From next week, the world’s attention will turn to Brazil as the country plays host to the 2014 FIFA World Cup. But after the final whistle sounds on the month-long tournament, you could be forgiven for thinking it’s business as usual for the Latin American nation.
In fact, the reverse is true. The country will be feeling the effects of hosting the world’s biggest single sporting event for a long time to come. And industries – including the local property sector – are hoping to capitalize on Brazil’s status as the host country.
An investment gold mine
A recent report from Colordarcy Investment singled out Brazil as the top emerging property market for buy-to-let investors. The country is offering high returns, with an average rental return of 6.33% in January this year and property prices rising 11.9% from 2013-14.
Returns as high as 24% in two years are available for those investing in the government’s Minha Casa, Minha Vida social housing scheme, the report reveals. As the World Cup gets underway and with the country also set to host the 2016 Olympics, it seems there has never been a better time to invest in real estate in Brazil.
The local perspective
But it’s not just investors who stand to gain. In two years, prices have risen a staggering 85% in Brazil’s largest city, São Paulo. As property prices rise dramatically, anyone with a mortgage can expect to pay it off within a short time frame.
With 3.1 million local and foreign tourists expected to flock into the tournament’s host cities, both homeowners and landlords are looking to make the most of football’s biggest event.
As the Wall Street Journal recently revealed, a string of lucrative deals has encouraged property owners to rent out their homes for the month – with some football fans willing to pay big for accommodation for the month. Among them is Brazilian footballer Ronaldinho, who is renting out his villa in Rio de Janeiro for more than $15,000 USD a night.