyers eyeing a mortgage and developers seeking finance for new projects,” she said.