Brazil tourism boom boosts housing demand

Brazil tourism boosts housing demand

Photo credit: Vismar Ravagnani

Brazil's booming tourism industry continues to grow this year, boosting the country's already bulging housing demand.

Tourist arrivals in Brazil increased by 18.8 per cent in the first half of 2011, according to the World Tourism Organisation. As global international tourism grows by almost 5 per cent, Latin American countries have performed remarkably well, experiencing a 15 per cent increase in visitors. But Brazil beat the lot, welcoming a total of 4,351,081 visitors during the first six months of the year.

It’s another sign of the growing popularity of Brazil, and the tourist industry isn’t stopping any time soon. Brazil is preparing to host the FIFA World Cup in 2014 as well as the 2016 Olympics, and the Business Monitor International (BMI) figures forecast a 21.5 per cent increase in tourist arrivals over the next four years, which should generate revenue of around US$9bn.

The rise in foreign interest is boosting the housing market too. The demand for home ownership in Brazil is rocketing with R$34 billion being pumped into the construction of residential property across the country. But supply still fails to meet demand, with the current housing deficit of 7 million continuing to drive new developments.

Ray Withers, director of international real estate agent Property Frontiers, comments: "We have been seeing a consistent influx of investment in Brazil, which will only continue to expand when the Olympics and World Cup arrive. These events will spur Brazil to develop a modern infrastructure, encouraging investors to look into the returns available from Brazilian property."

As reports predict a 20 per cent rise in the country's population over the next 10 years, you can bet that Brazil will be building property for some time to come.

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