Property in Spain Out of Favour With Investors - is Brazil the New Spain?

Its official, the Spanish property market is out of favour with today's property investors. Over the last 10 years Spain has become one of the most popular property investment markets in both Europe and worldwide, but recently has seen an about turn and a lack of confidence, with investors now turning their sites toward better capital growth opportunities that lie elsewhere within the up and coming emerging markets.

There are a number of reasons for such a lack of interest in Spain right now including sky high price's, the global credit crunch, the UK economic situation and also the value of the UK pound against the Euro, which has seen a large drop over the last 12 months.

Although these and other factors have all constituted in the current Spanish property market fragility, I still believe that Spain is set to recover over the next couple of years. There can be no denying that Spain is still one of the most popular tourist destinations in Europe, especially with the British holiday makers. Spain still boasts great all year round weather, has miles of sandy beaches, has excellent accessibility, a stable economy and has a relatively low crime rate, which means that it will always be a popular holiday destination and a firm favourite with migrants from the UK.

So the question is, if Spain is so out of favour at the moment, where are property investors looking to purchase now? There are a number of emerging property hotspots around the world, but I feel the best option has to be Brazil!

What springs to mind when you think of Brazil? Football?, tanned bodies?, the Copa Cabana?, poverty? or rain forests? well soon you will be adding property investment to this list.

President Lula da Silva has made great strides in recent years with inflation at an all time low and predictions from economists that the country will become the worlds 5th largest economy by 2050. It's also worth noting that the country has the worlds largest water reserves and is totally self sufficient in Oil due to large oil finds in 2007 which will put it into the top 10 of world oil exporters.

Brazil is set to be one of the top off plan property investment locations over the next few years and there are many reasons why this is forecast.

Brazil has 7,000 kilometres of beautiful sandy beaches, a wonderful near perfect all year round climate of around 28c, a stable economy and with estimated property price increases of around 20% per annum, its set to become a firm favourite with the savvy property investor.

One of the most likely hotspots in the country is Natal which is in the north-east of the country in the region of Rio Grande de Noite. There is a new commercial airport ear marked for the area which will become a hub for both American and European visitors with an estimated 5 million passengers per year set to pass through the region.

Natal has already been targeted by many of the forward thinking European property developers and much work has already begun on the first phase of developments there. Over the next 3-5 years, Natal should see an unprecedented growth.

When it comes to value then look no further. With prices starting at around 50,000 GBP, Brazil promises to be a winner when it comes to quality investment opportunity.

Could it be the next Spain? Well, we will just have to wait and see!