Real estate investors from all across the world are looking for the most optimal locations to focus on, and Brazil is currently among the top markets to consider. Philippe Germain, a well-respected real estate investor, thinks that Brazil is a potential goldmine for real estate investing. Discover why he thinks so and what he would recommend to take into account as you decide to opt for real estate investing in Brazilian markets.
Why Opt for Investing in Brazil Real Estate According to Philippe Germain
Picture pristine beaches fringed by emerald rainforests, a blossoming economy, and real estate at a fraction of established market prices. Does all of this sound too good to be true? Enter Brazil, a sun-drenched investment haven where the numbers are on the investor’s side. Philippe Germain lists some of the most crucial factors that make Brazil such a safe haven for investment.
- Economic Momentum: The economic troubles of the country are in the past. Brazil is set on an optimistic path, with the Finance Ministry estimating a 3.2% GDP growth for 2023 after a robust performance in the first half of the year. As Philippe Germain states, this translates to rising property values, with forecasts predicting real estate appreciation rising by 5.5% in 2023, and increasing by 4-6% further in 2024.
- Tourist Magnet: Buckingham Palace is a thing of the past; Brazil is drawing crowds like none other. The tourism industry is projected to grow by 9.5% in 2023, fueled by breathtaking natural beauty, vibrant culture, and a drop in airfare costs. This spells high demand for vacation rentals, as Philippe Germain explains.
- Untapped Potential: Unlike saturated markets, Brazil offers hidden gems that are unmarred by the detriments of the most trendy vacation spots. It has secluded and peaceful areas to offer along the coast. Coastlines such as São Miguel do Gostoso boast stunning beaches and burgeoning tourism, yet remain relatively undiscovered, as Philippe Germain noted.
- Government Incentives: Brazil wants foreign investors and to attract more of them, the government has rolled out the red carpet, with initiatives like simplified property purchase processes and tax benefits for foreign investors.
Philippe Germain on the Role of Cultural Nuances in Brazil
Brazil’s vibrant shores beckon tourists from all over the world with their pristine beaches, lush rainforests, and mesmerizing sunsets. But for the real estate investor, a Brazilian vacation villa can be so much more than that. It can be a gateway to a cultural tapestry waiting to be unraveled. Philippe Germain advises you to take heed of the cultural nuances of the location you’re seeking to invest in as it will help optimize your rental properties’ performance. So, let’s navigate the cultural currents that can make your rental villas thrive.
- Fest Season: Brazilians love to celebrate, and it is well-known for its carnivals of joy. And while this may attract tourists to the location, it can get tiring at times. Philippe Germain recommends that you consider soundproofing your rental properties for noise-sensitive guests.
- Local Flavors: Food is a vital part of Brazilian culture, and showcasing local specialties in your villa adds an authentic touch. Partner with local cooks or simply decorate the rental property with themes of the local cuisine. This not only enriches the guest experience but also supports the local community.
- Building Relationships: Invest time in building relationships with locals. They can be invaluable sources of insights, advice, and even unexpected opportunities for any investor. These connections will enrich your experience and contribute to the success of your villa.
By understanding and embracing these nuances, you’ll create a space that resonates with travelers, generates sustainable returns, and allows you to truly experience the magic of Brazil. And to maximize these results, Philippe Germain suggests taking a closer look at some successful examples of build-to-rent projects.
Tips for Aspiring Investor: CEG Invest’s Success in Brazil
Aspiring investors can look to more accomplished projects for guidance in their journey. Philippe Germain recommends taking CEG Invest as an example due to his personal experience with the firm. This experience has shown him how sustainable the firm’s practices are and how reliable their strategies tend to be. Currently, CEG Invest is focusing on a few key projects, one of them being a particularly promising beneficial endeavor known as Ibitu Gostoso.
Ibitu Gostoso is a sustainable luxury community of gated villas along the Brazilian coastline of São Miguel do Gostoso. CEG Invest chose this location for a number of reasons, taking into account all the geographical and cultural nuances of the country. The coastline is simultaneously rich with the upsides that can drive investors to Brazil such as serene nature and breathtaking scenery whilst maintaining the comparative peace and quiet of the hidden gem that it is.
Philippe Germain describes Ibitu Gostoso as a build-to-sales and take advantage as well to the short term reantal market, one of the most active in Latam. The development project with 107 exquisite villas, designed to evoke a sense of comfort and relaxation. Each villa has a 4-5 bedroom layout and is strategically built to accommodate guests who would enjoy taking walks to the beach, the city center, or amenities. All these factors are thoughtfully considered by CEG Invest to maximize ROI even further and achieve optimal results. By taking tips like these into account, you can optimize your own returns.
Philippe Germain on CEG Invest in Other Markets
Philippe brings some other examples of successful rental projects that investors can learn from. CEG Invest has also taken an interest in the Suburban areas around New York as an investment location due to a whole host of environmental, cultural, and economic reasons. Many residents of NYC have been leaving the city in recent years, and CEG Invest took note of this trend. Philippe Germain recommends all investors pay close attention to budding trends like these to achieve better results in their own investments. Noticing this trend, CEG Invest did some research and discovered that many NYC residents were looking to settle down in the Suburbs.
And so the idea of developing Edgewater and River Creek was born. Philippe Germain describes the former as a multi-family residential rental development and the latter as a mixed-use rental property, both located in the suburban city of Beacon near NYC. The first project – Edgewater, is designed to satisfy the rising need for accommodation as a result of the incoming population. River Creek, on the other hand, is designed to cater to the needs of those who will be looking for office spaces. CEG Invest took these steps in advance, by doing meticulous research and ensuring the success of their project. Philippe Germain suggests that all investors follow their example and apply this type of strategy to their own projects for optimal output.