According to the latest data from the Brazilian Ministry of Tourism some 4.4 million tourists arrived in Brazil in the first six months of this year, an 18.8% increase on the same period of last year. Business Monitor International is now forecasting an increase of 21.5% in arrivals to the country between now and 2015. These visitors are expected to generate around $9 billion in revenue during this period.
The number of international flights to Brazil has been steadily increasing as well, and there are now more flights available to Fortaleza and Porto Alegre. British Airways recently merged with Iberia, and it's expected this merger will increase tourism numbers even further.
Brazil is due to host the 2014 FIFA World Cup and the 2016 Olympic games, providing excellent opportunities for overseas property buyers.
Tourism growth, and the investment being made to improve the country's infrastructure are drawing investors from around the world, with property companies reporting huge increases in foreign demand.
This of course, is on top of the domestic demand, with recent data showing a shortage of housing of up to 7 million. With a 20% increase in the country's population being forecast over the next 10 years, it is expected that the housing shortage will continue to widen.
This combination of domestic and foreign demand is making Brazil one of the hottest property markets in the world. Investors are able to buy apartments and townhouses in new affordable housing developments in emerging cities like Natal at prices low enough to rent out to the local population at solid 6-7% yields. The shortages of quality housing in these cities, combined with the growing affluence puts these swanky new properties in exceptional demand, fuelling strong occupancy, while the growing mortgage market presents a viable exit strategy.