Currency watch: exchange rates bring brazil property prices down 10pc

The Brazilian Real has taken a tumble recently, particularly against the US Dollar, whilst also reaching a four-year low against Sterling and the Euro. Boutique Brazil estate agent uv10.com is encouraging investors to seize this timely opportunity.

At the time of writing, 100,000 Brazilian Reals would cost 44,365 US Dollars, 29,759 GBP or 34,512 euros.  Turn the clock back four years and that same 100,000 Reals would have cost 49,906 US Dollars, 31,145 GBP or 36,020 euros. In short: Brazilian Real’s weakness is a foreign property investor’s strength.

The trigger for the currency’s fall in value is partly attributed to social unrest in Brazil. Leader Dilma Rousseff has proposed a national pact, supported by 68% of Brazilians according to a Datafolha poll, to calm the complainants by improving public services such as healthcare, education and transport, and by guaranteeing a balanced budget.

Another factor is lower than expected GDP growth in 2012 of 0.9% (UK figure was only 0.3%) but the Finance Minister assures us that the Brazilian economy is in a process of gradual acceleration with between 3 and 4% growth likely for 2013.  

Samantha Gore, Sales Manager for uv10.com, says, “If they take the plunge right now, buyers from Europe and America have the chance to take advantage of these favourable exchange rates and make significant savings. Prices are in the region of 10% more affordable than they were this time four years ago, which is as good an incentive to buy as any.”