SAO PAULO, June 4, 2015 /PRNewswire/ -- Brazil is considered the second best real estate market for investment, and in 2015 will have a chance to attract a record number of foreign investors interested in purchasing property in this country. This is the finding of a recent analysis completed by Vitacon, a leading Brazilian builder.
According to this study, undertaken by the company's market intelligence department, the slow-down in the Brazilian economy creates a scenario that is attractive for foreign investors. "One of the favorable elements is the high value of the US Dollar compared to the Real. Having reached a high of R$ 3,20/US$, foreigners have seen their purchasing power increase quite significantly" said Vitacon CEO Alexandre Lafer Frankel.
Frankel explained that following years of increases, prices for real estate in Sao Paulo, the nation's financial center, are now stable due to the country's economic slow-down, but are expected to continue to increase in the coming years. "We have received numerous foreign investment funds have contacted us and shown an interest in our launches, as they believe that, given the economic situation, this is the ideal time to invest in Brazil" said the CEO.
"The bad mood is momentary and will pass. Brazil has over 200 million inhabitants and a huge housing deficit"
We truly believe in offering a portfolio that is different from our competitors. We are investing in residential investment properties, hotels and student housing. Through its partnership with Sampa Housing - a company that specializes in apartment rentals for executives -, the company provides support in terms of leasing and managing the property on behalf of the owner.
One-bedroom apartments on a high
The Vitacon study shows that investors prefer one-bedroom apartments located in the higher-end neighborhoods of Sao Paulo, such as Vila Olimpia, Itaim Bibi and Jardins. There is an explanation for this, as in 2014 so-called "compact" apartments accounted for 28% of the volume sold, a record in terms of the share of this type of property.
When we look at statistics year by year, it is clear that the sale of this type of property has grown steadily since 2007. Seven years ago, one-bedroom apartments accounted for only 2% of total sales. Today they account for 28%, and their share should increase even more, said Alexandre Lafer Frankel, especially in 2015.
Vitacon is an industry pioneer in micro-units. "We realized this was a trend in 2009, and today business executives in New York and London come to us because of our experience," he added.
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